Post by Entire Lynett Family on Nov 2, 2011 10:01:56 GMT -5
Speaking of running the company: Connor’s competition in Pennsylvania, the Scranton-based Citizens’ Voice, did as fine job reporting on his ouster, including uncovering a revealing fact about the business arrangement between Connor’s companies in Maine and the Keystone State. According to Voice staff writers Boris Krawczeniuk and Erin Nissley, the two operations have “shared resources since 2009.”
Some of that has been public for a long time. Both chains are partially owned by HM Capital Partners LLC, a private equity company based in Dallas. In addition to Connor, they shared other top executives and a Washington correspondent.
But there’s more, according to the Voice: “Almost immediately after the Maine purchase, the two organizations began to share resources, even though they are separate corporate entities. The Maine newspapers paid a management fee to the Wilkes-Barre Publishing Co., The Times Leader's owner.”
That seems significant, because according to sources inside and outside of the company one of the reasons for Connor’s ouster was the way expenses were allocated between the two companies, with some MaineToday board members charging that their company was covering costs that should have been charged to the Pennsylvania operation.
There’s some indication that the management overlap and the fee payments made it more difficult to monitor the financial transactions within Connor’s media empire.
Some of that has been public for a long time. Both chains are partially owned by HM Capital Partners LLC, a private equity company based in Dallas. In addition to Connor, they shared other top executives and a Washington correspondent.
But there’s more, according to the Voice: “Almost immediately after the Maine purchase, the two organizations began to share resources, even though they are separate corporate entities. The Maine newspapers paid a management fee to the Wilkes-Barre Publishing Co., The Times Leader's owner.”
That seems significant, because according to sources inside and outside of the company one of the reasons for Connor’s ouster was the way expenses were allocated between the two companies, with some MaineToday board members charging that their company was covering costs that should have been charged to the Pennsylvania operation.
There’s some indication that the management overlap and the fee payments made it more difficult to monitor the financial transactions within Connor’s media empire.