BBC in uproar and not a Twitter from @rupertmurdoch

October 23, 2012

Considering the gloating opportunities, @rupertmurdoch has been abnormally restrained. Apart from a terse but prescient: ”Saville (sic)- BBC story long way to run. BBC far the biggest, most powerful organization in UK,” nothing has been said on the subject since October 14th.

Maybe the old boy has got bored with his favourite hobby, the British media. But I somehow doubt it. And his silence certainly can’t be attributed to not wanting to stick the knife in – as Hugh Grant, the “Scumbag Celebrity”, knows to his cost. No, @rupertmurdoch is surely waiting until the dish is sufficiently cold to make a mouthful of it.

And what a mouthful. The BBC has rightly made much of the fact that Savilegate (all crises these days are “-gates”, aren’t they?) has a silver lining. No other news organisation, they say, would be capable of an equivalently rigorous self-examination in the wake of such an error. “Mea culpa” is not, after all, a term you hear very often at News International – or anywhere else, for that matter, unless the lawyers so decree. But the BBC being more transparent is no guarantee that its senior executives are any less mendacious, self-serving and slippery than those of other media owners.

Today’s performance before the culture media and sport select committee by a nervous George Entwistle, now director-general, then director of vision (i.e. telly), left us in little doubt that Newsnight’s editor Peter Rippon is the one being lined up for the sacrificial knife. And it’s his blog what done it.

True, Rippon’s version of the facts leaves much to be desired. There are a number of errors in the post which make it apparent that, even looked at in the most charitable light, Rippon’s grasp of the situation was woefully inadequate. The point about not withholding information from the police, for instance, is downright misleading (whether deliberately so or not). That’s certainly conduct unbecoming in the editor of a programme of Newsnight’s calibre.

But all this proves very little, except that Rippon was desperate for some ex-post facto sticking plaster to justify a decision that he himself may have found incompatible with his professional ethics. The question is: how did he arrive at that decision? Hard evidence has yet to surface, but circumstantially there seem a number of things that just don’t add up. At one moment, Rippon is reported by the Newsnight editorial team to be upbeat about the Savile programme’s prospects; the next, he has decided to shelve it. Apparently, this happened very soon after he had informed the BBC’s head of news, Helen Boaden, of the programme’s content and intention. Boaden then told her boss, Entwistle. But, according to him, only in the most airy, abstract manner. With the result that this normally competent media professional entirely failed to recognise the Newsnight investigation might in, some way, undermine a lavish tribute programme shortly to be aired in Sir Jimmy’s honour – and make complete fools of the Corporation’s senior executives at the same time. That at least is what he is asking us to believe, since he clearly took no action to review the tribute programme.

Rippon, of course, is denying that Boaden gave him any advice beyond telling him to act according to his own lights. Whether that advice included a knowing wink and a nod, alluding to his future on the BBC career ladder, we shall probably never know. Boaden’s words are unrecorded, and she shows no sign of wishing to enlighten us further.

That said, maybe we should keep this affair in perspective. BBC executives may be dealing in half-truths and obfuscation, but they can hardly be accused of breaking the law. Unlike Trinity Mirror, publisher of the Daily Mirror, Sunday Mirror and The People, which is now facing civil actions over phone-hacking from former England manager Sven-Goran Eriksson and a number of other minor celebrities. Trinity Mirror’s senior management is, as it has routinely done since questions started to be voiced about Piers Morgan’s tenure as editor of The Mirror, denying any wrongdoing. But shareholders obviously don’t believe them. At one point, TMG shares dipped 12.5% today. Civil actions were the slow-burning fuse that eventually lit the powder-keg at News International.

As I say, the old boy is going to have a right old feast, once he gets round to serving it.

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Seven-day-a-week newspaper publishing revolution shatters The Mirror

May 30, 2012

The Rabelesian guffawing in The Mirror’s newsroom when Trinity Mirror’s chief executive announced her unlamented departure is now reduced to a sullen whisper.

Who will be next, the hacks timorously wonder as they survey the seismic damage caused by this morning’s fresh round of top-level sackings? Out, in short order, have gone Richard Wallace, editor of The Daily Mirror, and Tina Weaver, veteran editor of The Sunday Mirror. In has come Lloyd Embley (who? – formerly editor of the People) as the new editorial supremo of a “merged” 7-day-a-week Mirror newspaper.

In a classic example of tabloid double-think, Embley told his shell-shocked team: “This is not a slash and burn exercise. Nor is it about managing decline.”

Isn’t it, Lloyd? Difficult to see what else it might be. Certainly not a strategic decision, made from strength. Nor, to use some ghastly marketing jargon, is it “proactive”. Indeed, as so often in the world of newspapers, Rupert Murdoch continues to take the credit, having got there first with the 7-day Sun – while Trinity hobbles behind, a lame second. If the two editors were stunned by the manner of their summary dismissal this morning, they can hardly be surprised by its ultimate cause. All the circulation gains accruing to The Sunday Mirror after Murdoch unexpectedly closed the News of the World were wiped out almost overnight by his introduction of The Sun on Sunday.

If this brutal step-change really is, in the words of the Trinity statement, ”a further step towards creating one of the most technologically advanced and operationally efficient newsrooms in Europe,” why on earth didn’t senior management have the courage of their convictions and implement it before?

Because, let’s face it, it isn’t really a step-change at all. And because, where newsrooms and newspapers are concerned, there are more important things than being “technologically advanced” and “operationally efficient”. Like keeping your journalists on side. Which is difficult when you are savagely cutting their numbers to achieve shareholder “value”.

What seems to have occurred here is some highly expedient corporate chicanery. How can it be that Sly Bailey, the lame duck outgoing chief executive, has been allowed to make these changes, changes she would never have dared to make before she resigned? Simple. The new board, and particularly the new chairman David Grigson, needs someone to hide behind, someone who is now totally expendable.

This may not have been Grigson’s only calculus, however. The suspicion is Trinity used this occasion to cleanse its Augean Stables. We’re still waiting to hear the full unexpurgated version of former Mirror editor Piers Morgan’s flirtatious relationship with the truth about phone-hacking, but last week moved a little closer to full disclosure with Jeremy Paxman’s testimony to the Leveson Inquiry. Wallace and Weaver were both later contemporaries of Morgan, who stepped down from the Mirror in 2004. Like two Wise Monkeys, they have joined Morgan in a deaf-and-dumb denial of complicity in phone-hacking culture. Which – who knows? – may be entirely justified. But just in case, why not get rid of them at this opportune moment? They are, in any case, very expensive; and they were, no doubt, utterly opposed to the concept of sacrificing one of their editorships on the altar of a 7-day newspaper.

And yet the real casualty here is the brand. Sunday newspapers, and not just red-top Sundays, are looking like an endangered species. Who will be next to join the 7-day bandwagon? The Independent/Independent on Sunday? The Guardian/Observer?

Sunday newspapers are being eroded not simply by shrink-fit publishing economics but by changing reading habits. After all, who these days seeks the wow-factor of a good old-fashioned scoop over their Sunday bacon and eggs?


Bailey Trinity bonanza makes Sorrell’s WPP package look like peanuts – comparatively

May 3, 2012

WPP chief executive Sir Martin Sorrell may not have been best pleased with the publication timing of the latest Sunday Times Rich List.

Just as the awkward information trickled out that he had taken a 60% rise in pay and bonuses last year (£6.18m in 2011, as opposed to £4.2m in 2010), up popped the unhelpful information – tricked out in headline bold – that Sir Martin is the UK’s wealthiest advertising mogul, with a fortune of £174m (up from £148m the previous year) and a personal stake in WPP worth £156m.

A red rag to a bull, you might say. Some of WPP’s shareholders are becoming increasingly cantankerous about such generous settlements, as last year’s hullabaloo at the annual general meeting all too clearly demonstrated. This year’s AGM in June promises similar excitement.

However, Jeffrey Rosen, chairman of WPP’s remuneration committee, can rest easy in his bed. Shareholders, no matter how vociferous, haven’t a prayer of overturning the pay agreement. Sorrell may have an uncomfortable 15 minutes caught in some headline crossfire, but he can adduce powerful arguments he has deserved well of his shareholders. Look at the underlying performance of the company; the bonus element which is in any case increasingly linked to the share price; and – crushing final point – what would shareholders actually do without him?

Alas, Rosen’s oppo over at Trinity Mirror, Jane Lighting – who once headed Five – can expect no such easy ride. Shareholders are baying for her blood after she waved through Trinity chief executive Sly Bailey’s £1.7m pay package, apparently without a murmur of protest.

Why the fuss? After all, £1.7m is financial foothill stuff compared with Sorrell’s £6.18m. But then Sorrell – unlike Bailey – has built a £10.67bn world-leading marcoms business. And  – again unlike Bailey – he has not presided over the systematic destruction of shareholder value these past 9 years.

When in 2003 Bailey joined Trinity, publisher of The Mirror, The People and sundry local newspapers, it was valued at £1.1bn. Today, that valuation is near £84m and dwindling fast. Trinity has not paid a dividend since 2008, and its pension liabilities of £1.7bn now dwarf market capitalisation.

Personally blaming Bailey for the destruction of Trinity would be a bit like blaming Canute for the tide coming in. All said and done, it’s the internet wot done it; and no one else in the newspaper publishing sector has successfully outflanked its effects. But paying her a near-FTSE100 wedge for running a small cap company looks increasingly absurd. All the more so since Bailey has no identifiable long-term solution to Trinity’s plight.

It’s time to move on Sly, maybe to some non-exec roles. I’m sure you’ll be a lot tougher on pay deals than Lighting.

UPDATE 4/5/2012: SLY TAKES THE HINT AND RESIGNS SHOCK! Bailey handed in her notice shortly after share-trading closed last night, once it became clear she faced an unquellable revolt over her pay deal from at least 25% of Trinity’s shareholders. Interestingly, prime among the rebels was Aviva, which is experiencing internal sedition over its own chief executive’s handsome package. It seems Bailey will not exactly be missed by her staff, who have in recent times endured massive cuts to editorial budgets. A journalist at the Liverpool Echo, one of Trinity’s regional newspapers, is reported to have said: “Every time her bonuses were going up we were losing people from the newsroom. We called her the wicked witch of the south.” Apparently, unrestrained whoops and guffaws were to be heard in the Mirror’s offices after the news broke that she was leaving.


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