NBC's Financial Relationship With The President-Elect Puts Its Reporters In An Impossible Situation
Blog ››› ››› KATIE SULLIVAN
NBC and its parent company, Comcast/NBCUniversal, have put the network’s news division in an impossible situation by entering into a financial agreement with the next president of the United States. As NBC News reporters grapple with the announcement that President-elect Donald Trump will remain an executive producer on NBC’s Celebrity Apprentice, many aren't discussing the intolerable conflicts of interest this business arrangement poses to NBC. In this deal, NBC will have a fiduciary relationship with the president, making it financially invested in Trump’s reputation -- a situation that threatens to compromise the news division’s political reporting. The arrangement is now providing a case study in how conflicts of interest affect the quality and the integrity of reporting.
Variety reported on December 8 that Trump will stay on as an executive producer of Celebrity Apprentice. As Media Matters pointed out, because of the business relationship, NBC is now financially invested in Trump's reputation and will have an incentive to weigh aggressive reporting about Trump across its news platforms against what the network mighty lose in revenue if Trump's reputation is damaged. The arrangement implicates NBC News, CNBC, and MSNBC.
NBC News’ reports on the announcement have generally presented the conflict as a possible problem for Trump, but not for NBC -- and that’s when the network reports on the deal at all. NBC’s flagship Sunday political show, Meet the Press, failed to address the story entirely on the December 11 edition. Meet the Press host Chuck Todd, who also anchors the weekday program Meet the Press Daily, said on December 8 that Trump being “connected to The Apprentice is not news to the American public.” NBC correspondents Kristen Welker and Peter Alexander both characterized the deal as a conflict for Trump, while downplaying NBC’s own conflict. Welker noted that there is “new scrutiny of the president-elect's decision to stay on as executive producer of The Apprentice,” referring to the deal as “Trump’s business entanglements,” and adding, “NBC Entertainment declined to comment, noting MGM owns and produces the show.” Joe Kernen, host of CNBC’s Squawk Box, told a critic, “Don’t bring it to your conflict thing again.” MSNBC’s Ari Melber argued that Trump remaining an executive producer isn’t a conflict, “it’s just … weird,” and made a point of saying that “NBC Entertainment is a separate division of our company” from NBC News.
MSNBC reporters have also tried to compare Trump’s deal with NBC to Obama receiving royalties for his books. But, as The Associated Press explained, Obama’s “books’ publishers are not financially tied to news divisions.”
By contrast, other media outlets have noted NBC’s numerous conflicts in this arrangement. On ABC’s This Week, host George Stephanopoulos asked incoming Trump chief of staff Reince Priebus: “The FCC regulates NBC corporate. Corporations could try to curry favor with the president by placing their products on the show, buying advertising. Isn't that an issue?” CNN’s Dylan Byers explained that the business relationship “presents a thorny situation for Comcast/NBCUniversal, which controls the [product integration] deals” that companies make with Celebrity Apprentice, which, according to Byers, often range from $5 million to $9 million. Trump personally profits from those deals, making NBC the middleman through which companies can “curry favor” with the president. And Fortune magazine noted that NBC was already criticized in October “for reportedly sitting on the Access Hollywood footage from 2005 that showed Trump boasting about committing sexual assault,” which the network reportedly withheld due to “fear of spurring yet another lawsuit from Trump.”
Media and ethics experts have also pointed out the untenable situation NBC has created for itself. Marcy McGinnis, a former CBS News executive and journalism professor, called the arrangement “mind-boggling” and said it’s “a clear conflict of interest” to have a company “that has a news division …. covering the president of the United States” when he “has an interest in a show on that network.” Aly Colon, a journalism ethics expert, noted people’s desire to “believe in an independent news division not affected by business ties,” saying, “A lot of people find it difficult to believe there is a wall between news and entertainment.” And NPR’s David Folkenflik pointed out that, as president, Trump will be appointing the regulators tasked with scrutinizing the media, which NBC has an obvious interest in. Media Matters’ Eric Boehlert explained on MSNBC’s AM Joy that “No amount of disclosure is enough here. Is NBC for the next four years, every time they report on Trump, [going to] say, ‘By the way, our parent company has a financial relationship with Donald Trump’?” Boehlert also asked, "what if a company, in theory, says, 'Let's give The Apprentice $5 million and Trump could get a cut of that?' I mean, we're just paying off the president.”
NBC cut ties with Trump last summer, declining to air his Miss USA and Miss Universe pageants and stating that the network did not want to be associated with Trump because his bigoted statements had defied its core values. What’s unclear now is whether NBC believes Trump’s values have changed or whether the network believes such statements became acceptable with his election.
Sign Media Matters’ petition telling NBC to dump Trump.