From the President

Our Greatest Treasures

Human capital could become increasingly important as businesses move past the pandemic crisis into new areas of focus.

The other night over dinner – socially distanced and eaten outdoors – I was talking with a friend who consults with start-up companies. He contends that COVID-19 and its aftermath are changing businesses’ strategic focus.

According to his line of reasoning, before the pandemic all companies focused on profit and loss. Shutdowns moved attention to balance sheet and cash flow. Once offices reopen, the emphasis will shift to human capital. To remain successful, companies will need to attract and retain the best talent.

I thought of that conversation when I read the pieces for this issue of TFM. Our cover story, written by TFM editor Janet Stilson, profiles the 2021 award winners to be honored during Media Finance Focus 2021 – again being held virtually. These people represent MFM and BCCA’s human capital; they are the volunteers who help the associations fulfill our mission to members.

Cindy Pekrul, a former MFM/BCCA Board chair and a former executive at WarnerMedia, deftly moderated a March roundtable about returning to work. She also contributed an insightful article about maintaining corporate culture during the pandemic. This is important information for leaders and employees.

Three columns also have a human capital focus. In “Human Factor,” Josef Martens tackles – head on – the question of uncertainty. He urges leaders to question their unconscious biases and accept that uncertainty is part of the job. “Credit Where Due,” written by Dan McCall, senior manager, U.S. credit and collections for Discovery Communications, focuses on the tension between sales and credit teams. McCall offers three steps to “optimize the relationship.” Even our “Last Word” column, written by TEGNA senior director of tax, Sean Hetzler, focuses on human capital (along with the notion that taxes are always a certainty). Accommodating remote employees can expose companies to unanticipated tax expenses; some analysis before making a decision may be wise.

Two other articles round out this issue of TFM. First is an in-depth look at the move to curb market power currently held by Google and Facebook. Lerman Senter attorney Mark J. Palchick looks at both the findings from a 2020 congressional investigation and lawsuits pending against the two behemoths. A sidebar covers the December 2020 antitrust lawsuit that was filed against Facebook by the Federal Trade Commission along with 46 states, Washington, D.C., and Guam.

Our media valuation feature, written by Stout managing director Kimberly Randolph and analyst Colin O’Brien, offers a deep dive into the business of esports. It’s a newish business with a variety of different potential revenue models and streams. Unlike with other sports competitions, esports games involve intellectual property owned by companies. This directly affects the development of leagues. Investments in franchises also work differently from those for traditional sports. Even the rules around players seem to vary from those for other pro sports franchises. Finally, as outlined in a sidebar to the article, the content platform is an integral part of the business.

As Martens writes in his column, uncertainty is part of what leaders are paid to handle. One of the best ways of doing that is to take advantage of the expertise available from your MFM and BCCA network. And, if you are looking for ways to improve your human capital equation, research shows that investing in employees – offering things such as association membership and participation – pays off. As our conference theme promises, we can move “Together Toward Tomorrow.”

Josef Martens urges leaders to question their unconscious biases and accept that uncertainty is part of the job.

Mary Collins is president and CEO of MFM and BCCA; Mary.Collins@MediaFinance.org.

EDITORIAL ADVISORY BOARD

SALLY BUCKMAN Member Lerman Senter PLLC

DENISE DWYER Accounting Manager/Assistant Controller Morgan Murphy Media—West

GREG LECHOWSKI Market Controller, Phoenix Bonneville International

CAL MOSTELLA Vice President, Treasurer WarnerMedia

JOHN SANDERS Principal Bond & Pecaro

MEREDITH SENTER Member Lerman Senter PLLC

C. ROBIN SZABO President Szabo Associates

JAMIE GRANDE MFM/BCCA Staff Liaison

CONTRIBUTORS

SEAN HETZLER TEGNA Inc.

JOSEF MARTENS

NAT McCALL Discovery Communications

COLIN M. O’BRIEN Stout

MARK J. PALCHICK Lerman Senter PLLC

CINDY PEKRUL

KIMBERLY M. RANDOLPH Stout

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