He returned to the air this week after recovering from Prostate Cancer surgery we cannot be more grateful for you to be here today. I have the pleasure of working with frank over the past 26 years burqa what is remarkable that represents less than half of the ten year having his company for the better part of six decades with 40 years as ceo. Under his leadership it has expanded including historic partnerships the History Channel a anion lifeline and of course espn. Expanding between three and 33 television stations and they built their legacies through the best in class brand. We are most proud of the importance of Community Service to better the lie. To highlight the importance of corporate leadership to capture the culture of our company and to summarize i believe its not who you know when taking a page lets play hardball. [applause] bad beats at a Memorial Service i ever attended. [laughter] thats you find out who your friends are but first of all the hero of mine and i always knew the myth and the legend but the idea that i had about you with the peace corps with a big empty jungle to be regulated citizen kane was playing. But the thing about it to build this big empire. Everybody remembers the lights going out and then i heard about you to rebuild that and save it and you did that and in the book you point that out. [laughter] with humility. Where you getting your money cracks so how do you see a way through the changes that there is new media like espn that they use to chronicle today i always wonder what the losing team rights for the headlines. [laughter] a say in the book i think the short answer is coming to different points of their life i have to come on board as a whole generation of leadership was retiring because many of them had worked but that leadership. [applause] [laughter] has to be like that at every meeting. Why did you pick the theme from the state and . [laughter] i just like it. What helped our company get to the Great Depression they were behind in classified advertising in almost every market many was moving to morning newspapers that then came paper rationing which meant all of a sudden we were getting as much paper as the big guy and they had to cut back to take care of the rest of what they were producing so we could pick up on that classified advertising. But to go back to your original question and we had a huge opportunity that was very important. One was the will were Mister Hirsch appointed 13 people to be trustees of his company only five to be member of his family. Says they made that decision to have the Company Survive into the future it had to be in a professional only one or two have resigned it must not be a Family Member to succeed. We were ready to take advantage and without the Family Member and no more of 20 percent of a nonvoting stock. That was held by the charitable organization. So we gave them 136 million that was the obligation to fund them and to grow the company so both of those worked beautifully. The Family Support would have been there but it was really there because they could see we were making progress as bill loved every hire we made bringing someone may bring in one of the bestknown editor editors. But they left love that gave us the support. Our culture is the answer. We care about the employees. We work with each other. Single objective to have the best company we can have in every category and when people have difficulty in performing their job we help them to do that. We you always assume you change them out. My own experiences 75 percent chance of success within and 5050 with recruitment. You need both because if you only recruit from within then you miss a lot of knowledge and experience but on the other hand there is a learning curve and its very difficult to keep pace with that those are the principles i just learned i had no idea what i was doing. [laughter] for those of you who have read the book know the education that my father gave me he was an artist and a songwriter and a show man and had he not and taking a Civil Service job for about 12 years on treated me as an adult up until his last day he would say are you doing okay with Mister Hirsch . It was our fault. [laughter] you talk about the family is interesting. It works in large measure because it was the management majority so it was mandated to work so once they saw the cooperation and support it still has space it wasnt difficult for them its what the test data wanted and it is working and when i was ceo talking regularly with him and then you start there and any other issue is that everybody thought their name was hirsch that they were rich so i have great admiration with a different approach we all have great senses of humor so today they are unified with us and with management but in the end we have the votes. You bought 20 percent of espn for 120 million. I did the math. That equals six. [laughter] so tell me the day you decided there was money in sports. It never would have happened if we didnt build a relationship with the founder of abc as we know it today. We were on a board together and we were at a meeting together one day talking about this phenomenon of cable which change the business to being a programming source. If were going to lose a lot of money lets do it together so we did. We lost money for seven years before the combination of a e and history and doing that time when during that time thats a long time we hope you know what youre doing. Ultimately they said we really hit the mark but on the specific when espn became an opportunity for us via my seniormost partner decided i got a lot of pushback because the main programming theme was tractor pulls at that time that you just do that lifetime and a annie are losing money. Thats the principles of business. And it is working only incrementally. And we knew this would work. And that was a powerful part. That was the largest with the role that magazines played to the expansion initially. But there is that transactional sense. That he has his own problems right now. But this idea you have a woman in the book. And then we should have paid you more. I didnt have to write that. [laughter] so what was that all about . People higher agents but this idea of to the death talk about that. As the name implies the other guy does not have to lose for you to win. If you leave something on the table with the transaction its a play of the day if you dont you dont get to play another day. The last thing we believe in is hardball. [laughter] hardball has different definitions. [laughter] but when you say you get the last nickel of the deal what does that mean for the future quick. It is a relatively small world. And then its next to impossible we couldnt get it done. If there is an environment like that of two dozen people. And then to recognize the need to have a good outcome. That doesnt mean that you dont work hard or do you can to maximize the return that you will get. You may notice the Business Roundtable it is on the mark. Through the concept that everything should go through shareholder value is not the way to approach business. There are communities and employees and people who have skin in the game. And then to be required is the maximum return. And then you can make more money selling whatever. First of all that they dont make the money that they make at the peak. But the top line is not what it was. And the other day at the texas business hall of fame which i was inducted to a few years ag ago, i spoke and they came up to me afterwards and said she said it was sold. And then we tried to buy and did not succeed but the point was the price now is doubled and what she historically paid. I will say this. It doesnt cover the cost of distribution. So the fleeing of classified advertisers is the biggest single event it was a big source of income for newspapers that there were days when there were 115 pages of advertising 115 pages. We still have a reasonable business that was a big change but it is in the dna for those that we acquired to pay for themselves several times over so that is gravy. And we are doing something so president obama asked me if you only break even with your newspaper would you continue to publish . I said we might not be the right people to ask that because we have a Strong Organization otherwise. But you wouldnt get the same answer from the independent publisher to stay in business. But i feel better about it because this will strengthen and extend the life as far as i can see doing more Digital Advertising but the combination to get the reader to pay a select price today is 12 or 15 per week and holding on enough advertising and that is the formula for today. As a local publisher with the advertising. In philadelphia when i grew up there was a hundred 14 paper papers. But it was more than that. The evening news on television and a change in society because of bluecollar worker went to work early in the morning and left early in the afternoon and left the paper in the afternoon so now they moved over to a morning paper it is a change in society to have anything over the market is delivered and then that is perpetuated by what you do. Now were on the oped page. But when im telling you all now depends on print and the reporters of the thirties and forties we go to bed 630 at night because we get the best supporters in the country but bays those pays for that and New York Times. How does that work out economically quick. As long as we can make the Business Model that i describe continue to work its more on the digital side for good if we can continue to grow Digital Advertising and in particular video connect the cpm more than if it is just text. So im very well aware of what you say except the rare individual of what would be lost in the absence of these great daily newspapers that we all rely on. If i have not read the New York Times or the wall street journal somebody would bring something up and this is a big difference the random access device you dont know where as most Online Activity in pursuit of something pacific. Where else do you get that quick. I was going to read about pakistan. And the peripheral vision. And then you race through that. And thats even a better and has a little more time to do it but i usually get to the times but i would say in my view the journal has made the progress and what it does in the Washington Post and we dont see dad every day but for a number of reasons from a professional point of view with a Big Entertainment Company and i worry about the future. What are the economics of that quick. Its very tough. And a lot of people thought it could never work because it didnt have the benefit and thats also the future of television stations. In the television renew in the news we win in the marketplace. When this is very important because you want those that are wellinformed thats the way they are but with my broadcasting colleagues really compared to what you can learn so it is a tough fight but my confidence level is not only high but we are breaking the code on digital. And also that it is the highest quality whether a magazine or the quality of the paper. Thats a formula for going out of business. If you have a strong print product that outlook is not as dire as some people believe. You say. Absolutely. But that 20 yearold and a lot of what he is reading originated and the answer to that is to be a player and many of the markets with the leading that strive for that as well and if you can do that with a local staff that has entrepreneur tendencies and is willing to step up, there is a place. The numbers of people on paper or no question. I will bet if we did a survey of the majority prefer the paper version. We have them all you can have it online and if im home the biggest frustration i talk about in the book my wife is a newspaper reader if she gets to it first. [laughter] and stuff is torn out. The first is ironing the newspapers. [laughter] and the correspondence. But you wouldnt write that book. You have any more advice i get the sense that honesty is the key to be taken for granted the fact that they trust you they turn over the identity to you. I am grateful that has been a great run. And i have no regrets. Lets take some questions. Are you worried about too much opinion right now . Because its getting more torrential. Media at large quick. No. I guess. I wouldnt isolate that most have use of your own for polarization. I worry about that but less about opinion and the unpleasantness that comes out of that. It is toxic and to find a way to recover from. Believe it or not we want to leave that if you open your ears and listen youre not afraid to change your mind. Will it is the pace for philanthropy . So a very wealthy guy just moved it and said fine. But what they have done that there is a trend and there is a number of groups because the best journalist lost their positions they put together groups that allowed other sources. And we still get a fair amount. And always looking to publish with us. And there was more opportunity. Im glad for that and that greater trendline that that they do that succeeding well in society. And there are a number of those instances. Thinking yesterday of the Mark Zuckerberg testimony in that Silicon Valley mindset not always leave something on the table so im just wondering how you view these new entrants that are not traditional media but yet have become regular distributors of traditional content as well as new forms of information. Im sure as any thinking person does with a company that runs on algorithms and every human dimension and those that take delight in coloring outside the lines. But if it will change anything material remains to be seen. They are so powerful and never would have believed in the 60 years in business that our government would allow those two or three firms to get to the size that they have had with zero interference. We could not even by a competing newspaper that was losing money without spending times and hearings. And washington knows that but the endgame is all powerful and importantly as users there is a utility. But somebody said the other day we may come to look at this era the way we look at cigarette smoking. But working for papers friday night 630 your editor says two questions. But nobody says thats a fact. To say is this real . It is a wonderful process. But there is no process like that. I dont know anybody what they do. Ayn rand. [laughter] the objective this is leave something on the table available where everybody buys books. [laughter] that one of the messages i found urgent to deliver of what they have played to build communities and cities and at one time the largest circulation in the south from Texas Tech University to businesses were influenced by that individual. So thats also a story of america of citizen kanes message and a very funny guy and we were talking about citizen kane i havent seen that. [laughter] but if you believe that i have a bridge to sell you. Have you heard the obsession with that crazy baseball team. It is a religion and apparently that drives people. I wonder about these things. Look. We do a weekly rundown of the ten largest highest rated shows on television and on cable. Over the course of a yea year, dominated by the nfl games the Academy Awards and nfl with incredible consistency. But now. The line that hannity and Rachel Maddow highest rated shows of the week on cable but sports is tolerable. And people learn from sports you learn something about teamwork and honesty our lives can be pretty complicated. Its fun for me to come home and watch the Dallas Cowboys from what i love to do so its like a religion. Some of our colleagues are here today getting into television 1948 but in the mid eighties that made them big and bigger with acquisitions with kansas city and boston. And we had three stations one from each network so we started to scour the country and for a time that we moved up to the limits quickly to acquire the properties of the abc affiliate that is the biggest nonnetwork owned station as crime used to be and its not the same as it once was but absolutely we had to go there and we hired them to come with us is that a good place to spend our money and you can imagine i got some looks from the print establishment and that was by starting television stations and then the broadcasters were ready to lynch me. [laughter] but it all worked and now we are all on the same page but that succession of dayton kansas city boston and then we were buying stations close and then they overlapped from the technical standpoint by love and they come into those markets and then watching them. Thats one of the great stories. This is great. You wouldnt believe the pressure. And they get some carnival line crew ship and the toilets are overflowing. They dont ever get off that story now they are on to impeachment. Every night not just one or two but all this bits of news that you talk about i have to tell you they cannot get enough. They want a fire hydrant in their mouth. [laughter] we actually thought that would calm down some. We knew this would go one but of course it isnt lost on us and i am guilty because if she stays she hollers at the television. And then do radio its harder to get on television that then you have to refresh every two hours. But now it is every second unlike anything i have ever seen. He belongs there are. And this election will be crazy again. I hope are not that divided whoever wins. Perish the thought i remember at least one governor he or his wife would not leave the Governors Mansion after losing the election. I hope its not Something Like that to have a change of government and they wont leave. [laughter] what if we had states and the results are not clear. Thank you. [applause] a monarchy traditionally the power comes from god if you slay the monarch on the battlefield the idea is god decided he would be king or queen the power comes from god and the people are separate in our government the power always comes from the people and that document is designed to hand out a Job Description for congre