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* Robert Feder…
No one’s supposed to know it, but the parent companies of the Chicago Tribune and the Sun-Times are on a collision course over unpaid bills.
At issue are the $70 million-a-year contracts for Tribune Co. to print and distribute the Sun-Times and its suburban daily newspapers. (The distribution deal began in 2007, and the printing deal began in 2011.) Just as Tribune Co. was emerging from bankruptcy at the end of December, Sun-Times owner Wrapports LLC paid only a fraction of what it owed, according to sources at both companies.
Since then, nothing. Some see it as a sign of financial trouble at Wrapports, where advertising revenues have fallen far short of projections. Others see it as a strategic move to force a renegotiation of the agreement or as a precursor to a bid for the Tribune.
Fearing that Tribune Co. could simply pull the plug, Wrapports has begun searching for alternate printing facilities. (Just a bluff? Who knows?) On the other hand, Wrapports chairman Michael Ferro appears to be gambling that the Tribune won’t put its No. 1 client out of business while it’s trying to attract a potential buyer. In the end, it all may wind up in court — if not on the front pages of both papers.
Oy.
posted by Rich Miller
Thursday, Mar 21, 13 @ 9:58 am
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Isn’t Bruce Rauner a big part owner now of the Sun-Times? Or at least his investment group.
Comment by just sayin' Thursday, Mar 21, 13 @ 10:30 am
Cutting off a client that’s not paying ANY of it’s bill? That doesn’t seem like a hard decision. Sun Times can’t find distribution overnight.
Comment by Downstate Thursday, Mar 21, 13 @ 10:38 am
Sun Times and Tribune in cahoots together? This is a worse feeling than when I learned my favorite pro wrestler was really friends with his supposed arch nemisis. I also learned of that in the past week.
So next time ST tries to report on ethical issue sof anyone, this should b ethrown back intheir faces.
Comment by Wumpus Thursday, Mar 21, 13 @ 10:39 am
“Never extend credit to someone who buys ink by the barrel.” — Mark Twain (attributed)
Comment by MrJM Thursday, Mar 21, 13 @ 10:42 am
Wumpus, you made me laugh out loud. BTW, who are the two wrestlers?
Comment by I don't want to live in Teabagistan Thursday, Mar 21, 13 @ 10:43 am
Stay classy, CapFax, quoting an entire scoop with a tiny link that doesn’t mention the outlet that paid the reporter.
What would you do if the tribune or suntimes - assuming they’re solvent - quoted a few hundred words from you on their website with a mostly anonymous link and only a single word added?
Comment by Granite expat Thursday, Mar 21, 13 @ 11:01 am
What are you talking about Granite? This is a link to Feder’s column. If you click on the link (or have been around a while), you know Feder is published by TimeOut Chicago and is the most widely respected media reporter in Chicago by orders of magnitude.
This is a real story. Sun-Times is stiffing its printer and distributor, the Tribune. Either this means they’re dead broke (which means the talk of buying the Tribune is just a joke) or they’re deadbeats engaging in an interesting form of negotiation. Either way, it most certainly means their finances are suspect.
Comment by Chicago Cynic Thursday, Mar 21, 13 @ 11:58 am
Teabagistan, I was referencing the Iron Sheik and Hacksoaw Jim Duggan which happened years ago. I learned about it because Iron Sheik’s Twitter account is weird and hillariious.
Comment by Wumpus Thursday, Mar 21, 13 @ 12:00 pm
Ferro is an amateur. Has no idea what he’s doing. Sad.
Comment by Reo Symes, M.D. Thursday, Mar 21, 13 @ 12:09 pm
When I was in private practice there was no such thing as a #1 customer who wasn’t paying his bills. Such an entity was either a former #1 customer or a current charity case
Comment by titan Thursday, Mar 21, 13 @ 12:11 pm
===quoting an entire scoop with a tiny link that doesn’t mention the outlet that paid the reporter. ===
It was one paragraph in a very long post. I broke it up into multiple grafs.
As for the rest, bite me. Feder is bigger than any outlet he works for.
Comment by Rich Miller Thursday, Mar 21, 13 @ 12:12 pm
Ferro and the Mesirow boys are ok money managers at best. This game is wrestling about three classes above their weight, if you will.
Comment by Arthur Andersen Thursday, Mar 21, 13 @ 12:19 pm
I think we can all agree the biggest news in this thread is that THE IRON SHEIK IS ON TWITTER.
Thank you, Wumpus. That just changed my life.
Comment by Formerly Known As... Thursday, Mar 21, 13 @ 4:32 pm
Can’t lose the Sun Times. Just can’t. See their report today on the $58MM award city taxpayers will be funding for Daley’s parking deal fiasco?
Didn’t see that in the Trib.
Comment by park Thursday, Mar 21, 13 @ 6:38 pm
The sun times are trying to get out of their commitment, they will file for bankruptcy and do their usual under the table deal. Will emerge under a different name.
Comment by groundpounder Wednesday, Mar 27, 13 @ 7:05 pm