Dean paid $7.2 million to aide's company

[windansea]

Trippi consulting firm got nearly one-quarter of his television ad buys

By Lisa Getter
Los Angeles Times

February 8, 2004

WASHINGTON - As Howard Dean's presidential campaign tore through the millions it raised last year, nearly a quarter of it went to the company owned in part by his former campaign manager.
The campaign paid $7.2 million to Trippi, McMahon and Squier, the Virginia-based consulting and media firm - 23 percent of the $31 million it spent through Dec. 31, according to PoliticalMoneyLine, which tracks political spending.

Joe Trippi, one of the company's partners, was Dean's campaign manager for a year - until he was ousted last month and replaced by Roy Neel as chief executive. Dean asked Trippi to stay with the campaign as an adviser, but Trippi quit.

Instead of a salary, Trippi's company had been paid a commission of the campaign's television advertising buys - a percentage he and his company's partners said he never knew.

more...
http://www.baltimoresun.com/news/nationworld/bal-te.trippi08feb08,0,25744,print.story?coll=bal-nationworld-headlines

[pezcore64]

1. ...

its pretty messed up what happened.
almost seems like a set-up.


maybe we should check on Trippi and his background...

[windansea]

2. 23% seems awfully high n/t

[bigtree]

3. Almost a quarter of what was spent

of supporters money. This makes Dean a more sympathetic figure in my view. That money would sure come in handy now.

[pezcore64]

4. I wonder

I wonder why Dean doesnt try raising more than just a million on his website. Wasnt he raising multi-millions on it in the course of a week just over a month ago? I think he needs to challenge his people to come up with more money than 1.4 million dollars. He should shoot for another 15!!!

[nothingshocksmeanymore]

I read the entire article this morning and don't think it's all that bad

They miscalculated by spending as much as they did on air time but considering those figures and tha mount of TV coverage he got I don't think it's really too bad.

I think the MUCH bigger issue is the COSTS from American media to REACH people.....something that must be addressed in the future if we are ever really going to get HUGE money out of politics.

I don't fault Dean for doing this.

[Sensitivity]

22. As a contributor, I feel sick. Should explain this before taking more $

[dsc]

5. This is not uncommon

I am actually surprised it wasn't more. Usually all ad buys are through one company. He, nor his company, got all of that money. They were given that money to buy ads. Which they did.

[bigtree]

6. I believe that Trippi got over $3 million

[Hoppin_Mad]

10. Please document - The HIGHEST claim I've seen is 15% (of 7.2 mil)

[Sensitivity]

14. No. Prior report had Trippi firm got over $5m in commissions. It seemed

high at the time but it was not disputed.

[Hoppin_Mad]

16. I'd like to see that 'report' -nt-

[Feanorcurufinwe]

7. Trippi is the epitome of everything corrupt and slimey in politics.

One of the most successful confidence men in American history.

:puke:

[no name no slogan]

8. Trippi is part of the problem, not the solution

"Political consultants" and their ilk are part of money-politics-power complex that affects our civil society today. The reliance on these folk and their "focus group" mentality is why it seems that there's no good candidates anymore.

[AP]

13. That's not exactly the problem he's part of.

Circumstances dictate what campaign managers do. Don't hate the player, hate the game. If you want to win, you have to play according to the rules.

The problem Trippy was part of is, very simply, that he was wore two hats in this this campaign, and Dean shouldn't have let that happen. It's strange that Dean trusted everything to work out when there was such an obvious conflict of interest.

[Raya]

21. This is an Enron type scam. Big Boys keep their money, others hold the bag

[Hoppin_Mad]

17. Trippi's a fine man and did NOTHING wrong other than bad strategy -nt-

[Raya]

20. But explain his boys walking with $7mill of "little people's" money

[Hoppin_Mad]

23. LOL $6.7 Million went for ads - no one GOT $7.2 Million -nt-

[WiseMen]

27. Trippi could help Dem grass roots effort. And he can afford to!

[Renew Deal]

9. Trippi was paid more than $1 million more than what Kucinich has raised

:puke:

[ShaneGR]

11. Almost 25%, that's totally oulandish.... all of their careers are over

No one will hire them ever again.

Of course, they're rich now.

[Sensitivity]

12. 15% is Usually the absolute MAX. Must have tacked on "consulting fees"

[Sensitivity]

15. Looks like ALL the money raised went via Trippi Firm. Took share off top.

They should have put this out in the open from the start. Why is
Dean asking us for more money when some of us hardly have a few
hundred in our bank account. Why doesn't he renegotiate something
with Trippi.

[Hoppin_Mad]

24. How is 23% 'all' -nt-

[RetroLounge]

18. Yawn

:boring:

[Raya]

19. Is that another way of saying "BRILLIANT PLOY"

[Hoppin_Mad]

25. Don't you worry about us :-) ! We just gave another $1.1 million

Including $800,000 in one day. Those concerned with OUR fundraising might be better off focusing on their own lack of such.

[no name no slogan]

26. No, it's another way of saying "Pass the Kool-Aid" (n/t)

[w4rma]

28. Trippi Says His Work for Dean Cost Him Money - LAT (7% commission)

http://www.latimes.com/news/politics/la-na-trippi10feb10,1,3971379.story?coll=la-headlines-politics

(snip)

Joe Trippi, former campaign manager for presidential candidate Howard Dean, gave a spirited defense of his work for the foundering candidate Monday, saying that he lost money by devoting himself to Dean and that he planned to organize a broader political movement.

(snip)

Most of the money paid to Trippi, McMahon and Squier, a Virginia-based media and consulting firm, was used to buy airtime for Dean.

(snip)

After being questioned by a reporter on the matter Friday, Trippi said he contacted his colleagues and learned that they had charged the Dean campaign a 7% commission — which the firm said is less than half the typical 15% commission.

Trippi said his one-third share amounted to $165,000.

The campaign has also reported to federal regulators that it paid Trippi's firm $312,000 for political consulting, according to tabulations by PoliticalMoneyLine, which tracks campaign spending.

(snip)
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=132&topic_id=302808

[Raya]

29. That's not what the record shows. Trippi is not a credible source.

[w4rma]

30. Yes it is what the record shows. Read. (n/t)

[Raya]

31. Read What? Public record show what his company got. Simply no excuses

about off the record spending for x y and z. That is not how
it works. Media buys are made and ONLY the commission goes to the agent.

[w4rma]

32. Public record: commission = 7%.

...
After being questioned by a reporter on the matter Friday, Trippi said he contacted his colleagues and learned that they had charged the Dean campaign a 7% commission — which the firm said is less than half the typical 15% commission.

Trippi said his one-third share amounted to $165,000.

The campaign has also reported to federal regulators that it paid Trippi's firm $312,000 for political consulting, according to tabulations by PoliticalMoneyLine, which tracks campaign spending.
...

[Raya]

33. That is consulting fees NOT COMMISSION TO HIS COMPANY

Let's wait for official information rather that speading B.S.
excuses for a $41 million problem.

[w4rma]

34. "reported to federal regulators" (n/t)

[Raya]

35. Just Trippi's personal fees NOT WHAT WENT TO HIS PARTNER'S COMPANY 7MIL

[GumboYaYa]

36. The truth no longer matters at DU!

The faux anger expressed in this thread is amazing. It is a testament to the fervor with which some here will go to make other candidates look bad, regardless of the facts.

Campaigns generally do not place ad buys directly. This is also true of many companies. They place ad buys through PR firms. The PR firm gets paid a commission on the amount of the ad buys. Usually the commission is between 10 and 20 percent of the total buy.

Trippi's firm was one of the firms that was used to make buys and apparently about $7.0 million of the total buy was placed with Trippi's firm. He was paid a 7% commission on these buys, below the market rate.

There is absolutely nothing untoward here. In fact, Trippi's reduction of his commission below market rates is further proof of how strongly he beieves in the Dean candidacy.