Why large foundations need to step up for smaller local news projects

Postcard of Athens, Ohio, via Wikimedia Commons

In the course of our reporting for “What Works in Community News,” Ellen Clegg and I were confronted with a reality that cuts against our usual optimism: that though news startups across the country are helping to fill the gap created by the decline of legacy newspapers, the new media landscape is unevenly distributed.

Large regional and statewide nonprofits like The Texas Tribune and NJ Spotlight News are doing reasonably well, though the Tribune has recently hit a few bumps and Spotlight has never been a fundraising behemoth. Smaller projects serving affluent suburbs, like a number of startups in Eastern Massachusetts, are doing well. But there are few independent news outlets serving low-population rural areas and urban communities of color, and those that do exist are often overlooked by the larger philanthropic organizations.

Corinne Colbert writes about that reality for a newsletter called Local News Blues, which I’ll admit I hadn’t heard of until my friend and teacher Howard Owens of The Batavian pointed me to it a few days ago. Colbert is cofounder and editor-in-chief of the Athens County Independent, a nonprofit digital startup that in southeastern Ohio. Late last week she wrote a commentary headlined “Does big philanthropy really care about our smaller news markets?” Now, you know the rule about question headlines: the answer is almost always “no.” She observes:

Nearly 60% of foundation grants go to national and global nonprofit outlets, according to the Institute for Nonprofit News. Local outlets — which INN defines as those serving audiences at the county, city or town level or having a specific focus — represent almost one-fourth of nonprofit news jobs, but we get less than 20% of foundation funding. That gap represents millions and millions of dollars.

Recently the Houston Landing, a well-funded nonprofit with strong backing from the American Journalism Project, imploded when the publisher fired the highly regarded editor and the top investigative reporter without offering any logical explanation. The Landing may recover, but there’s been a serious lack of transparency. Meanwhile, projects that Ellen and I have written about such as MLK50 in Memphis and the New Haven Independent have never been able to attract much in the way of national funding, even though both are performing vitally important work.

Nonprofits are bringing news and information to communities in ways that for-profits often no longer can. But it’s time for major foundations — including Press Forward, a $500 million effort comprising 22 philanthropies — to bring renewed efforts to helping not just large, sexy projects but more quotidian efforts as well. Fortunately there are signs that Press Forward gets it.

“Small markets … present business challenges that corporations are often unwilling to face,” writes Colbert, “and those challenges make launching or growing a local news operation especially difficult. National funders could ease those burdens, but first they have to acknowledge our existence — and our importance.”

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Why we should be wary of The Baltimore Sun’s return to local ownership

The Baltimore Sun’s convoluted ownership journey took an unexpected turn on Monday. The notorious hedge fund Alden Global Capital, which acquired the paper as part of its purchase of Tribune Publishing in 2021, sold the Sun to David Smith, who’s executive chairman of the television network Sinclair. The price has not been disclosed.

Smith is a Baltimore guy, and he’s buying the Sun as an individual — that is, the Sun will not be part of Sinclair. In that respect, the deal is similar to Jeff Bezos’ purchase of The Washington Post in 2013. The Post is not part of Amazon, although the mega-retailer was enlisted to sell discount descriptions to the Post, especially during the early years of Bezos’ ownership.

We are in the early hours of the Sun deal, so we don’t know how this is going to play out. It’s striking how much fear and criticism I’ve seen given Alden’s reputation as the worst newspaper owner on the planet, infamous for slashing newsrooms, selling off real estate and making journalists work out of their homes. Normally a transfer to independent ownership would be celebrated, and, in fact, Smith might provide an infusion of cash and energy. Then again, he might also bring his toxic brand of right-wing politics to the Sun.

The Sun is the flagship of a regional group that also includes the Capital Gazette in Annapolis, Maryland, the site of a horrific mass shooting some years ago.

This didn’t have to happen. Back when Tribune was for sale, Baltimore hotel magnate Stewart Bainum reached an agreement to buy the Sun from Alden once Alden had acquired Tribune. Bainum, though, came to believe that Alden was not adhering to that agreement, and he wound up bidding for all of Tribune’s nine major-market newspapers.

Although Bainum was offering more money than Alden ($680 million versus $635 million), word at the time was that Alden’s bid was more straightforward, and the vulture capitalists won the prize. Among other things, Patrick Soon-Shiong, the billionaire owner of the Los Angeles Times and then a member of Tribune’s board, declined to stop the sale to Alden, for which he was roundly criticized.

Bainum, meanwhile, used some of his wealth to found The Baltimore Banner, a nonprofit digital venture that immediately established a reputation for journalistic excellence. It will be fascinating to see whether Smith rebuilds the Sun into a worthy competitor to the Banner, or if instead he uses it to grind his political axe.

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In ‘Hedged,’ Margot Susca explains how private equity destroyed newspapers

The media business analyst Alan Mutter once memorably asserted that newspapers’ “Original Sin” dates back to the mid 1990s, when they started giving away their journalism for free on the internet. Margot Susca, though, argues that the real fall from grace came roughly a decade later, when Fortress Investment Group paid $530 million to acquire Liberty Group Publishing, renaming it GateHouse Media. That transaction marked the beginning of the private equity era in journalism, an era defined by hollowed-out newsrooms and ghost newspapers that lack the resources to provide the communities they purportedly serve with the news and information they need.

Susca, an assistant professor of journalism at American University, tells the sad story of how private equity wiped out vast swaths of the newspaper business in “Hedged: How Private Investment Funds Helped Destroy American Newspapers and Undermine Democracy.”

Read the rest at The Arts Fuse.

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The 016 turns 5

Worcester City Hall. Photo (cc) 2015 by Dan Kennedy.

Congratulations to Mark Henderson, a Worcester media entrepreneur who’s celebrating the fifth anniversary of The 016, a news-oriented social-media platform for the city and surrounding communities. The platform draws on media outlets in Worcester and beyond, and — crucially — is non-algorithmic, which means that readers can customize their feeds and news organizations don’t have to spend money in order to move up in users’ feeds. It’s a free, advertiser-supported site.

Henderson, a former top editor at Worcester’s Telegram & Gazette, recently talked about what The 016 (a reference to Worcester’s Zip code) has accomplished in a video conversation with Worcester media figure John DiPietro. Over the past five years, Henderson said, The 016 has received 17 million email opens, 13 million click-throughs to other media, 6.7 million video views, and 4.5 million clicks on the site’s own original news articles.

It’s a fascinating idea, and if you’d like to know more about how it works, I wrote about The 016 for Nieman Lab in 2019.

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‘Do you know who I am?’ The Washington Post on the turmoil at Houston Landing

It’s still not clear why the editor of the nonprofit Houston Landing and its top investigative reporter were fired this past week. But Will Sommer of The Washington Post (free link) has quite an anecdote about CEO Peter Bhatia’s reaction when he was challenged about his decision to start attending news meetings, which would violate the traditional wall between editorial and business operations: “Do you know who I am? Seriously, do you know who I am? I’ve been a journalist for 50 years, I have 10 Pulitzer Prizes, I’ve been editor of a half a dozen newspapers.”

Sommer and Sophie Culpepper, in her earlier (and more thorough) Nieman Lab report, write that Bhatia’s main complaint about editor Mizanur Rahman was his belief that he didn’t take advantage of digital tools as much as he should have. Reporter Alex Stuckey may have been collateral damage, fired pre-emptively because of her outspokenness and her loyalty to Rahman.

None of it makes any sense because the Landing, by all accounts, is off to a good start, publishing excellent journalism and in decent shape financially thanks to lavish philanthropic support.

One quibble about Sommer’s story. He writes:

The sudden turmoil at Houston Landing — a seven-month-old news site backed with a hefty $20 million in foundation funding — is raising questions about whether the scores of nonprofit outlets attempting to save journalism in communities across the country will end up mired in the same woes as their languishing corporate rivals, from muddled transitions to digital formats to executive decisions that often come without a clear rationale.

I don’t understand that framing. What’s unfolding at Houston Landing is a reflection of the human condition and how that plays out at organizations. There are good leaders and bad, inspired and mediocre, mensches and jerks. Do recent drastic cuts at The Washington Post, for instance, “raise questions” about what happens to a great newspaper when its billionaire owner starts to lose interest?

There is nothing about the current mess at Houston Landing that says anything about nonprofit news. It’s just one of those things, and it’s ugly.

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How Norma Rodriguez-Reyes became one of New Haven’s leading media executives

Norma Rodriguez-Reyes. Photo (cc) 2021 by Dan Kennedy.

On the latest “What Works” podcast, Ellen Clegg and I talk with Norma Rodriguez-Reyes, the president of  La Voz Hispana de Connecticut. La Voz started circulating in New Haven in 1993, but fell on hard times. Norma helped take charge of the paper in 1998 when it verged on bankruptcy. Under her direction, the for-profit newspaper has grown into the state’s most-read free Spanish-language weekly. It reaches more than 125,000 Spanish speakers across Connecticut.

Norma is among the entrepreneurs highlighted in our new book, “What Works in Community News.” In addition to her work at La Voz, Norma is the board chair of the Online Journalism Project, the nonprofit umbrella that includes the New Haven Independent, the Valley Independent Sentinel, and WNHH community radio. The New Haven Indy and the radio station both work out of La Voz’s offices in downtown New Haven.

I’ll be in New Haven next Tuesday, Jan. 16 (details here), to talk about our book in a conversation with Paul Bass, the founder of the New Haven Indy and now the executive director of the Online Journalism Project. Paul is also in charge of yet another nonprofit media project, the Independent Review Crew, which produces arts and culture reviews in cities across the country, including Boston. He talked about the project on our podcast last September.

Ellen has a Quick Take on a surprising development in local news on Martha’s Vineyard. The ownership of the weekly Martha’s Vineyard Times has changed hands. Longtime publishers and owners Peter and Barbara Oberfest sold the Island news organization to Steve Bernier, a West Tisbury resident and longtime owner of Cronig’s Market.  And the acting publisher is Charles Sennott, a highly decorated journalist and founder and editor of The GroundTruth Project. He also helped launch Report for America.

I discuss a hard situation at Eugene Weekly, an alternative weekly in Oregon that’s been around for four decades. EW has shut down and laid off its 10-person staff after learning that the paper was the victim of embezzlement. Although the folks at EW are optimistic that a fundraising campaign will get them back on their feet, the closure has had a devastating effect on Eugene’s local news scene.

You can listen to our conversation here and subscribe through your favorite podcast app.

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The Star Tribune, now under new leadership, will bolster its coverage of Minnesota

Photo (cc) 2018 by Ken Lund

Amid the evisceration of large regional newspapers at the hands of corporate and hedge-fund owners stand a few notable exceptions. The Boston Globe, The Seattle Times, The Philadelphia Inquirer and several others are among the major metros with committed local ownership that have managed to survive and even thrive. So, too, with the Star Tribune of Minneapolis, which under billionaire owner Glen Taylor has undergone a renaissance, transforming itself into a profitable business and a Pulitzer factory.

Now the Strib is growing. As Ellen Clegg writes at What Works, new CEO and publisher Steve Grove is expanding the paper’s reach into the more rural parts of the state, where the lack of reliable news and information is especially acute. Ellen writes:

The expansion plans are nothing if not ambitious. The newsroom has posted jobs for reporters in north central and southwest Minnesota and is expanding existing teams in communities outside the Twin Cities of Minneapolis and St. Paul. Back in the downtown Minneapolis office, the Strib is launching a “Today Desk” to track breaking news online and beefing up that reporting team. Grove is also in the market for a greater Minnesota columnist to roam the state’s rural communities and report on trends — the kind of coverage that has been harder for small nonprofit media startups to sustain.

The Star Tribune is one of the projects that Ellen and I write about in our book “What Works in Community News,” which was published today by Beacon Press.

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Our book launches today, and if you can’t make it in person, you can watch online

A little over five years ago, at a Chinese restaurant in Harvard Square, Ellen Clegg and I sketched out a rough outline for the book that would become “What Works in Community News.” Today is our book’s official publication date. We owe a debt of gratitude to a lot of people, including our publisher, Beacon Press; the news entrepreneurs and thought leaders who we interviewed for the book as well as for our podcast; and our families for putting up with us.

Our launch party is today at 7 p.m. at Brookline Booksmith, and it looks like we’re going to have a full house. If you haven’t registered but would like to tune in, you can do so here. In addition, on Thursday, Jan. 11, from 7 to 8 p.m., I’ll be giving a presentation on our book via Zoom. It’s being sponsored by the Tewksbury Public Library, but I know a number of other libraries are taking part as well. You can register here. I’ll be solo; Ellen and I are pursuing a divide-and-conquer strategy, handling some events together and some with one or the other.

We are really looking forward to tonight in Brookline, and I hope to see you on the other end of the screen this Thursday.

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How Alden and Gannett inadvertently provided a boost to startup local news projects

The Buell Public Media Center in Denver, home of The Colorado Sun. Photo (cc) 2021 by Dan Kennedy.

Is there a silver lining hiding somewhere inside the rise of newspaper ownership by private equity? Brant Houston says yes. In a recent essay for the Gateway Journalism Review, Houston argues that what he calls the “Alden effect” has provided a significant boost to startup news projects as communities fight back against the destruction of their legacy newspapers. Alden is a reference to Alden Global Capital, a hedge fund that owns two newspaper chains, MediaNews Group and Tribune Publishing, which between them control about 100 papers. Houston writes:

Alden Global is a call to arms for the creation or expansion of alternative, and often nonprofit newsrooms. A call to arms that should have been sounded years ago.

Call it the Alden effect.

Alden’s brazen and brutal harvesting of a disrupted and distressed news industry has made clear the long death spiral of newspapers and legacy media. And it has made clear how a new business model for journalism (usually a nonprofit model or a public benefit corporation) is needed and how independent digital newsrooms need to form deeper alliances.

Houston is the Knight Chair in Investigative Reporting at the University of Illinois. He talked about his new book, “Changing Models for Journalism,” in an appearance last June on the “What Works” podcast. And a personal note: He was my first editor at The Daily Times Chronicle of Woburn, Massachusetts, way back in 1979.

In his Gateway article, Houston traces such Alden-driven moves as a closer relationship between two existing nonprofits, Voice of San Diego and inewsource, in response to Alden’s acquisition of The San Diego Union-Tribune; the merger of WBEZ and the Chicago Sun-Times following Alden’s takeover of the Chicago Tribune; the founding of The Colorado Sun by 10 Denver Post journalists who’d had enough of Alden’s cuts; and the wealthy hotel magnate Stewart Bainum’s decision to found a high-profile nonprofit, The Baltimore Banner, after he lost out to Alden in a bid to purchase Tribune Publishing, whose holdings include The Baltimore Sun.

Ellen Clegg and I encountered the Alden effect over and over in our reporting for our book, “What Works in Community News.” We might call it the “Alden and Gannett effect,” since we also examined communities whose newspapers had been shredded by Gannett, our largest newspaper chain with about 200 papers. In addition to Denver, the projects we write about that have their origins in cuts by Alden and Gannett include:

  • Memphis, Tennessee, where nonprofits such as MLK50 and the Daily Memphian are filling some of the gaps created by cuts at Gannett’s Commercial Appeal.
  • The Bedford Citizen, a small nonprofit in the Boston suburbs launched about a dozen years ago as Gannett’s predecessor company, GateHouse Media, hacked away at the local weekly and ultimately closed it.
  • Mendocino County, California, where two refugees from Alden papers started a digital site called The Mendocino Voice.
  • Santa Cruz, California, where two former employees of Alden’s Santa Cruz Sentinel founded a nonprofit called Santa Cruz Local and where a larger for-profit, Lookout Santa Cruz, is operating as well.

Starting a news project is grindingly hard work, and Ellen and I came away with enormous respect for the news entrepreneurs we interviewed. It would be easier if legacy newspapers had remained in the hands of local interests. But, as Houston argues, the rise of Alden, Gannett and other chain owners has provided a jolt to efforts aimed at reviving community-based journalism.

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