The National Shakes Up Managers, Plans Layoffs

Less than a year after its launch, the nationwide sports newspaper called the National underwent a major management shake-up Thursday, sources at the paper said.

Peter O. Price, the publisher and chief architect of the paper’s business plan, has been ousted. He will be replaced by Jaime Davila, an aide to Emilio Azcarraga, the Mexican media magnate who is financing the paper. Davila is an executive in Los Angeles with Azcarraga’s Univision Inc.

Price will keep his title of president and publisher but has given up his New York office to Davila and is working out of the advertising office five blocks away. It was not clear what Price’s responsibilities will be in the revamped organization.

In addition, three of Price’s top deputies are leaving, including Assistant Publisher Timothy W. Lasker, Finance and Administration Director Daniel W. Correa and Circulation Director Diane Morgenthaler.

Also, the National will suspend publication of its Sunday edition starting in December.

Several layoffs are expected on the business side, and at least seven layoffs are being considered on the editorial side. The National has 206 editorial employees, and Editor Frank Deford reportedly is fighting to keep the editorial layoffs to a minimum.

According to sources at the paper, part of Price’s problem was that he drastically underestimated the cost of launching the paper, which began in January in three cities, including Los Angeles, and now circulates in nine.

“The start-up costs were woefully underestimated, and that is what has us in trouble,” one employee said. “The revenue is about what we expected, but the costs went far, far beyond what Mr. Price told Mr. Azcarraga they would.”

Price estimated that the paper would take five years and an investment of $100 million to make a profit. Apparently, that $100-million figure was low.

Price also estimated that the paper would have an initial circulation of 250,000 and would be distributed in 12 cities by the end of the year. It is expected now to be in 11 cities by year-end and in 13 cities by February. Audited circulation figures have not been released.

The paper does not appear to be in any imminent danger of going under. Only last week, Azcarraga approved the budget for 1991.

The National created an instant stir by hiring, at great expense, some of the more prominent names in sportswriting, including Deford, author John Feinstein, columnists Mike Lupica and Dave Kindred, as well as editors Van MacKenzie of the Atlanta Constitution and Vince Doria of the Boston Globe.

“There is a feeling that it is a good product but there are problems in distribution and marketing,” one National executive said.