DOGAN
On a sunny and hot afternoon in late august of summer 2023, a speedboat is running fast from the island of Leros, in the Aegean Sea, heading to the Turkish coast. Dodecanese (literally, twelve islands in ancient Greek) is officially an Hellenic archipelagos but it’s so close to Turkey one can spot the coastline from its shores. No surprise, then, many Turkish millionaires choose those famous sands, including Rhodes and Cos, for their vacations. The people on that boat were in vacation as well, but that holiday was ill-fated: for reasons still unknown the speedboat hit some rocks on its way. The impact was so hard, all the people on board were pushed off their seats and violently hit the water. Among them, the prominent Turkish billionaire and magnate Ali Sabanci with her wife Vuslat. They were both airlifted to Istanbul where they were admitted into intensive care (a drug-induced coma) for the severe wounds they suffered. They survived, at least.
THE SECRET OF WEALTH? NEVER DISPERSE IT
Just few weeks before, life seemed amazing for the wife of Mister Sabanci. The setting was completely different: a hill opening onto a dramatic peaky landscape. On top of it, a curious wave-shaped building looked like a science fiction barn designed by some whimsical celebrity architect. Or, better, an alien spaceship landed from outer space, because the venue has nothing to do with anything else around it. The Baksi Museum is located in the most unlikely place in the world where one would build a place of culture and art: in the heart of Anatolia, one of the most inaccessible places in Turkey and all over Europe. Getting there it takes hours by car from the already remote Trabzon, on the Black Sea, along a barren and uninhabited landscape, crossing poor villages made of rough mud bricks and wood, each one of them dotted with the minaret of a Cami (mosque).
Despite the secluded place, a small crowd gathered at the museum entrance to the museum. An exhibit from Mrs Vuslat is opening. Art is only the latest of the many lives for the 52-year-old lady, whose first installation, commissioned by the Venice Biennale, was chosen by Valentino for a fashion show two years ago. Before that, she has been a powerful person in the media industry. And before that, she has been (and still is) a heir to the Dogan family, one of Turkey's greatest industrial dynasties.
As one of the secret rules in family capitalism goes “never disperse the wealth”, Mrs Vuslat went on to marry Mr. Sabanci, heir to the other richest Turkish family (with an estimated wealth of 10 billion dollars according to Forbes): Sabanci owns, among other things, the low-cost airline Pegasus, the Turkish Ryanair based in Sabinah Gokcen, once a secondary port of call and today, due to the millions of Turks who have emigrated, especially to Germany, an enormous and modern European hub.
THE CRADLE OF CIVILIZATION
Vuslat is a powerful manager and activist, ranked amongst the 100 most influential women in the world. Her choice of an unlikely vernissage among the steppes of Anatolia had a precise historical meaning: the Dogan family is originally from that area, which is close to Mesopotamia (modern Iraq), the cradle of human civilization. Origin of the dynasty date back as far as 1600. For centuries, though, they have been just a well-known family in the small and unknown village of Kelkit. Fortune started with Aydin Dogan: born in 1936, his life seemed to be on the same course of his ancestors, confined to Kelkit. He attended primary and secondary schools in the little village and got a high-school diploma in the bigger city, but still secluded in central Anatolia, of Erzincan. His giant leap arrived in 1956 when he attended the University in Istanbul, where he studied economy but, most of all, showed some early signs of leadership: he became the Student Community Leader.
Three years after moving to the country metropolis, an under 25 years old Aydin registered his first business ever: he started a construction equipment trading company. A billionaire was born.
In 1961, few years after its creation, Aydin’s company was still very small, with just three employees. Today his firm Dogan Holding is one of top Turkish conglomerates, with over 13,000 employees and an additional 12,000 people through suppliers: revenues stand at 1.6 billion Euros coming from oil industry, green energy, car components and tourism. Doğan Holding went on to became a public company listed in the Istanbul Stock Exchange: it shows a 10 billion Euros market capitalization.
FROM CONCRETE TO “MEDIA BARON”
Industry may make you rich, but it’s doubtlessly boring. As many self-made men, Aydin developed a passion for media: journalism always has a fascination in rich people. As early as 1979, the Doğan Holding became a publisher with the acquisition of the daily newspaper Milliyet. It was Dogan’s first step into the publishing industry. The biggest one, though, would arrive years later: in 2003 the family bought the ownership of Hurriyet, the country's main newspaper. Aydin gave it to her daughter Vuslat, who became CEO and then chairwoman. At the time, publishing was a big deal for the family: the purposedly named newco “Doğan Media Holding” controlled many newspapers (Posta, Hürriyet, Radikal, Fanatik, Turkish Daily News) and 21 TV channels all over the world: a vast empire which gained Aydin the “Media Baron” nickname and a role as chairman of the World Newspapers Association (WAN).
The family left in 2018, due to disagreements with Prime Minister Erdogan. But Vuslat still has a passion for publishing. She does not believe in the twenty-year prophecy of 2043, the last year for paper newspapers on earth: «Newspapers are very strong brands, very hard to bring them down. Moreover, it is very difficult to create new ones». However, they went the wrong way: «In recent years, to overcome the crisis, newspapers have focused on sensationalism and polarization: it is a divisive information model, which is not good and does not work, because news, of any denomination, is a right".
DON’T MESS WITH THE TAXMAN (AND THE SULTAN)
For decades, from 1977 until 2009, mister Dogan himself has been the top single taxpayer person registered in all Turkey. He always equated patriotism with a duly filed tax return. But such a guinness of record and such a nationalistic stance hardly can go unnoticed, especially in Turkey and especially so if the Prime Minister is the “Sultan” Erdogan. So Turkey tax agents looked into Dogan’s empire and found something less nice than the founder’s emphatic declarations. In 2009, the Ministry of Finance charged a humongous tax fine about 3.8 billion Turkish Lira (approximately 2.53 billion Dollars).
The family claimed that the decision was based on "subjective" evaluations. They argued that if similar fines were to be imposed on other companies on similar grounds, all the share transactions in Turkey could easily be subjected to the same treatment and fined by the tax authorities. And since that was not the case and it was only Dogan Group that was penalized by the Ministry of Finance, the case was politically motivated, they implied. This implication was voiced strongly by the spokespersons of international bodies like the European Union, while the issue became a priority item in Turkish political agenda.
For some time, the Dogan family became a sort or “freedom martyr”. For many months the holding company held negotiations with the Ministry of Finance. After 3 years long strong-arm with tax authorities in 2012, the holding reached an agreement: Doğan paid an undisclosed sum.
Was it an Erdogan’s retaliation against a political enemy or a real Dogan’s responsibility no one will ever know, but for sure the scandal marked the patriarch’s autumn. Mister Aydin retired as head of Doğan Holding on 2010 New Year’s Day, handing over his post to her other daughter, Arzuhan Doğan Yalçındağ, who also serves as head of the Turkish Industrialists' and Businessmen's Association (TÜSİAD), the country’s powerful lobby.
While her sister took the family’s empire steering wheel, Vuslat built a career between family responsibilities and public roles: speaker at the World Economic Forum in Davos, the club of the world's powerful, she started a passionate effort about women's civil rights, in a country where in rural areas, like that of the museum, they all wear the full burqa and are still on the margins of society. She lobbied for an increase in the number of women in Parliament. Thanks to her, in the last political elections, female deputies rose to 104, still a minority but the share rose from 4% to 17% of deputies.
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