The Indianapolis Star is still the state’s flagship news operation. Its coverage of local news, sports and community events remains unmatched. In many ways, The Star sets the agenda for news operations across the state.
But The Star’s ability to fulfill its important role is threatened, even though the newspaper remains profitable.
That’s because Gannett, The Star’s corporate owner, continues to siphon profits away from the newspaper and demand more cutbacks.
In the past two years, The Star’s newsroom staff has been slashed by 36 percent. Vacant jobs almost never get filled. With pay lagging behind 94 other union newspapers around the country, talented journalists keep moving on. The Star’s management does nothing to stop this, but instead simply says thank you for reducing the payroll. There’s even a plan in the works to outsource some jobs in The Star’s newsroom to Kentucky. It’s why The New York Times called Gannett “a high achiever in downsizing.”
The result of all this means that readers get less local news and less coverage of important issues. The newspaper’s ability to fulfill its traditional watchdog role is endangered.
Yes, the news industry is changing. But Gannett earned $588 million last year. And recent estimates suggest that Gannett’s profit margins are anywhere between 15 and 20 percent, high enough to be envied by most industries. The Star’s margins may be even higher.
So, if The Star’s profits aren’t staying in Indianapolis, where are they going? A big chunk of them is going to pay the corporate brass in Virginia.
Last year alone, six corporate executives in Virginia received hefty new pay packages worth up to $28 million. Gannett CEO Craig Dubow saw his pay doubled.
What is the biggest threat to The Star?
The answer is simple: greed.
