Any smart blogger knows when to call in the troops for assistance. And after reading
this post on
BBA about how
Kagen invoking the Millionaire's Amendment is somehow a fantastic thing for John Gard, well, it just didn't wash in my mind.
So instead of muddling through it, I made a call to a good friend, let's call this friend GOP Federal Insider #3. Insider #3 spent many years making a living doing finance for high-profile GOP candidates.
Last night, I asked my friend to read the post and give me a take on how this will all play out in the coming weeks. And without further ado, here are said friend's collected thoughts on
Kagen, Gard, the Millionaire's Amendment, and all the crap that goes with bringing in the money.
Enjoy.
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First, let's be clear that the post you had me read shows a fundamental misunderstanding of the MA. The MA only gives Gard increased individual contributions and coordinated spending up to the amount that is basically equal to whatever
Kagen gave himself, minus whatever Gard may have given himself. There's a formula, but it's not worth getting into. What matters is that Gard's
FEC Form 11 has
Kagen pegged at $702K and change.
Kagen timed this thing like he should have. His campaign probably had a plan to use personal money to make their final big round of ad buys if they weren't at their fundraising goals. No doubt that's what he's spending the $470K on, unless he's buying a building in which to make
GOTV calls. And remember,
Kagen's gotta play to win at this point if he has any hope of getting that money back. If he doesn't win, wish him luck trying to recover the $2M he's loaned himself. Defeated millionaires have a harder time raising money than millionaire incumbents.
Kagen can begin spending his $470K the moment he donates it. Doing it on Friday screws over Gard's fundraising staff. Have you ever tried making money calls between end of business Friday and Monday morning? Unless they're close friends, most people don't want to be hit up for cash on the weekend. It's the weekend. They want you to leave them alone.
Can Gard find $700K? Well, he's raised $2M so far, so this is asking him to raise 35% of what he's taken in. Steep task, but it'd easily be doable if Gard had more time.
But that's the problem. He really doesn't have a lot of time.
First, Gard is probably going to have to put in some serious phone time to make it happen. Asking a husband and wife who are maxed out to give you another $8400 or $4200, or even just $2000, isn't a call you can have your assistant fundraiser make. If you know it's a slam dunk or a really
gung-ho supporter, maybe your finance director or even campaign manager can do it. If they were smart, they would have alerted their donors to this prospect the moment
Kagen won the primary, and gauged if they could come back for more should something like this happen. That way they've got a list of easy money.
Otherwise, the candidate's gonna be on the phone. And for every hour the candidate's on the phone, he's not meeting voters or doing something else. Raising money is the last place you want your guy two weeks out. And it's gotta be by phone, unless you already had a big fundraising event planned for this week. I doubt Gard had more than one event this week - smart, effective campaigns wind fundraising down by the end of last week, because...
At this point in a cycle all you're really buying is airtime. You aren't buying lit or yard signs - you've got all that crap already. You're buying TV and radio. Most TV and radio stations line up their ads 5 days ahead. That means the drop dead date for buying airtime before the election is probably this Thursday - maybe Friday AM at the latest.
For those who have not been involved in a big time campaign, with major media buys, all you need to run an ad is money and an ad - but it's not that easy. Right now, Gard's media people and campaign manager know how much they want to spend on ads Monday 10/30 through Sunday 11/5. They have a number. And they need to have that number on hand by the time campaign staff make the deposits on Thursday. So Thursday at noon the campaign manager gets his/her email with the daily totals, and a bank account balance. Then they decide how much money to spend on ads. Once that is done, the campaign wires the funds from the bank account to the account of their media firm. Sometime that afternoon the media firm then contacts the TV and radio stations with the ad buy and wires them the money or sends them a certified check via Fri AM Fed Ex.
That means that all of Gard's new money has to be in by Thursday morning. Anything received on Friday or over the weekend is only good for Monday 11/6 and Election Day media or paying the caterer for the election party.
So time is of the essence and my guess is that as of right now, Gard is pretty tired of reaching voice mails. However, a sore ear isn't his only problem today.
Look at that district - between the 8
th CD, the Gov race, the AG race, and the gay marriage amendment, most of the good ad time is gone already and
Kagen's gonna use that $470K to buy everything that's left. Anyone buying on Thursday probably won't be debating between the ABC and NBC local news, they're going to be debating between Iron Chef and the 2 AM rerun of Colbert.
So Gard's probably glued to the phone. Unless he's going to arrange himself a huge loan and pay himself back later (or take a boatload of coordinated party money), he's going to need these checks in his bank account no later than Thursday Morning. Smart donors would put it on a credit card - it processes faster. Of course, credit card companies skim 7% off the top, and that's if you have arranged a good agreement with them. 7% suddenly makes an $8400 donation $7800.
But a lot of these people like to write checks. It's just what they're used to. If Gard is going out of state, he's going to need people to overnight the checks, which is a pain in the ass, unless their secretaries do it. But it's the only way the money's gonna get there on time. He needs the money in the bank on Thursday to be able to wire the money to the media firm so the firm can do the ad buys on that afternoon.
In other words, John Gard pretty much has 48-72 hours to raise $700K. I think
Kagen looked at those numbers and liked his odds. Gard will make Dr. Millionaire jokes and
Kagen will come back with talking about Gard's raising all this money out-of-district. People hate millionaires and out-of-district money, so it's probably a wash.
Any money you have on hand a week out from the election is basically worthless. You've already bought everything that needs buying - air time, yard signs,
GOTV. It's done. At that point, it's all
GOTV, earned media, and trying not to get screwed by a last-minute surprise. And if you've blow all of your cash on hand on ads, there goes the the 10-20k of insurance cash needed to pay for the automated calls to let voters know that John Gard really isn't the cocksucker that
Kagen's campaign just said he is.
By the way, half a dozen other federal candidates dropped themselves mad money on Friday afternoon too, Republicans and Democrats.
Everyone's reading the tea leaves the same way on this.
Hope that helps. Good to see the Packers finally win one.
- GOP Federal Insider #3