Here is an interesting passage from today’s Las Vegas newspaper:
Nor will there be a modification of the joint operating agreement that has the Review-Journal print and distribute the Las Vegas Sun as a daily insert — a relationship that has not always been harmonious.
Sun owner Brian Greenspun sued the Review-Journal in District Court in Clark County in March, alleging that the Review-Journal improperly deducted editorial costs from profits before paying the Sun the monthly stipend that supports its newsroom operations. Greenspun said the Review-Journal shorted his paper at least $6 million in the past decade. Stephens Media filed a motion Wednesday to compel arbitration in the matter.
Kirk Davis, chief operating officer of New Media and CEO of GateHouse, said in a recent staff meeting that he’s “very eager” to meet with Sun executives.
I’ll bet the new owners of the R-J are “very eager” to meet with Sun executives, since the 6- to 10-page Sun section is an expensive albatross dragging down the paper’s profits.
I wonder how New Media Investments will calculate the Sun tax?