There’s nothing worse than a news story that waits to the halfway mark to get to the good stuff. And at the risk of doing that with this post, I’ll just say this right out: This story is total horseshit. The headline reads: “New Joint Venture Will Fund, Buy Indie Presses,” and goes on to this: “Publishers, especially independent publishers, have long felt that the content they publish has been undervalued by banks, and now one of the country’s largest financial institutions has agreed. One of New York’s major hedge funds—with several billion dollars in assets under its management—has formed a joint venture with National Book Network and its affiliated company, Rowman & Littlefield, that will provide a new source of financing for publishers.”
Fantastic. This is the sort of thing Zach and I have been talking over, whether we should get a loan to beef up Featherproof’s coffers so we can do more books per year and really get it rolling. A famous hedge fund company wants to help us make weird novels by obscure writers? Why thank you, sir, and please allow me to say that your cufflinks look extra sparkly today.
But halfway through the story comes what is lustily known in journalism as the nut graf: “Under the model, Cooper Square could loan an amount up to half of a publisher’s sales in the previous 12 months. Although Cooper Square is being positioned to provide funding to independent presses, DeAngelo said the minimum loan it is looking to make is $10 million—meaning a publisher would need revenue of $20 million to qualify. DeAngelo said Cooper Square is looking for a way to make smaller loans, but details have not been worked out. Interest rates will vary depending on the terms of the loan.”
An independent press with $20 mill in annual revenue? I’m sure they exist. Houghton Mifflin comes to mind. And maybe I’m understimating the revenues of other independent presses (and I’m not sure whether publishing groups like Avalon count as indie or not), but that seems like a very select few. (In case you need reminding, this is how we paid for overnighting Hiding Out to the printer). I’d also argue that if you’re pulling down eight figures or more a year, you’re probably not hurting for banks to give you a loan, no matter how magnanimous this project markets itself as. Lesson learned: Banks aren’t magnanimous.
The whole thing shouldn’t really get my ire up, because it’s just a story about people with money being willing to loan it to people with money, which is how the world works. It’s more the writer of that story upon whom the lame little laser of my anger should be focused. The lede should have read: “One of New York’s wealthiest hedge funds wants to give money to independent presses, but only the ones that are already wealthy.” The way it’s written now, for the first 45 seconds or so that I was reading that story, made the future seem so, so bright.