John Henry’s sweet deal
By 
John Henry, the billionaire owner of the Boston Red Sox and the Boston Globe, appears to have negotiated a very sweet deal when he sold the Worcester Telegram & Gazette in June, according to documents on file with the Securities and Exchange Commission.
The documents were filed by New Media Investment Group, which purchased the Telegram & Gazette in November along with the rest of the newspapers owned by the Halifax Media chain. New Media, which sprung out of theGateHouse Media bankruptcy, bought the Halifax chain for $280 million, and the sale is expected to be completed shortly.
Henry’s sale of the T&G was controversial. He had promised employees at the newspaper he would find a local buyer for the paper and, failing that, keep the newspaper himself. Instead, he sold the paper to Halifax Media of Daytona Beach, Florida, which in turn sold itself to New Media in November. New Media, based in New York, owns 450 publications in 27 states. Locally, it owns the Patriot Ledger, the Standard-Times of New Bedford, the Herald News of Fall River, the Cape Cod Times, the Enterprise of Brockton, the Metrowest Daily News, and the Providence Journal.
Henry purchased the Globe, the Telegram & Gazette, and a 49 percent stake in the subway newspaper Metro from the New York Times Company for $70 million. He is likely to recoup the entire purchase price by selling off just a portion of the assets. The SEC documents indicate he sold the Telegram & Gazette to Halifax for $17.4 million and he is in the process of selling the Globe property on Morrissey Boulevard in Dorchester, which is assessed at $40 million but likely worth far more.
The SEC documents (page F-76) confirm that Halifax paid a lot for what business people call intangible assets. For example, Halifax valued the Telegram & Gazette trade name at $2.6 million, subscriber relationships at $2.8 million, and advertiser relationships at $6 million. “Goodwill,” described as potential business synergies, was valued at $4.8 million.
Of the $17.4 million purchase price, only $5.3 million consisted of tangible assets, mostly accounts receivable and prepaid expenses. The value of property, plant, and equipment was only $1.6 million.
–BRUCE MOHL
BEACON HILL
Known as a policy wonk, Gov. Charlie Baker takes office with a healthy dose of heart, an emotion-driven dimension to the new governor that will soon collide with tough budget choices, CommonWealth’s Michael Jonas writes. Baker pledges to hold the line on taxes, the Boston Herald reports. The Berkshire delegation comments on Baker’s inaugural address. Scot Lehigh calls the speech a “good solid start.”
Essex County Sheriff Frank Cousins is being touted for Baker’s secretary of public safety, the Salem News reports.
Baker plans to release $100 million for bridge and road repairs to cities and towns, State House News reports.
Longtime UMass Amherst journalism professor Ralph Whitehead, a close confidante of new Senate president Stan Rosenberg, is in critical condition at Mass. General Hospital after collapsing at the State House following Rosenberg’s election on Wednesday to the top Senate post.
Gloucester City Councilor Sefatia Romeo Thaken is named interim mayor, replacing Carolyn Kirk, who joined the Baker administration, the Gloucester Times reports.
Fall River Mayor Sam Sutter has met with the owners of a contaminated landfill in the city’s industrial park to seek an extension for takeover of the property to cap it after the City Council missed a December 23 deadline.
Look for Boston mayor Marty Walsh‘s first State of the City address next week to address his campaign vow to expand full-day kindergarten for four-year-olds, writes the Dorchester Reporter‘s Bill Forry, who spotlights a community-based Dorchester early education program that is a model for such efforts.
OLYMPICS
Boston gets the nod from the US Olympic Committee to be the US city put forward in the international competition to host the 2024 Summer Olympics. The group No Boston Olympics vows to fight on all fronts, including the ballot, the Boston Herald reports.
Worcester Mayor Joseph Petty backs Lake Quinsigamond for rowing events, the Telegram & Gazette reports.
INTERNATIONAL/NATIONAL POLITICS/WASHINGTON
French police have the two at-large suspects in this week’s deadly Paris attacks surrounded, while a second attack is now unfolding with a gunman having killed two people and taken five others hostage at a kosher supermarket on the eastern edge of the city.
President Obama proposes a way for students to attend community colleges for free.
Many states are moving to ban powdered alcohol before it even hits stores, Governing reports.
ELECTIONS
The National Review reports that Mitt Romney is “more open to a third presidential bid than ever before.”
BUSINESS/ECONOMY
Republican Sen. Charles Grassley of Iowa has asked Red Cross officials to explain how it spends funds after a series of reports by ProPublica and NPR questioned the charity’s claim that 91 percent of donations go to services.
President Obama announces a plan to shave insurance costs on federally issued mortgages, cutting the premiums and opening the market to some 250,000 more potential homeowners.
EDUCATION
Revere is one of five New England school districts to split $16 million from the Nellie Mae Foundation for student-centered learning initiatives, the Item reports.
New Bedford city councillors challenged the School Committee and the mayor after they said bond money earmarked for school repairs and equipment was instead diverted to teacher and staff salaries.
Sixty-four Dartmouth College students are facing disciplinary action after being accused of cheating in a class focused on ethics.
HEALTH CARE
The first new class of antibiotics discovered in 30 years by Northeastern University researchers may be the key to treating superbugs that have been resistant to traditional antibiotics.
TRANSPORTATION
New Hampshire Gov. Maggie Hassan says her state’s economic health would benefit from a commuter rail link to Massachusetts, the Associated Press reports.
ENERGY/ENVIRONMENT
A report commissioned by the Patrick administration says Massachusetts needs additional natural gas pipeline capacity, CommonWealth reports.
CRIMINAL JUSTICE
Jury selection begins Friday in the murder trial of former Patriots tight end Aaron Hernandez.
A former Middlesex assistant district attorney is charged with leaking information in return for drugs, the Associated Press reports.