Tuesday, April 8, 2008

Used car salesman to head Cox Newspapers

Posted by John F. Sugg on Tue, Apr 8, 2008 at 10:11 PM

Nope, that's not a joke.

Jay Smith, president of Cox Newspapers — that tentacle of the Coxtopus that runs the AJC, 16 other dailies and a gaggle of non-dailies — is retiring.

Smith has presided over the dramatic circulation declines and editorial deterioration in Atlanta and most other Cox cities. The internal statement obtained by CL calls those accomplishments "distinguished service."

However, Cox sources say that the company's potentate, James Cox Kennedy, has told the group's editors that the AJC is on track to lose $17 million this year, and that Smith's retirement was forced. "Rather abruptly," one Cox employee said.

But whatever else, Smith was a solid news guy, widely respected by other newspaper editors.

The new boss, however, isn't the same as the old boss. Sandy Schwartz, the new president of Cox Newspapers, will also remain as president of Cox Auto Trader. Those are the little publications available at service stations. Other than the fact that they're published on newsprint, it's a little difficult to see the relationship to journalism. To be fair, Schwartz also has a background in journalism. But, it's telling about the newspaper industry that Cox feels its future lies in the direction of publications that have no content other than advertising. Who needs all of those grouchy journalists, anyway?

(Cox previously owned 25 percent of CL, and Smith served on our board. We felt Cox was using its stake to gain inside information on CL, which Cox then used to launch its faux alternative newspaper, AccessAtlanta. We subsequently bought back our stock from Cox.)

Here's the entire statement from Cox:

After 37 years of distinguished service with Cox Newspapers, Jay Smith has announced his decision to retire on May 1.

Succeeding Jay will be Sandy Schwartz who will become president of Cox Newspapers while retaining his current position as president of Cox Auto Trader. Over the next few months, Jay will work closely with Sandy and with Brian Cooper, executive vice president of Cox Newspapers, to ensure a smooth transition.

Jay has done a tremendous job of leading Cox Newspapers aggressively through a number of transformations to respond to a rapidly evolving media environment, and Cox is grateful for his talent, courage, leadership and dedication. In 1971, he joined Cox as a reporter for the Dayton Daily News, where he also worked as assistant city editor, assistant managing editor, business manager and eventually, publisher. He spent seven years as publisher of the Atlanta newspapers, and also headed the Austin American-Statesman. In 1994 he was named president of Cox Newspapers. Jay leaves behind an impressive tradition of excellence in newspaper publishing and is past chairman of the board for the Newspaper Association of America. He also serves as a board member of the Associated Press.

As the newspaper landscape continues to shift rapidly, Sandy is uniquely positioned to meet the challenge head on as our business evolves.

Eighteen of Sandy’s 23 years with the company have been with Cox Newspapers. He joined Cox in 1985 as a features editor of the Tribune Newspapers in Mesa, Arizona and rose through the ranks to become editor and was later named president and publisher in 1995. He then served as vice president and general manager at both The Atlanta Journal-Constitution and the Austin-American Statesman, and later as executive vice president of Cox Newspapers. Since 2003, he has complemented his print journalism background with significant digital media experience, first serving as vice president of business development for Cox Enterprises, from 2003-2006, and then moving to his current role, leading AutoTrader.com, AutoTrader Publishing, and Auto Mart.

While we are ever appreciative of Jay’s years of service and the unparalleled standard he has set for the industry, Sandy’s experience and success at Cox during times of unprecedented change make him a natural fit to ensure that Cox Newspapers continues to deliver the quality content to readers when, where, and how they want it.

Our company is graced with many who share a commitment to the Cox Values, our employees, audiences, shareholders and the communities we serve – and you would be pressed to find better examples of leaders than Jay and Sandy. I know you will join me in wishing Jay all the best on his retirement, which I know will be filled with friends, family and his first grandchild this summer. Please join me too in congratulating Sandy and in giving him your full support on his new responsibilities.

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Okay John. Since you are now a member of a solution think-tank, do some out-loud thinking: What would you do to turn around the fortunes of the AJC?

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Posted by Sellout on April 9, 2008 at 9:05 AM

The more than half-century slide in newspaper circulation and fortunes isn't a single-reason problem. The declines in the 1960s weren't caused by the same factors as today. That said, for the last two decades, newspapers -- the AJC among them -- have devastated their news staffs, reduced content to intellectual gruel, become fearful of the powerful in the community and the nation, etc. etc. They -- and I include alternatives in this, as well as dailies -- have abandoned the very things that gave them vitality and made them must-read publications for engaged citizens. So, if Jim Kennedy hired me to run his newspaper group, I'd build back the news staffs, make investigative watchdog journalism the hallmark of the newspaper (and that means going after mayors, presidents and corporations, and not just picking the low-hanging fruit of state agencies), hire the most incisive columnists available (I find it hard to imagine the rampant fear of news managers who tremble at the thought of another Grizzard, when if they want their paper to survive they should field a half dozen bold news columnists). And newspapers must get honest about themselves. People don't trust them because they know they don't report -- report truthfully -- on themselves. As Carl Bernstein has said on several occasions, media groups and newspapers are among the most opaque institutions in America. Cox has even hired publicists to assist in keeping news about itself from reaching people in Atlanta, as I have detailed. And yet the Cox folks want us to trust them to be gatekeepers of information necessary to build and sustain a great community. More than anything, newspapers need competition. The last time I saw two dailies go through years of getting better was during the circulation war between the St. Pete Times and Tampa Trib during the late 1980s and early 1990s. The Trib (where I worked) was owned by one of the most backwards thinking media companies in the nation, yet even it forged ahead into great journalism for one reason: competition. In Atlanta, I worked for the Constitution back when, even with common ownership, there were two newspapers that vigorously competed, and both were better products than the sad offering today. I also think newspapers need to explore other forms of ownership. As I wrote in my farewell column, there are no longer any publishers like Jack Knight, who said he would rather be remembered for putting out the best newspaper rather than the most profitable one. The St. Pete Times remains one of the best newspapers in the nation precisely because it is owned by a non-profit. That's a model that should be experimented with in other cities. Democracy must have informed citizens to survive -- and what's clear is that in today's media model, the last priority is good journalism.

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Posted by JOHn Sugg on April 9, 2008 at 10:08 AM

John Sugg couldn't work for the AJC or any Cox newspaper. Too many people would be required to clean up his messes. This is one of his messes. As a rule, I ignore Sugg. In the digital age, however, falsehoods have a way of taking on lives of their own. So I break my rule. Last December, I made the decision to retire, which wrecks Sugg's conspiracy that I was "forced out." Jim Kennedy did speak with Cox editors,just as he does most years when they meet in Atlanta. His passion for newspapers is one I share. That came through in his remarks to our editors, one of whom said later: "Who would you rather work for, Jim Kennedy or Sam Zell?" The question answered itself. These are challenging times for newspapers, but there is nothing the AJC can learn from Creative Loafing, one of the many reasons Cox sold its stake in that company. If I could have hand-picked my successor, it would have been Sandy Schwartz. Sandy's journalistic integrity and business savvy are what newspapers need. Sandy has forgotten more about quality journalism that Sugg will learn in a lifetime. Sugg also overlooks the fact that Sandy presides over the most successful online automotive classified site in the world, AutoTrader.com, in addition to the Auto Trader publications. Quality newspapers rely on a solid financial foundation. Sandy knows how to provide both. I will retire with my head high and my honor intact. It's a posture and a feeling John Sugg will likely never know. Jay Smith I will retire after nearly 37 years with Cox with my head high and my integrity intact. That's a posture and a feeling Sugg will never know.

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Posted by jay smith on April 9, 2008 at 11:09 AM

It's a pretty easy -- indeed, sleazy -- criticism from Jay Smith. If he had got beyond the ad hominem attack ... but, well, he didn't do that. I don't know what messes of mine he's talking about. But his messes are pretty clear, a continuing steep slide in circulation and the accompanying erosion of quality at newspapers he ran. There are any number of former and current AJCers who will be glad to tell Smith just how awful the morale and culture have become under his watch. December, when he said he made his decision, was a mere four months ago. That is significant, not that Smith would tell you why. It followed the November Audit Bureau of Circulation report that showed another dismal decline in circulation -- 9 percent. Sounds to me like the perfect reason for James Cox Kennedy to tell Smith: "Pick your exit strategy." Smith's recollection about CL's stock is amusing -- and wrong. Our board investigated and found Cox had acted unethically. The board included national leaders in journalism, finance and business, and notably the harshest assessment of Cox came from a retired managing editor of the Wall Street Journal, every bit Smith's peer. Smith doesn't challenge my assertion, based on comments from Cox employees, that the AJC is on the road to financial losses this year. Haven't seen that reported. Those losses likely would have been another good reason for Kennedy to tell Smith: Announce your retirement, pal. The Kennedy that Smith lauds -- he's often described as the most hated many in Montana, where he has a sprawling ranch and a feudal regard for the state's citizens. Kennedy's deeds include running live electric wires across publicly owned rivers to stop the public from using public roads to get to public lands to float down the public rivers. Frankly, Sam Zell, the "grave dancer," seems like a nicer guy. The issues I've reported on about Cox have been well documented, although you won't find them in the pages of the AJC. They include: -- The AJC not reporting on FCC deregulation proposals in 2003 that would have meant billions in revenue to Cox -- until it was too late for citizens to voice their opinions to the FCC. -- Cox hiring publicists to keep information reported by one of Cox's own reporters, Elliot Jaspin, from reaching ATlanta. That information, not surprisingly, dealt with the AJC's shoddy race reporting. -- Cox being stripped of broadcast licenses in Miami due to "inappropriate" relations with an FCC commissioner. -- The shutdown of the Miami News, resulting in federal probes of Cox, including for manipulation of Knight-Ridder stock. Cox shut the News after promising that it would preserve a second editorial voice in Miami. -- The firing or resignation of two of Cox's most talented editors for refusing to endorse Nixon in 1972. The endorsements were apparently a quid pro quo for Nixon dropping opposition to media monopolies called Joint Operating Agreements. Just to ensure this isn't, as Smith asserts, my "mess" -- the story was broken by Ben Bagdikian, America's foremost media critic. A Columbia Journalism Review account can be found at: http://backissues.cjrarchives.org/year/91/6/joa.asp -- Cox's free-spending lobbying of the FCC and other federal agencies for media monopoly and consolidation efforts. Don't look for those stories in the AJC, which in itself is another story.

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Posted by JOHn Sugg on April 9, 2008 at 1:29 PM

It's pretty easy and sleazy for CL to take pot shots at a direct competitor, too. Gee, such a surprise! I'm sure that ALL the people who toil at CL for wonderful benefits and enormous sums of money are happy as little bluebirds, that there is NEVER a morale problem and that EVERYONE always agrees with the boss because the boss is not really a boss, but everyone's best bud. Right? We can only feel deeply blessed that the AJC doesn't fill pages and blogs about the crap that must be going on inside the CL. Who cares? I do admit what happens at the AJC is a bit more interesting, so I understand it to a degree the fascination. But most of all, it seems like a case of penis envy, Suggs. Oh, excuse me! I lapsed into one of them addy hominem attacks. Just admit it, Suggs, CL is grubbing for the almighty dollar just like the folks at the AJC. You pretend to be different, but I have it on VERY good authority that, really, you ain't. Not one bit.

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Posted by In the Know on April 10, 2008 at 3:11 PM
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