The state spent another 610 million HUF on distributing Orbán’s favorite newspaper

We knew that the purchase of Nemzeti Sport’s publisher cost the taxpayers, but we didn’t know how much. It took us two years to win the lawsuit forcing disclosure of the price – according to the contract, Prime Minister Viktor Orbán’s favorite paper was acquired from Mediaworks Hungary Zrt. for 3.5 billion forints. And the cost for taxpayers does not stop there: the state pays government-owned MédiaLOG-DMHM Logisztikai Zrt. 610 million forints to deliver the paper to subscribers.

After it was bought by the state, the publisher of the sports daily Nemzeti Sport N.S. Média és Vagyonkezelő Kft. launched a public procurement procedure for the distribution of daily newspapers and magazines to subscribers. According to the official procurement bulletin, the tender was won by MédiaLOG-DMHM Logisztikai Zrt., which will be responsible for distributing the Nemzeti Sport daily newspaper and Nemzeti Sport Magazine to subscribers based on the database provided by the contracting authority, as well as collecting subscription fees from those who choose to pay in cash. The contract lasts for 24-month and costs a net total of 610 million forints.

According to the contract, the newspapers must be delivered on the day of publication, and the Sunday edition must be delivered by 8 a.m. on the next working day. Additionally, the contractor is required to provide VIP services (e.g., delivery to events) and maintain email-based customer service. There was little competition for the contract – no other companies submitted a bid.

According to the tender notice, any bidder was deemed ineligible if, in the three business years prior to the publication of the call, their net revenue from subscription-based newspaper distribution services did not reach a total of 400 million forints. Bidders also had to have a reference for having carried out nationwide subscription distribution for at least 3,000 recipients over a minimum period of 12 months.

To the state, for 3.5 billion

In 2022, the state purchased the publisher of Nemzeti Sport, N.S. Média és Vagyonkezelő Kft., from Mediaworks Hungary Zrt. However, when our newspaper inquired about the purchase price, no answer was given.

Since the acquisition was made using public funds, we filed a lawsuit to obtain the data.

Last year, we won the case and received the contract. It revealed that Prime Minister Viktor Orbán’s favourite newspaper was bought by the state using 3.5 billion forints of taxpayer money.

Following our article, MSZP Member of Parliament Bertalan Tóth submitted a written question to Márton Nagy, Minister for Economic Development, asking what public service responsibilities justified the purchase of Nemzeti Sport, and how much it would cost Hungarian taxpayers annually to maintain the paper.

Instead of Márton Nagy, the response came from Tamás Vargha, Secretary of State for Defense. According to Vargha, “Nemzeti Sport is one of the most storied sports newspapers in the world and one of Hungary’s oldest brands, representing a national cultural value whose continued existence in print is in our national interest.”

The world may have missed the missive on the newspaper’s storied existence – circulation has been steadily declining for years.

Vargha did not respond to the questions regarding the cost of maintaining the newspaper. We know that distribution will cost 610 million forints over the next two years. Recently, it had also come to light that in the 2024 state budget, the paper received 1.3 billion forints in subsidies, justified by claims that the “constantly changing market environment” poses significant challenges for the daily.

The distributor is a KESMA company

Another noteworthy detail about the current public procurement process for distribution is that the winning company, MédiaLOG-DMHM Zrt., is owned by Mediaworks Hungary Zrt. – the company from which the state purchased the newspaper.

Mediaworks itself is owned by KESMA, the pro-Fidesz media foundation.

Since May of last year, the state-owned Media Service Support and Asset Management Fund (MTVA) has been acting as the owner representative on behalf of the state.