SMRs and AMRs

Tuesday, December 25, 2007

Democrats Try to Rein In Fees on Consulting

By CHRISTOPHER DREW
New York Times

It was the spring of 2004, and Senator John Kerry had just secured the Democratic presidential nomination. But as huge sums of money began pouring into his campaign, his top strategists had more on their minds than just getting ready for a tough race against President Bush.

Behind the scenes, they were fighting over the lucrative fees for handling Mr. Kerry’s television advertising. The campaign manager, Mary Beth Cahill, became so fed up over the squabbling that she told the consultants, led by Robert Shrum, one of the most prominent and highly paid figures in the business, to figure out how to split the money themselves.

Divvy it up they did. Though the final tally has never been publicly disclosed, interviews and records show that the five strategists and their firms ultimately took in nearly $9 million, the richest payday for any Democratic media consultants up to then and roughly what the Bush campaign paid its consultants for a more extensive ad campaign.

Mr. Shrum and his two partners, Tad Devine and Mike Donilon, walked away with $5 million of the total. And that was after Ms. Cahill, in the closing stages of the race that fall, diverted $1 million that would otherwise have gone to the consultants to buying more advertising time in what turned out to be an unsuccessful effort to defeat Mr. Bush.

Questions about how the Kerry campaign could have become such a bonanza for one small group of advisers — and whether the fees squandered money that could have been used for courting voters — are still reverberating inside Democratic circles as the 2008 campaign moves into high gear. And with more money than ever on the line this time around, resentment has been building, donors and other operatives say, at how, win or lose, presidential elections have become gold mines for the small and often swaggering band of media consultants who dominate modern campaigns.

As a result, the Democratic presidential hopefuls are seeking to impose more controls on the consultants. In doing so, they are moving more into line with their Republican counterparts, who by and large have kept tighter rein on how they handle their media teams, which shape the candidates’ messages, produce their television ads and buy the air time.

(Continued here.)

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