Sadly, I didn't hear that Aaron Barnhart or Mike Hendricks were fired so I can't describe recent Star layoffs as successful like so many other sycophants of the failing local company.
So . . . Let's look a couple of the biggest myths surrounding ongoing layoffs at Kansas City's so-called "paper of record."
1. "The Star is in great shape, it's just McClatchy debt service that's causing so much hardship."
FALSE!!! The Star wouldn't last a year in business by itself if it were not for the deep pockets of their corporate parent. Folks who tout this lie are misrepresenting The Star's financial reporting and overlooking that The Star's debt load is also a part of McClatchy's burden. Star devotees who tout this line simply don't know a lot about how business works or have fallen for more PR spin. Complaining about the corporate parent is a common line from newsies not in touch with reality given that it's only the corporate parent which allows the company to exist despite its long list of financial obligations that are nearly about to be called in or maybe settled for pennies on the dollar.
2. "Star financial hardships are indicative of the overall financial turmoil of The Great Recession."
I really like this lie from The Star because it contradicts so much of their other reporting about an overall economic turnaround. And really, this is one of the most overall pessimistic statements from the dead tree institution because it hints that the entire American Economy is also headed toward obsolesce. I really hope not.
Unfortunately, these kind of misleading excuse and double speak are just another symptom of what's wrong with THE INCREDIBLE SHRINKING STAR. Like most of us, the company can't come to terms with its own demise so the only thing that's left is propaganda and accounting fun. I just wonder if even Jeneé Osterheldt believes this kind of obfuscation.
Still, I'm sure The Star can keep up the same routine as employees continue to be lined up for the firing squad and the dead tree newsies become not so special in a crowded online marketplace of ideas.
LINKS:
KC Star Lays Off Dozen
Star lays off more people even though business is good
-Star devotees who tout this line simply don't know a lot about how business works-
ReplyDeleteFinancial analysis from a guy who lives in his Mom's basement. Nice. Although, I've heard it's a rather gully pad.
Star is over. Look for new website soon.
ReplyDeleteWatch out Tony. Star journalists are bitter, petty and mean people.
ReplyDeleteWouldn't you be, if the lifetime career you love was cut short by changing times?
ReplyDeleteEconomic sea changes are a bitch, aren't they? I endured it a couple times. It was hard retraining after you got really good at one career, to have to start over to relearn another one. And do that twice or three times!
Welcome to our world!
remember the button hook? yeah, baby - that's newspapers today. an entire industry destroyed by technological advances.
ReplyDeletekind of what happened to typography when PCs came along.
-kind of what happened to typography when PCs came along.-
ReplyDeleteum, that would be typesetting
true dat!
ReplyDeleteKCSD is busting the school teachers union for tenured employees. Merit system builds a great organization.The star should do the same.Tenured employees were saved over better performing employees. I cant read the Stars editorials about how to fix KCs ills when they cant even fix there own. The Star has an opinion on what is best for Kc always. Mayor, Council,Mast,Police,Fire,Retirement(pension) funds,Economic Development,Basic services,Crime,Trash pick-up,Red lite cameras,etc,etc. You are soo smart Yael why dont you fix Mclatcheys problems and you may gain some cred.
ReplyDeleteTony - You may be a decent blogger but you don't know much about corporate finance. I don't know if the Star is still profitable as a stand-alone entity, but not so long ago it was.
ReplyDeleteIn any case, McClatchy overpaid for Knight Ridder five or so years ago and is now saddled with a lot of debt to service. As of their latest 10-Q, filed last week with the SEC (www.sec.gov) McClatchy's longterm debt stood at about $1.8 billion and from a year ago, had been paid down by a mere $68 million, not much paydown on almost $2 billion in debt.
I'm not defending or trashing The Star, merely throwing some pesky facts into the mix - but like a lot of journalists say, kiddingly, why lot facts get in the way of a good story, or in this case, a blog posting?