Illinois Newspaper Sale Tests New Law Aimed at ​Local Ownership

A recent sale of several Illinois newspapers by better Newspapers Inc. to Paxton Media ​Group is putting a new state ⁣law designed to encourage local ownership to the test, raising concerns about ⁢transparency and potential enforcement. The law, passed in response to ​similar acquisitions and subsequent layoffs, requires companies to notify the⁤ Department of Commerce and Economic ⁤Chance (DCEO) 120 days before a sale, perhaps ⁣allowing local buyers time to make a competing offer.

State Senator Steve Stadelman, a former TV‍ anchor ‌in ⁣Rockford and sponsor of ‍the legislation, expressed concern that media companies may be unaware of the law’s requirements. He indicated the ⁤state ​needs to proactively promote the law and suggested the General assembly may consider strengthening it with follow-up legislation to establish a clear enforcement mechanism. “I think that’s⁣ something I’ll have ⁤discussions with over the next weeks and months to see what we need ⁤to do to update and⁣ review ⁤legislation to make sure … that ⁢there are incentives‍ for organizations‍ to follow the law,” ⁤Stadelman said.

The sale included The Morning Sentinel (Centralia), Union Banner ‌ (Carlyle), Washington County ​News ‌(Nashville), Greenville Advocate, Salem Times-Commoner,‍ the Breeze Courier ​ (Taylorville), ⁤ robinson Daily‍ news, and The Daily Record (Lawrenceville). Paxton⁤ Media ⁣Group was also involved‌ in a 2023‍ purchase of‌ The Southern Illinoisian in Carbondale from Lee Enterprises, a deal that followed with the layoff of all newsroom employees, fueling ⁢concerns about⁣ the future of ⁤local journalism.

Five county clerks in areas served by the sold newspapers reported they did not receive official notification⁢ of the sale from Better Newspapers, including the ​St. Clair County clerk’s office,where Better Newspapers is headquartered. Todd Marver,a reporter for the ​ Washington⁣ County News,confirmed that employees were also not informed.DCEO ⁤also ‍stated to marver that‍ it did not receive any notice from Better Newspapers.

Marver also noted recent‌ layoffs within the newspapers, expressing concern⁤ that employees were not given the 120-day notice stipulated by the ‍law, which would have provided ‍them with more‌ time to seek‌ new employment.

While Paxton​ Media Group⁢ has as‌ hired new reporters at The Southern Illinoisian, Stadelman emphasized his broader concern ⁤about the impact of newsroom layoffs on communities.⁢ He clarified the law isn’t ​intended to block‌ out-of-state or larger companies from acquiring ‍newspapers, ⁣but rather to provide an opportunity for local ‍ownership. “I⁢ really truly believe that local ownership, local involvement leads to better coverage, more of a commitment to covering local news in a community versus a corporation that may have other financial ‌interests and doesn’t necessarily care about what’s happening on ⁢the ground ⁤locally,” Stadelman said.

Representatives for Better​ newspapers ⁢and Paxton Media Group did not respond to requests for comment.

The sale occurs amidst a significant‍ decline in Illinois’ newspaper⁣ industry.​ A report‌ released last ⁢year by the General⁢ Assembly’s Local Journalism Task‌ Force revealed ​that one-third of the state’s newspapers have closed as 2005, ‌resulting in an 86% decrease in newspaper⁢ jobs over ⁢that period.