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 Rival co-owners George Norcross and Lewis Katz are both rich,
powerful and accustomed to being in charge. Unless they find a way
to work together, The Philadelphia Inquirer and Philadelphia Daily
News could be sold for the sixth time in seven years, or the current
ownership group could be reconfigured.
Norcross is a Democratic powerbroker in southern New Jersey who
built his wealth in the insurance industry. Katz made his fortune in
parking lots, real estate and a stint owning the New Jersey Nets.
Each pledged not to meddle in the newsroom when they bought equal 26
percent stakes of the company last year, for $16 million apiece.
Four others bought lesser stakes. But Katz and Norcross control
major decisions.
Katz sued last month, accusing Norcross of trampling his voting
rights by unilaterally firing Editor Bill Marimow. Norcross
countersued. Common Pleas Judge Patricia McInerney, after hearing
several days of testimony, did not immediately rule on Katz's
request to block the firing.
Katz and Norcross accuse each other of meddling in newsroom
operations despite a non-interference pledge they took after buying
the newspapers in April 2012. But the pledge seems almost doomed
from the start. Both powerful businessmen have close ties inside the
newsroom.
Katz's longtime companion, veteran reporter Nancy Phillips, has
become city editor. And Norcross' daughter came aboard to help
oversee digital operations, including the Philly.com website.
Phillips testified last week that she helped bring Marimow back to
the Inquirer for a second term as editor, introducing him to Katz
and Norcross. She said she also helped draft a cover story to
suggest Marimow was hired by then-Publisher Greg Osberg. Osberg left
weeks later.
His successor, Bob Hall, fired Marimow last month. Katz, in his
testimony, cast Hall as a highly-paid puppet who carries out
Norcross's editorial agenda.
"What's at stake is the independence of The Philadelphia Inquirer,"
Marimow lawyer Bill Chadwick said Wednesday.
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The company's board chairman, philanthropist H.F. "Gerry" Lenfest,
testified that he invested $10 million as a civic gesture, only to
watch Norcross wrest control of decisions large and small.
"Everything is really done (under) the direction of Norcross," said
Lenfest, who signed on to Katz's lawsuit.
Norcross — who wielded most of his political power behind the scenes
— was expected to testify Wednesday, but chose to stay off the
stand.
Katz's lawsuit seeks to return Marimow as editor and oust Hall on
grounds that his contract has expired. The judge has declined to
remove Hall, at least for now.
Newsroom employees — including editors, reporters and photographers
— have endured pay cuts, annual two-week furloughs and staff
reductions as a series of owners have tried to turn the company
around.
The company's sale price has dropped from $515 million in 2006 to
$139 million in a 2010 bankruptcy auction to $55 million last year.
[Associated
Press; MARYCLAIRE DALE]
Copyright 2013 The Associated
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