Web Summit Cuts Funding to The Ditch Amidst Leadership Changes and Controversies
The Ditch, a news organization, is owned by two journalists and supported by Paddy Cosgrave, the CEO of Web Summit. The organization reported government minister resignations due to stories it published. Following Cosgrave’s resignation as CEO in 2022, Web Summit’s board stopped funding The Ditch in November of the same year.
Cosgrave returned as CEO in April 2023, but financial support for The Ditch has not resumed. A Web Summit spokeswoman confirmed that the funding relationship had ended. The Ditch received €450,000 for the year ending in November, which is more than the previously mentioned support of about €1 million over five years.
The Ditch operates with revenue from reader subscriptions and donations. Ditch Media Ltd was founded in 2021, with Eoghan McNeill and Roman Shortall as directors. Adam Connon, Web Summit’s legal counsel, had a share in The Ditch, but it is unclear who holds it now.
Last year, Web Summit’s directors earned €4.05 million, an increase from €3.65 million in 2022. Katherine Maher and Damian Kimmelman joined the board in October 2023, after Cosgrave stepped down. He returned to the position in April. The company’s assets rose to €51.6 million, while liabilities increased to €46.6 million.
How has The Ditch responded to changes in funding and support since its inception?
Interview with Eoghan McNeill, Co-Director of The Ditch
News Directory 3: Thank you for joining us today, Eoghan. Let’s start with the journey of The Ditch. What motivated you and Roman Shortall to establish this news organization in 2021?
Eoghan McNeill: Thank you for having me. Our primary motivation was to create a platform committed to investigative journalism that holds power to account. We saw a gap in the market for independent reporting, and it became even more pressing with recent political events. Our aim has always been to provide a voice for the public and uncover stories that matter.
News Directory 3: The Ditch has been credited with reporting significant ministerial resignations. How do you feel about the impact your organization has had in such a short timeframe?
Eoghan McNeill: It’s humbling to see our work resonate at such high levels. The resignations highlight the significance of what we do, and it reinforces our belief that diligent journalism can lead to real accountability in government. It’s also a testament to the dedication of our team and the support from our readers.
News Directory 3: Can you discuss the impact of Web Summit’s funding on your operations, especially after the support was halted in November 2022?
Eoghan McNeill: The financial backing from Web Summit was instrumental in getting us off the ground and allowing us to focus on impactful reporting without immediate financial pressure. However, with the support ending, we’ve had to pivot and rely entirely on reader subscriptions and donations. It’s challenging but also motivating us to build a sustainable model.
News Directory 3: Following Paddy Cosgrave’s return as CEO in April 2023, have there been any discussions about restoring the funding relationship with The Ditch?
Eoghan McNeill: There haven’t been any formal discussions about restoring funding. Web Summit has confirmed that the funding relationship is over. We respect their decision but are focused on our own path forward. Our priority is to fortify our membership and enhance our community of readers who believe in our mission.
News Directory 3: How has your organization adapted financially since losing the backing from Web Summit?
Eoghan McNeill: We’ve leaned heavily on growing our subscriber base and enhancing our appeal to donors who share our values. It’s a continuous effort—engaging our audience and making sure we provide valuable content they want to support. We believe in transparent funding models, and community support is crucial for us.
News Directory 3: The financial health of Web Summit appears to be improving, yet The Ditch operates independently. What are the future plans for The Ditch as you navigate these challenges?
Eoghan McNeill: We’re focusing on diversifying our revenue streams beyond subscriptions. This includes exploring partnerships and sponsorships that align with our values. We also plan to invest in our reporting staff to ensure we can continue to produce high-quality journalism. We have ambitious goals, and our commitment to transparency will continue to guide us.
News Directory 3: Lastly, with significant political and economic changes happening globally, what do you think is the role of organizations like The Ditch in today’s society?
Eoghan McNeill: Organizations like ours play a crucial role in democracy by ensuring the public remains informed and engaged. We highlight issues that may be overlooked and provide in-depth analysis that goes beyond headlines. Our mission is to empower citizens to understand the complexities of their societies and make informed choices. As challenges arise, accountability will be more necessary than ever, and we aim to be at the forefront of that effort.
News Directory 3: Thank you, Eoghan, for sharing your insights and experiences with us. We look forward to seeing how The Ditch evolves in the coming years.
Eoghan McNeill: Thank you for having me. It’s been a pleasure.
Staff costs rose by €4.5 million, leading to an EBITDA of €0.3 million and a pre-tax loss of €5.6 million for 2023. Cosgrave stated that hiring more staff was essential for growth, and they are forecasting a profit of €4-5 million this year.
Web Summit hosts events in Lisbon, Doha, Rio de Janeiro, and Vancouver. It reported a 14% revenue increase to €60 million and 128,000 attendees in 2023. Cash reserves grew from €19 million in 2022 to €31.2 million. The amount due within a year rose from €22 million to €34.6 million, with total assets less current liabilities increasing to €16.9 million.