Brian Tierney Fights to Save His Philly Dailies
Ad Man Restored Local Ownership to Philadelphia Papers
Sep 23, 2009
Whether Brian Tierney keeps his job at the helm of the Philadelphia Inquirer and Philadelphia Daily News, remains to be seen. But even if Tierney's tenure ends soon, his time as publisher of the bankrupt papers has already produced a fascinating new chapter in the history of Philadelphia journalism.
Philadelphia Media Holdings in Bankruptcy
A U. S. bankruptcy judge will soon make a decision about who should own the papers. Even though Tierney's Philadelphia Media Holdings has defaulted on over $300 million in loans, Tierney believes he offers a deal no creditor should refuse in today's bad business climate. He has asked the judge to consider:
- That his business partnership has raised millions in new cash
- That this cash, along with real estate including the paper's landmark office building, totals about $66 million dollars
- And his claim that if the creditors were to repossess the papers, they would find no new owner that could make more profits from the beleagured businesses than Tierney himself has managed
Tierney has also argued passionately that the hometown team of owners is best for the papers, and hence best for the city of Philadelphia. His argument includes one part appeal to civic pride, and one part passion for the journalism the papers produce.
"This isn't at all about saving some percentage of the investment," he told the New York Times recently. "If this was about money, I'd go back into advertising. We're fighting for something more important." On another ocassion he told Michael Sokolove writing for the the Times Magazine, "This is the people's work, a public trust."
To many in Philadelphia, Tierney was an unlikely candidate to emerge as a rescuer of newspapers and a defender of the journalism they produce. The words quoted above show a new side to Tierney, the ad man, who once could be heard dismissing Inquirer coverage as "biased, unprofessional, and unethical."
Good Times Turn Bad with Knight Ridder
Tierney acquired the papers in 2006 when they were orphaned as a result of the break up of the Knight Ridder corporation in 2005. McClatchy Newspapers stepped up to buy the 31 former Knight Ridder newspapers, but then immediately liquidated 12 of them, including the Philly papers.
The Inquirer had enjoyed some of the best years in its 180-year history under Knight Ridder ownership, winning multiple Pulitizers over a 15-year period beginning in 1975. But the newspaper industry began to contract in the 1990s and corporate owners like Knight Ridder typically enacted budget cuts and staff cutbacks to save high profit margins.
Employees in affected newsrooms such as the Inquirer's were often frustrated, unhappy ones. While in one sense the end of Knight Ridder ownership added more insecurity to the lives of newspaper employees, in another sense it brought a more hopeful future.
Tierney Transformed
Still, Tierney, former advertising/public relations whiz, Republican party actifvist, scrappy – some have said bullying – adversary for his clients, had to mount a salesjob of impressive magnitude in order to win ownership of the papers, and then win over the confidence of his newly-acquired news staffs.
To win the bid in 2006 over the five out-of-town firms competing with him for the newspapers, Tierney assembled a "dream team" of potential owners from friends and contacts who had ties to some of the biggest businesses in the region. Together they produced $150 million in cash and borrowed an additional $365 million to make a bid of $515 million for the papers. When they won, it was considered a victory for the underdogs as well as a victory for the local ownership team.
Then Tierney sold himself to his reporters. With the staffs assembled for a press conference announcing the new owners Tierney proclaimed, "I really do believe from the bottom of my heart that the next great era of Philadelphia journalism begins today right here in this room." He also spread around bushels of energy, optimism and ambition, according to Rachel Smolkin who wrote of Tierney's legendary upbeat approach to problems in a profile at American Journalism Review.
Promises to Keep
Finally, Tierney made some promises – some easier to keep than others.
Addressing his past history with reporters, he promised to steer clear of potential conflicts of interests. He and the other investors signed a pledge that they would not interfere with editorial policy. He also promised to keep the Daily News in business, and to refrain from cutting staff.
But it was only a matter of months before the new owner found that staff cuts were indeed going to be necessary. And the debt load has proved to be more than even Tierney's optimism has been able to conquer. Still, he fights on, determined to keep trying. For that he needs a second chance.
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