Money flows as conventions unfold, and another kind of politics is played
Published 6:00 pm Thursday, July 21, 2016
- A right-field banner welcomes Republicans to Progressive Field during a fundraiser held Wednesday.
CLEVELAND – Six hours before the first speakers took the podium at the Republican National Convention, politics was being played in Cleveland’s baseball stadium next door.
More than a dozen people in business clothes – some of whom acknowledged they were lobbyists – hobnobbed over hotdogs and beer.
Two former Cleveland Indians, Joe Charboneau and Len Barker, signed autographs at an outdoor bar overlooking first base. Logos of companies sponsoring the event rotated on monitors around the bar.
What troubled some good government groups were the names of those sponsors — companies such as Comcast, AT&T and Microsoft.
According to an invitation, the fundraiser was held in honor of Republicans on the the House Energy and Commerce Committee, which handles issues affecting those companies. It also honored members of a Congressional Republican baseball team that plays an annual game with Democrats.
Craig Holman, a lobbyist for the watchdog group Public Citizen, said such confabs are an example of the millions of dollars spent to peddle influence at the convention.
“You may not have seen actual lobbying. That doesn’t mean influence wasn’t being peddled,” he said. “The commerce committee knows which corporations are honoring them and befriending them.”
Money for charity
At Progressive Field on Monday night, Rep. Greg Walden, R-Oregon, chairman of the Communications and Technology Subcommittee, arrived late and stayed briefly to chat with a couple of people.
So did Rep. Bill Johnson, R-Ohio, also a member of the subcommittee that oversees the Federal Communications Commission, which regulates those companies’ activities.
LeeAnn Petersen, a consultant who organizes the event, said none of the tens of thousands of dollars raised goes to candidates or the Republican Party.
Money raised will instead go to charities, United Cerebral Palsy of Greater Cleveland, which was selected by committee members, and the Washington Literacy Center, which was picked by the GOP baseball team.
Walden said his godson has cerebral palsy, and addressing illiteracy is important in making sure voters are informed.
As Walden and Johnson watched, Petersen announced names of companies that bought baseball-themed packages that evening.
Microsoft bought the “Triple Package,” she said, to applause. According to a copy of the invitation posted by the Sunlight Foundation, the $15,000 sponsorship was supposed to merit 15 on-field batting practice sessions.
Petersen apologized that there would be no batting practice.
AT&T bought a $10,000 “Double Package,” she said, to more applause.
The Consumer Technology Association, whose members include Amazon, bought a $7,500 “Base Hit Package,” she said. Comcast picked up a $5,000 “Sports Fan” package.
Selling goodwill
None of those attending the event would talk on the record. The companies, the association and spokespeople for Walden and Johnson also declined comment.
Asked why people came to the event, Petersen said, “I couldn’t possibly guess what’s on people’s minds.” She then said she had to go because she was planning two other events.
Holman, though, said goodwill was for sale.
If the true motive was concern for people with disabilities or those unable to read, he said, companies could have given money directly to the charities that benefited.
The event and others like it “skirt ethics laws,” he said, because they honor a congressional committee. House rules don’t permit fundraisers held in honor of individual members, but those honoring entire committees are allowed.
The event also illustrates how much of what occurs during a political convention happens away from public view – even as cameras are on and speeches are being made.
In Cleveland, many restaurants near the Quicken Loans arena are closed throughout the week for private events.
On Thursday, the Pennsylvania and Kentucky coal associations held receptions.
On Monday, Texas delegate Rick Figueroa said he went skeet shooting with some members of Congress and lobbyists.
Receptions and outings – which frequently fete big donors and corporate sponsors – came this week as a backdrop to the Republican Party’s nomination of Donald Trump for president.
Early in the primaries, Trump drew many supporters by self-financing his campaign, promising not to be beholden to special interests.
Democrats’ fundraising
But these events are hardly a Republican endeavor. The Sunlight Foundation lists a number of similar events scheduled around the Democratic National Convention in Philadelphia next week.
On Sunday night, a reception will honor Democratic campaign and congressional staff at Bud & Marilyn’s, a downtown Philadelphia restaurant. Gold sponsors will pay $5,000, and silver sponsors $2,500.
Democrats have their own trip to a ballpark, in the All-Star Challenge at Citizens Bank Park next Tuesday. Sponsorship packages run between $5,000 to $50,000 to honor members of House and Senate energy and commerce committees.
Liberal groups including Planned Parenthood, the Progressive Action PAC and People for the American Way are holding fundraising receptions near the Democratic convention, as well.
Harold Feld, senior vice president of Public Knowledge, a liberal policy group that often opposes in debates the companies that sponsored the event at Progressive Field, said the fundraiser highlights a “gray area in the money/influence debate.”
“On the one hand, the money is not directly benefiting Walden, or any other individual or business. It goes to charity,” said Feld.
“On the other hand, it is clear that this engenders the kind of general ‘friendly feeling’ and appearance of cozy insider relationships that cause most people outside the Beltway to view our political culture as corrupt,” he said. “The fact that the same companies do similar events on the Democratic side doesn’t help with the appearance problem.”
Paying for conventions
In addition to those pools of money are millions of dollars being spent by corporations and individuals to pay for the conventions, themselves.
Until 2014, conventions were publicly financed by the federal government. Congress repealed the system, giving the tab to cities’ host committees and the Republican and Democratic parties, themselves.
Congress also raised the limit on contributions allowed to convention committees, to $100,200 per year.
This year’s Republican convention will likely to cost $81 million, according to an estimate by the U.S. Public Interest Research Group. Democrats are expected to spend about $65 million.
As the Republican convention gavels to a close Thursday, it’s still unclear who paid for all the fun.
Organizers do not have to disclose their donors for another 60 days.
Four years ago, AT&T and Cisco Systems each contributed $3 million toward the Republican convention in Tampa, according to U.S. PIRG.
Bright House Networks gave $2.5 million, and the American Petroleum Institute spent $2 million.
Conventions are part of the presidential campaign, Holman noted. And changing how they’re funded – away from the government – creates a way that “corporations can fund Republican and Democratic candidates,” he said.
Press reports note some companies this year backed off giving to conventions, for fear of associating with polarizing candidates, Trump and Democrat Hillary Clinton.
Instead, Holman said sponsors are helping pay for delegates’ expenses – support that does not have to be disclosed.
Kery Murakami is the Washington, D.C. reporter for CNHI’s newspapers and websites. Reach him at kmurakami@cnhi.com