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TROUBLE AT THE L.A. TIMES

December 16, 1999
Profit and Loss

 


Media correspondent Terence Smith reports on a revenue-sharing arrangement between the Los Angeles Times and the Staples Center sports arena that has put the executive leadership and the newsroom on opposite teams.

Here, Smith interviews the Times' reader representative, Narda Zaccino.

The NewsHour Media Unit is funded by a grant from the Pew Charitable Trusts.

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Nov. 12, 1999:
CBS hands over an interview with a criminal defendant.

Oct. 19, 1999:
The media battle over a critical "20/20" report

July 20, 1999:
Public broadcasting investigated

June 23, 1999:
The dangers of predictive journalism

April 30, 1999:
The dangers of live coverage reporting

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TERENCE SMITH: Tell me a little bit about the role of this newspaper in this city.

NARDA ZACCINO: Well, I think the L.A. Times has always been important in the city of Los Angeles, and the fact that we are the newspaper in Los Angeles makes us even more important.

L.A. Times newsroomLos Angeles has changed a lot over the 30 years. It's become much more diverse. We have a lot of different communities here, and I think the Los Angeles Times, one of the reasons that it's so important is that it is the link to all of these communities. It really bridges the Latino community, the Asian community, the African American community, and we are, you know, kind of -- I don't want to say the voice for the community because that would be arrogant, but we do try to communicate with all of these different communities within Los Angeles, and we are the bridge. And I think that's one reason why we are very important in the city.

 
The Times: A hometown institution

TERENCE SMITH: And this paper was part and parcel of the development of the city. I mean, this paper grew as this city grew.

NARDA ZACCINO: Mm-hmm. That's true, and the paper's also changed a lot over time. I've been here almost 30 years, and it was quite a different paper before I came. It was very conservative. It was very, you know, anti-labor in the news pages. It was very much a very different newspaper.

And that changed over time, and the newspaper that I came to nearly 30 years ago in 1970 was -- was different, but it has changed. I mean, even then, I had -- there were a lot of problems with it. There were no minorities on the staff. There were no women on the staff, virtually none. So the newspaper has really changed. The composition of the staff has changed. The editorial policy has changed. Our coverage has changed ... with the city, with the county.

TERENCE SMITH: I'm struck by the fact that you sit right in the heart of downtown, you're literally across the street from city hall. I mean, it suggests something.

NARDA ZACCINO: Well, this is -- this is the heart of Los Angeles, and this building has been here for -- for decades. There was a time, though, when we were actually considering moving from this location because this building, being as old as it is, had a lot of problems with the air conditioning and the heating and all of this. So -- and we were facing a lot of repairs, costly repairs. And we were actually talking about moving.

And people -- I mean, our public television station got involved. They did a show right outside the building, and, you know, the idea that we would move from this location was horrific to some people. We ended up changing those plans, deciding to stay here, deciding that we were -- it was important for us to stay here. It was a symbolic thing. And so we did.

 
Readers understood the controversy

TERENCE SMITH: And it's that centrality of the Los Angeles Times in Los Angeles that makes the credibility of the paper and controversies around it, it seems to me, even more important.

NARDA ZAQUINO: Well, that's true. Our readers -- and that is my main responsibility right now, is maintaining a dialogue with the readers and addressing their concerns, and also explaining our journalism to them, kind of demystifying journalism as -- if you will, in the column that I write.

But our readers, I quickly found out, really feel an ownership in this newspaper. They're not just readers. They're not just consumers. They don't just buy this newspaper or this product. They feel an ownership in it. And I think, you know, that's why when we make mistakes, they really want to call us on it. That's why they feel when we do something -- when we win prizes, they feel pride and that sort of thing because they really do feel that this is their newspaper. And I think they should.

TERENCE SMITH: What kind of reaction have you seen coming from readers on the Staples incident?

NARDA ZAQUINO: The reaction was -- was slow in the beginning to come, and then -- then it was much more intense. We've gotten over 200 calls and letters. My office -- the readers' representative office -- gathers the e-mail, faxes, letters and phone calls that come to us, but we also compile from what comes into the Letters to the Editor page. I don't mean that we compile it, but we track it so that we have a good sense of the letters that come into all the sections.

So, for on Staples, for example, we got a lot of mail into this office, and phone calls. We also track the letters to the editor, and we track the letters to the magazine. We put it all together, and if you ask me what readers are saying about it --

TERENCE SMITH: Yeah, what was the gist of those 200-plus --

NARDA ZAQUINO: Well, the readers were, first of all, very smart about what it was all about.

TERENCE SMITH: They got it?

NARDA ZAQUINO: They got it. They -- for the most -- there were some, you know, just kind of crazy, you know, very nasty, very mean letters. But for the most part, the readers understood the credibility issues. They understood the integrity issues. And some of them said -- a number of them said, 'OK, I'm glad you apologized, you know, what you did was wrong, it was smart to own up to it, let's move on.'

A lot of people were -- felt that -- the thing that was most disturbing to me, I guess, is that a number of people felt that this called into question a lot of what we do. If we didn't cover a story, they say, 'You didn't cover that -- did you not cover that because an advertiser didn't want you to cover it? Or did you cover something because an advertiser -- you know, you have a deal with an advertiser.'

And there were some who have subscribed for a long time who -- you know, these are very -- a lot of these were very loyal readers who just said, 'Can I trust the L.A. Times?'

Well, yes, I think now, especially, they can trust the Los Angeles Times, and part of my -- I wrote a column where I explained how it happened to readers. I explained that the magazine was -- in fact, as Kathryn Downing said in the story in the Los Angeles Times, and Michael Parks affirmed -- was, in fact, intact. Its integrity was intact, because they didn't know about the arrangement of profit sharing.

And I think readers appreciated hearing that, and I think that all we can do from this point on is go forward and do the good journalism that we do, and if questions come up, we address them, and we just -- we move on.

 
It's v ery easy to second-guess

TERENCE SMITH: Of course, it was that very fact that they didn't know about the revenue-sharing arrangement that has so incensed many of the journalists in this paper.

NARDA ZACCINO: That's true. I -- I deal with readers, and I -- and that's what my -- my orientation is readers, and I -- and readers understood that, too.

TERENCE SMITH: What about you? What did you -- were you bothered by this arrangement?

NARDA ZACCINO: Sure. I was bothered, yeah. I'm a journalist. I was bothered by it.

TERENCE SMITH: What bothered you about it?

NARDA ZACCINO: The fact that we shared the revenue, which we had never done before; the fact that editorial people didn't know about it; the fact that I knew I'd be getting a lot of calls and letters and e-mail about it and would have to explain it; and -- just, you know, obviously -- obviously it was -- as Kathryn Downing recognized when she apologized for it, it was a -- a transgression and a breach of - -of ethics, and so --

TERENCE SMITH: Some editors knew beforehand, before it hit the streets, anyway, about this arrangement. Should something have been put in the paper to disclaim or explain the arrangement?

NARDA ZACCINO: I think it's very easy to Monday morning quarterback on this issue, and, yes, I think -- yes, obviously, ... it would have been preferable in the first place not to have done it. Second place, having done it, it would have been preferable to tell the staff and tell our readers that -- that we had done this, yes. We didn't do that, and, yeah, I think we should have.

TERENCE SMITH: Did you --

NARDA ZACCINO: And Michael Parks I think would -- would think -- would say that, too.

TERENCE SMITH: I think you're right. Did you as a vice president of the company know about it?

NARDA ZACCINO: No, but I wouldn't know about it. I mean, it wouldn't have been important for me to know about it. It would have been important for the people working on the magazine, for the editor to know about it.

TERENCE SMITH: Alice Short certainly thought it would have been important --

NARDA ZACCINO: Uh-huh.

TERENCE SMITH: -- for her to know about it. This whole philosophy that Mark Willes has -- has espoused vigorously since arriving here four and a half years ago of breaking down the famous wall between the business and editorial sides, of increasing communication between those two sides in order to increase revenues and make -- put the paper on a firmer financial footing -- what effect from your point of view, from a journalist's point of view, has that had on this paper?

 
A lower wall between editorial and ads  

NARDA ZACCINO: Well, that's a very good question, and I can answer it from someone who's been here for 30 years. And let me also say that I have been a reporter, and I have been -- I've overseen all the feature sections here, and I've overseen all the regional editions over the course of that time. I've been a bureau chief in Sacramento. I have a lot of experience.

I think that the wall between -- when I first started in this business and at this newspaper, there was a very high wall between editorial and advertising that was never breached. I mean, we didn't even go on each other's floors. We didn't talk to each other in the lunch room. We didn't -- there was no conversation.

I would agree with Mark Willes that -- that some creative ideas can come from business people. When I became editor of the Orange County edition, for example, I talked a lot with the advertising people about doing sections. You know, we would want to do a section -- prep sports. We knew the Register, our competitor, was going to have a section on prep sports when football season started. We wanted to have one. We would talk about issues like that, and we would try to work together. We never shared story ideas, which would be just verboten. That would be a terrible breach of etiquette and of ethics.

I think that some of the convers -- there's nothing wrong with conversation if -- if you don't -- as long as there's no interference, as long as editorial has the final say on everything, on creating new sections, on story ideas, on -- I mean, there should be no conversations about -- let me -- let me back up.

TERENCE SMITH: Sure.

NARDA ZACCINO: There should be no conversations from -- generated by advertising about we want you guys to do a certain story or we want you to do a certain section, we have advertisers who want it. That should not happen.

But at the same time, this is a business and I recognize that, and I think that that has been a realization that has come to a lot of people -- I mean, I know, and we all know here, that it's advertising that supports the newspaper. I would love to have more advertising in the Book Review, for example. It would be nice to have more ads so we could have more space for our stories. I think a lot of editors feel that way. It would be nice if our advertising department would sell more ads. It's not nice if they want to tell us what stories to have so that they can sell more ads or have us give them a story list, for example.

Now, none of that happens. None of that goes on. And so I feel confident that this was a real aberration. This was something that happened that we all wish would not have happened. But I think that conversation can take place.
I do think, also, though, that there has to be -- there has to be a wall that you don't -- I mean, whether it's this high or how high it is, but there has to be an understanding that the most important thing is the integrity and the credibility of the newspaper. And there has to be -- there have to be guardians of that integrity and credibility at this newspaper. The top guardian has to be the publisher. The editor has to be a guardian of that. If we lose credibility and integrity with our readers, then we've lost everything.

TERENCE SMITH: You know, that scenario you just described of advertising people contacting editors, section chiefs and the like, and suggesting specific stories and saying, you know, we can sell ads around -- on that theme or on that subject, that, based on my reporting, does happen.

NARDA ZACCINO: Well, let me -- let me put it this way: I think that if the reader is paramount and what serves the reader is what is at the fore of everything we do, then we'll be fine.

For example, let me give you an example. Let's say that we want to do a bride -- a section for brides. OK. And the advertising people talk to the editorial people or the editorial people talk to the advertising people and say we want to do a section on brides, June is the biggest month for brides, that means, you know, dresses are bought in -- the biggest retail month is February or March, whatever it is. It's actually probably earlier, but -- and so let's do a section then for brides.

Well, I would say I think that would be of interest to readers. In fact, I proposed this section at one point when I was over the feature sections. And ... we did several of them because they were very successful with readers.

Now, my point is, yeah, you ... if you want to do a special section for brides and you're going to have stories on, you know ... what the big trends are or what dresses are looking like ... you also want in that section ads that the reader is going to want. If I'm getting married, I'm going to want to see ads in that section that are, you know, places I can buy flowers, places that I can -- that can do my catering, stuff like that. You don't want dog food ads or motorcycle ads in that section. You want ads that are of that -- on that theme. So if an advertising person would come to me and say, Can you do a section on brides? I'd say, 'Hey, that's a good idea.'

 
  Credibility damaged  
 

TERENCE SMITH: Had the credibility of this newspaper been damaged?

NARDA ZACCINO: Of course it has. Of course it has. And -- and that's why I would like to -- I mean, all of us here really want to move on ...

TERENCE SMITH: I was talking about whether the credibility had been damaged. You said yes, of course it had. I think the question -- the next logical question is: 'What does it take to get it back, that credibility?'

NARDA ZACCINO: Oh, I think we need to move on from here. I think we need to await David Shaw's article -- I think that's very important. It's important to the people who work here, and I think it's important to our readers because they seemed -- in the mail that I got and the phone calls, they seemed impressed that we were -- had assigned our Pulitzer Prize-winning media critic, who, by the way, won the Pulitzer for a story he wrote that was highly critical of our coverage of the McMartin preschool scandal. And that story left us wide open for criticism, and he won the Pulitzer for it. I really trust his reporting and his -- his integrity. And I think that it's important to wait for that ... I think that that's really important for the closure of this--of this situation.

But, you know, I want to ask you something. I mean, you asked me a moment ago about the -- you know, how the newspaper has changed and how Mark Willes' comments about knocking down the wall between advertising and editorial, and I think that you really need to look at what's happening to all the media in America.

For example, I think there has been a lot of interest -- I mean, you're here talking to us here at the paper. You're interested in this story. I know the New York Times had an editorial. I heard from colleagues at other newspapers. My column was sent to their publishers. It was -- you know, stories about what happened here were sent to the publishers and editors of other newspapers --

 
  Merging two schools of thought  
 

TERENCE SMITH: You're suggesting, therefore, I think, that this problem isn't unique here.

NARDA ZACCINO: I -- that's right. That --

TERENCE SMITH: -- the specifics may be unique.

NARDA ZACCINO: I am suggesting that. I'm suggesting that if you look at the New York Times, for example, you see an auto section, OK? You see cars and driving and that -- and you see ads for ... automobile accessories and cars and what-not. Clearly someone's talking to someone there. I mean --

TERENCE SMITH: But they don't split the profits from the ads.

NARDA ZACCINO: Well, no, I -- no, they don't, and we never have, and I am sure we never will again.

TERENCE SMITH: That's the difference. That's the difference. ...

TERENCE SMITH: I mean, I've heard Mark Willes on -- I heard him speak on the subject about how, in his view, the editor of a section ought to be thinking about the revenue it can bring in and the bottom line and what it can do to help the bottom line. Should that editor be thinking about that?

NARDA ZACCINO: I see it a little differently. I see it as an editor's desire to get more advertising into his or her section so that there can be more space for more stories. And I bring up the Book Review as an example or the Southern California Living section, our feature section, our metro section, our local news section. Yeah, if we had more space, we could have more stories. We could have more book reviews on Sunday or more feature stories or more local news space.

And so I don't see it as editors are necessarily thinking about bringing more money into the paper. I see it as editors thinking about, you know, 'Gee, you know, in the Book Review how come we're not selling -- we just go after publishers, and publishers don't have as much money to advertise. Why don't we look at Mont Blanc pens or, you know, some other' ... but, also there has been a feeling that -- amongst some editors that -- whose sections are not filled with ads that, you know, maybe they can come up with ideas for different advertisers to go to.

The food section is an example. The food section has grocery stores. … I mean, I happily went to advertising and said, 'Why don't you go to some of the retail department stores and get them, you know, pots and pans and housewares and things ... you use if you're cooking? Why don't you get some of that in there?

I don't see anything wrong with that. I do think that editors should not have to think about their survival of their section. I don't think they should have to think about, 'Gee, if I don't get out there and actively try to bring in more revenue, my section's going to die.' I don't think that should be the case. But I don't see anything wrong with an editor saying, 'Why don't you guys try to sell this or try to sell that?'

 
  Moving on  
 

TERENCE SMITH: What I guess remains to be seen is -- is how you move on, how you persuade the reader that next week's edition of the magazine or the next special edition of the magazine is not a -- not what the Staples issue was.

NARDA ZACCINO: I find this a very exciting time in a way because, first of all, journalists were so exercised about protecting our integrity and our credibility. People on the business side, too, understand that, especially understand it now. Now there is great clarity.

If when Mark said he was going to tear down the walls there was anxiety and there was questioning and everything, I think that is erased now. In my opinion, there is great clarity about the role of editorial and the role of advertising. There is great clarity about what we're going to do in the future if there's ever any question. Editorial is drafting guidelines. The masthead editors -- and I'm in that group -- we're drafting guidelines that will be followed, that will be implemented by Kathryn and will be followed by people on the business side. The article is being written.
I think there's a lot of positive things to say. Yes, it's terrible that this happened. But going forward now, I think it's -- in a way, it had to happen -- in a way.

TERENCE SMITH: One final thing that I didn't ask you about and I probably should have because you've been here during his reign as publisher, and that was the statement, really quite blistering statement, from Otis Chandler. What did you think of that?

NARDA ZACCINO: What did I think of it? It was very dramatic. It was -- I think Otis was saying something that people wanted someone to say. People in the city room wanted, I think, someone to say they had been doing a great job and that they had been -- that our credibility had been hurt. And I think that's why they welcomed him saying it.

I know that the reader respo -- reader reaction really picked up after Otis' comments. I think that readers -- Otis Chandler enjoys a very -- is something of an icon in the city room, and I was a little surprised at how much -- how revered he was in the community because a lot of the mail we got was from people saying -- you know, recalling the days when he was publisher.

TERENCE SMITH: In fact, his picture is posted all around the newsroom.

NARDA ZACCINO: I know.

TERENCE SMITH: Like a pin-up.

NARDA ZACCINO: I know that. I know. And I can understand why that is. I also think that it's really -- as I said, I keep saying it's really important to move forward. I think that what the newsroom wants desperately is for a clear definition of roles, advertising and editorial, a clear statement that this will never happen again, that this -- that the environment will be such that it can never happen again. And once that -- once that happens, once the story comes out and that clears the air -- and there's nervousness about that. I'm sure there's nervousness all over the building about that story, you know, what is it going to say? You know -- that's very important. That step is really important for closure.

... I care most about the readers. I care about my colleagues in the newsroom, but they'll survive. I care about the readers and about our integrity. And I think that all we can do is, when the story comes out, when we -- we're going to publish our guidelines, and I'm sure I'll write a column about it -- that all we can do is put out, continue to put out a great newspaper.

You know, frankly, I mean, we've been spending a lot of time doing interviews with people from other media about this incident, and it would be great to just get it behind us. And the only way we're going to rebuild our credibility with the readers is if we put out -- do our -- the great journalism that we're known for and do our work in a solid way and, as I said, answer -- honestly answer questions when they arise and honestly correct our errors when we make them, and that's how we -- that's the only thing we can do.

TERENCE SMITH: That's great.

NARDA ZACCINO: Good.

TERENCE SMITH: Thank you.

 



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