A deal reached last fall between Salt Lake City’s two main newspapers has sparked controversy as the Justice Department investigates allegations that the Salt Lake Tribune is ceding market share to the Church of Jesus Christ of Latter-day Saints-owned Deseret News. The amendment to a long-standing Joint Operating Agreement involves an undisclosed lump-sum cash payment in exchange for the Deseret News receiving 70 percent of print revenues generated by both papers.
Critics, including Utah State Senator Jim Dabakis, claim the deal benefits Digital First Media, a New York parent company owned by the hedge fund Alden Global Capital, while potentially depriving the Tribune newsroom of necessary revenue. Senator Dabakis recently started an online petition requesting that the Justice Department reverse the agreement, suggesting the deal allows the Deseret News to achieve a monopoly.
Joan O’Brien, a former Tribune reporter and leader of the Utah Newspaper Project, has filed a detailed letter with the Justice Department. She expressed concerns that the pact will cripple the Tribune and increase the media monopoly power of the Church of Jesus Christ of Latter-day Saints in Northern Utah. The Utah Newspaper Project includes approximately 50 members, many of whom are former Tribune staffers.
In response to the controversy, executives from both organizations have rejected claims that the agreement undermines the Tribune. John Paton, chief executive of Digital First, stated that the revisions are intended to support the Tribune's continued success and manage legacy costs. Clark Gilbert, chief executive of the Deseret News’ parent company, noted that the deal includes benefits for the Tribune, such as no rent payments for the use of certain plants and presses.
The dispute is rooted in a long history of competition between the two papers dating back to 1873. While the newspapers have shared business costs under a Joint Operating Agreement since the 1950s, the Tribune has traditionally received a larger share of revenues. Terry Orme, the editor and publisher of the Tribune, expressed concerns regarding the impact of the reduced print revenue stream, noting that print remains a significant source of income for the publication.
