Sunday Herald - Sale To Newsquest

Sale To Newsquest

After having over-paid for acquisitions during the dot-com era, Scottish Media Group was in serious financial trouble by 2002. The company decided to sell its publishing arm, whose assets included The Herald, Sunday Herald and Evening Times and magazines including Scottish Farmer, Boxing News and The Strad and a public auction, accompanied by a heated public debated, ensued.

When it looked like the right-wing Barclay brothers, owners of rival papers The Scotsman and Scotland on Sunday, were set to become the publishing group's owners, questions were raised in the Scottish Parliament. Had Sir David and Sir Frederick Barclay and Andrew Neil succeeded in acquiring the fledgling Sunday Herald, they would have closed it down to give a clear run to their own Scotland on Sunday title, and merged The Herald with The Scotsman. That their goals were anti-competitive was confirmed when an unsigned leader written by Jaspan making these claims went unchallenged. Determined to prevent the paper being acquired by tax exiles with no sympathy for its centre-left ethos, Jaspan led a campaign to keep it out of their hands. This included lobbying senior Labour Party (UK) politicians at their September 2002 conference in Blackpool.

The campaign proved successful, with even the Financial Times questioning whether it was right for the Barclay twins to have a monopoly of quality papers published in Scotland. The Sunday Herald and related titles were sold instead to Newsquest (a Gannett company) in a £216 million ($414 million) deal. This was cleared by the UK Department of Trade and Industry in March 2003, partly because it was persuaded the papers would keep their editorial independence under Gannett's ownership and because of Gannett's creation of a new Scottish division to run the acquired papers from Glasgow. The DTI report said: "We do not expect the transfer adversely to affect the current editorial freedom, the current editorial stance, content or quality of the SMG titles, accurate presentation of news or freedom of expression." The deal completed on 5 April 2003.

Jaspan resigned in 2004 to become editor of The Age in Melbourne, Australia. Richard Walker was appointed as his successor. Walker, a former production journalist on both the Daily Record and Scotland on Sunday had been with the title since its launch and had served as deputy to Jaspan for five years.