It’s no secret that the the Boston Globe is facing some tough financial realities. It had already been reported that the paper was losing about $1 million a week, and its parent company, The New York Times Co., is even mulling subscription fees as a potential survival tool.
Over the weekend the Globe took one step closer to their worst-case-scenario when a front-page story in Saturday’s paper announced that the New York Times Co. has threatened to shut down the Globe unless the paper quickly agree to $20 million in concessions.
In 2008 the Times Co. posted a net loss of $57.8 million, and the Globe is expected to lose $85 million in 2009 (after losing $50 in 2008). The Globe has further details:
The Times Co. is seeking concessions from the unions because the New York company, which is also suffering from the recession, can no longer subsidize the Globe’s losses, said the Globe employee who is not authorized to speak publicly and requested anonymity.
So what will happen to the Globe? Boston would be a strange place without the paper, which is the 14th largest paper in the country and was first published on March 4, 1872. It clearly needs a major overhaul to become profitable, and Boston.com will be a key part to its survival.
Massachusetts Governor Deval Patrick told the paper, “I believe in good government, and I believe good government depends on a strong paper, and the Globe has served that role in Massachusetts for a long time. It’s hard to imagine starting the day or doing this current job without the Globe.”