Five California diocesan papers break with
Catholic Press Assn.
By JOHN L. ALLEN JR.
NCR Staff
Five Catholic newspapers in California have withheld their dues
from the Catholic Press Association this year, charging mismanagement of the
organization's advertising network, poor member services and a bias that favors
East Coast papers.
In withholding their dues, the papers have effectively withdrawn
from the CPA, a service organization that represents 167 local diocesan papers
plus 13 Eastern rite and five national papers. It is headquartered in
Ronkonkoma, N.Y.
The defectors include The Tidings, the paper of the Los
Angeles archdiocese, the largest diocese in the country; The Inland
Catholic in San Bernadino; The Catholic Voice in Oakland; The
Valley Catholic in San Jose; and The Catholic Herald in Sacramento.
Together the papers have a combined circulation of 221,000, based on figures in
the 1997 Catholic Press Directory.
Perhaps the most vexing issue for the California papers centers on
the Catholic Advertising Network -- CAN -- which is owned and operated by the
association. CAN solicits advertising from national clients on behalf of local
papers.
The California editors argue that the commissions charged by CAN
have been too high, forcing them to inflate their own advertising prices, and
that profits generated by CAN serve primarily to line the press association's
coffers.
"[CAN] is about how the CPA can make more money, not about how it
can help Catholic papers," said Tim Holden, business and marketing director for
both The Catholic Voice and The Catholic Herald. "It's about
benefiting a few individuals at the expense of the members."
"That's just blatantly wrong," said Owen McGovern, executive
director of CPA. He argued that the association has not even recovered its
original investment in CAN. Moreover, the network's purpose is "to serve the
members," McGovern said, "not to enrich CPA."
In fact, McGovern claimed that since CPA and CAN are legally
separate entities, the network "does not generate a dime" for CPA.
Nevertheless, he acknowledged that he serves as president of CAN, that CAN is
operated out of the press association's offices and that CAN has reimbursed CPA
for some expenses. McGovern said he couldn't supply a specific figure for how
much advertising income the network has generated to date, but said "it hasn't
taken in a lot of money."
Until May of this year, whenever CAN sold an ad the local paper
paid a sales commission of 15 percent as well as a 15 percent commission for
administration. If an advertising agency placed the order, the paper also paid
15 percent to cover that agency's commission. Since CAN's contract specifies
that papers must give the network their guaranteed minimum rate for advertising
space, many papers were forced to mark up their rates for all advertisers,
sometimes by as much as 35 or 40 percent.
In a letter dated Nov. 22, 1996, the editors of the California
papers argued that CAN's commissions amounted to "excessive overcharging" and
were arguably illegal as a form of price-fixing under federal
restraint-of-trade laws.
At the national CPA convention in Denver in May, CAN unveiled a
new policy on commissions. It now charges a 15 percent total commission to
for-profit papers and 10 percent to nonprofit. "This makes us among the lowest
around," McGovern said. McGovern said these changes were already "in the works"
at the time of a February meeting in Oakland to air the editors' concerns.
"Twenty years from now when CAN is a tremendous success, our
members won't even remember this struggle," said Christopher Gunty, CPA
president and editor of The Catholic Sun in Phoenix.
The commissions might be worth it, said Julie Sly, editor of
The Catholic Herald, if CAN brought in a higher volume of ads. "They
don't generate enough ads to justify what they're charging," she said. Sly
added that she was also irked by the CAN advertising agreement, which asks
papers to sign over exclusive rights to solicit national advertising.
Holden argued that CAN sales patterns reflect a regional bias.
"Most of the ads they sell run in the East Coast papers," he said. "It reflects
the CPA's East Coast orientation."
"That's probably close to being accurate," said Gunty. "This is
something I've been concerned about for years. ... It's hard to convince a New
York agency that California or Arizona is the best place to spend their money,"
he said, adding that he hopes CAN will add a full-time sales representative in
the West.
Instead of sales help, however, the California papers said that
what they really need is assistance in marketing strategy. "When I talk to
potential clients, they have no idea what a Catholic newspaper is, that they
even exist," Holden said. "CAN needs to lead us in raising the visibility of
the Catholic press, which doesn't mean you have to have salesmen in the field,"
he said.
McGovern countered that most Catholic papers rely on CAN to tap
the national market. "If [the California papers] think they can go around the
country and solicit their own ads, good luck to them," he said. "This isn't
what I hear from most of our members."
The editors of the five California papers also criticized CPA for
the poor quality of national and regional meetings. "From an editorial point of
view, there's almost nothing for us there," Sly said, arguing that conventions
generally offer basic writing, layout and photography sessions of limited
utility to editors. She also said information about the conventions was not
communicated quickly enough to members.
"Maybe it's time to recognize that local staffs don't usually have
the capacity to take on a national convention," Sly said, referring to the CPA
practice of relying upon the host newspaper to make most of the conference
arrangements. Sly said that the California editors plan to hold workshops
tailored for their own needs and possibly to attend Society for Professional
Journalists events.
"All I can say is that the Denver convention had a 95 percent
approval rating," McGovern said. "I was told several times -- in fact, I was
told just today -- that it was the best convention ever," he said.
"I think there's a lot of depth at the conventions," Gunty said.
"We do a good job of offering something for everyone, both in terms of issues
and process."
The California group also raised concerns about the speed with
which CPA notified them of important matters such as changes in postal rates.
In an Aug. 1 letter to the California editors, Gunty acknowledged the
legitimacy of such concerns, promising to rely more on fax and E-mail to
disseminate information.
Finally, the editors said CPA should do more to facilitate
relationships among member papers and the National Conference of Catholic
Bishops. In his letter, Gunty said he did some "nonchalant lobbying" at
bishops' meetings, taking the form of comments such as, "Bishop Smith, I'm glad
to see you. You've got a great newspaper there in the diocese of
Flagstaff."
"I personally wouldn't want him [Gunty] approaching my bishop,"
Sly said. "I wouldn't know what the point of that was." Instead, she said CPA
should involve the bishops and editors in "serious dialogue" about the role and
function of diocesan newspapers.
Gunty argued that the primary burden for such communication should
fall on the local editor. "We can do as much as we want to on the national
level to get bishops and editors to listen to each other," he said, "but it
won't matter if the local editor doesn't have a good relationship with that
bishop."
Tod Tamberg, editor of The Tidings, said CPA's regional
bias in favor of the East Coast is reflected in its ignorance of trends facing
newspapers in the West. "They don't understand the pressures we face toward
regionalization," he said. "They're unaware of the cooperative advertising
arrangements we're evolving."
Sly said the withdrawal of the California papers is not a
once-and-for-all maneuver. "We're taking a wait and see stance," she said. "If
at some point CPA responds to our concerns, we're willing to reconsider."
"We always take member concerns seriously," McGovern said. "Maybe
we can't meet all of their concerns, but I think we've shown a lot of
improvement."
Tamberg, however, was not hopeful about the prospects of a
rapprochement. He noted that at the very time the five California papers were
involved in negotiations with CPA over their future as members, they were
receiving nasty notes from the organization's business office demanding that
their dues be paid up. "It does make you wonder," Tamberg said.
National Catholic Reporter, August 29,
1997
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