A "JOA" or "Joint Operating Agreement" is a form of business organization allowing competing daily newspapers in a market to each continue publishing while combining all non-editorial functions such as printing, distribution, advertising and human resources. This was a specific carve-out from federal anti-trust laws that was created nearly 40 years ago.
There were once 28 JOA's in the country; now there are only 6 overseeing two newspapers. Fort Wayne Newspapers, jointly owned by Ogden Newspapers and the Journal Gazette Company, is one of the 6.
On Saturday, the 7th JOA ended the publishing of the afternoon Tucson newspaper. However, the two owners will continue to split the revenue generated by the morning newspaper. That didn't seem kosher to the Arizona Attorney General who has sued to keep the afternoon paper publishing. This may have lessons for the future of the two newspapers in Fort Wayne.
Arthur Rotstein reported for the Association Press:
Arizona's oldest continuously published daily newspaper could get a reprieve as a federal judge considers the state attorney general's complaints that the Tucson Citizen's owner stopped publishing it simply to make more money.
A federal judge was to rule Tuesday on whether Gannett Co. must resume publication of the Citizen, even though Gannett had printed what it considered its last issue Saturday.
A partnership jointly owned by Gannett and Lee Enterprises Inc., publisher of the larger Arizona Daily Star, handled printing and other non-editorial functions for both Tucson newspapers until Saturday. Under that joint operating agreement, the two companies shared costs, profits and losses.
I work in the printing industry so I try to follow as closely as possible what the industry related media is reporting regarding press installations, plant closings, consolidations, etc. In the newspaper world new press installations have been rare in recent years. In fact, many papers are choosing to shut down their printing operations and outsource their printing to commercial printing companies. The decision by Fort Wayne Newspapers to invest in a new printing press seems to be very far outside the norm. I am proud of our newspapers and I am very hopeful the choice to buy a new press will not lead to the demise of either or both of the current publications.
Posted by: Mark Stultz | May 20, 2009 at 12:03 AM
This whole story is a bit blood-curdling.
Perhaps the State could also offer tax break on subscriptions to "The Citizen" as a charitable contribution?
Posted by: Roger McNeill | May 20, 2009 at 08:28 PM