Karl Rove
“Grassroots” Rove-linked group funded almost entirely by billionaires
Four of them, including three from Dallas, have put up 97 percent of the money for his new political operation
White House Deputy Chief of Staff Karl Rove laughs during a ceremony honoring the 2006 recipients of the Presidential Medal of Freedom in the East Room of the White House in Washington, December 15, 2006. REUTERS/Larry Downing (UNITED STATES)(Credit: © Larry Downing / Reuters) [UPDATED]Virtually all of the $4.7 million raised by Karl Rove’s new conservative outfit was contributed by just four billionaires, three of whom are based in Dallas, Texas, and two of whom made their fortune in the oil and gas industry.
The IRS filing of American Crossroads, an outside 527 group that was conceived by Rove and ex-RNC chair Ed Gillespie, gives a good taste of who is funding the GOP effort to make big gains in the House and Senate come the fall. The group has already burned through $600,000 on ads attacking Senate Majority Leader Harry Reid, who is facing a reelection contest against Republican Sharron Angle (see one of the spots below). Chaired by another ex-RNC chair, Mike Duncan, American Crossroads has pledged to raise $50 million to beat Democrats in the midterms and has been seen by some as a competitor to the Republican National Committee itself.
And despite the group’s description of itself as “grassroots,” Salon’s review of its IRS filings show that four billionaires have contributed 97 percent of the $4.7 million it has raised to date. There are no limits on how much corporations, unions, and individuals can donate to 527 groups. Here’s a guide to American Crossroads’ four donors:
- Trevor Rees-Jones, president of Dallas-based Chief Oil and Gas, gave a $1 million donation to American Crossroads just as the group was starting in April. That’s small money for Rees-Jones, who, Forbes estimated in 2009, amassed a $1.5 billion fortune investing in gas prospects around America. He has also been a big donor to John McCain and the Texas Republican Party, Politico reported.
- Bradley Wayne Hughes, chairman of Public Storage Inc, is American Crossroads’ biggest donor, contributing $1.55 million to date. Hughes founded Public Storage in 1972 and the company has grown into a self-storage behemouth with over 2,000 locations. Worth $3.9 billion, he lives in Lexington, KY, where he actively raises thoroughbred horses at Spendthrift Farm. (Hughes’ son, B. Wayne Hughes Jr., is on the board of former Senator Norm Coleman’s new conservative group, the American Action Network.)
- A company called Southwest Louisiana Land LLC donated $1 million to American Crossroads in June. It turns out Southwest, which doesn’t have much of a public footprint, is owned by Dallas billionaire investor Harold Simmons — no stranger to conservative causes. Since the 1980s, he has ponied up for everthing from Oliver North’s defense fund, to Newt Gingrich’s PAC, to the Swift Boat Veterans for Truth in 2004, to the American Issues Project, a group that ran ads attempting to tie Obama to Bill Ayers in 2008 (Simmons was the sole funder of the Ayers effort, giving nearly $3 million.) Simmons is worth $4.5 billion.
- TRT Holdings, owned by Dallas’ Robert Rowling, gave American Crossroads $1 million. Rowling, whose firm owns Omni Hotels and Gold’s Gym, got started at his father’s successful company, Tana Oil & Gas. He’s now worth $4.4 billion. In 2004 Rowling gave $1 million to Progress for America, an outside group backing President Bush’s reelection.
It’s also important to note that American Crossroads has set up a partner organization called American Crossroads GPS that, because it has a different tax status, does not have to reveal any donor information and is also more limited in spending its money on campaigns (Politico has more on this). American Crossroads GPS took in over $5 million in June, and we’ll likely nver know who is putting up the money.
Here’s one of American Crossroads’ ads against Reid:
UPDATE: Jonathan Collegio, spokesman for American Crossroads, sent over this statement arguing that the group has the same fundraising model as liberal groups, but the “major difference is that, unlike unions, we can’t tax our members to fund political activities.”
Like many groups on the liberal side of the political spectrum, we receive support from large, small and online donors – and while we are barely four months old, our membership is expanding rapidly, with more than one thousand people engaged with our social media efforts. The major difference is that, unlike unions, we can’t tax our members to fund political activities.
Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin More Justin Elliott.
Using Bush’s playbook
"Karl Rove politics" aren't quite dead: Obama's strategy in 2012 will mirror W's in 2004
George W. Bush and Barack Obama (Credit: Reuters/Larry Downing) Barack Obama’s presidency was born from nothing so much as his repudiation of George W. Bush’s administration — its policies and politics, its style and tone. One of Obama’s most effective 2008 stump speech refrains was his promise to end the era of “Scooter Libby justice, ‘Brownie’ incompetence and Karl Rove politics.”
But the political dynamics for winning a second presidential term often differ markedly from winning the first. So don’t be surprised by many eerie parallels between Obama’s 2012 reelection bid and Bush’s 2004 campaign. The president may not rely upon “Karl Rove politics” in the strictest sense, and nobody would confuse David Axelrod with Rove. But Obama’s reelection route and rhetoric may bear more than a few Rovian hallmarks.
Continue Reading CloseKarl Rove’s hissy fit: “Offended” by Chrysler ad
If Clint Eastwood sounded like Obama, it's because the GOP has ceded optimism to the Democrats
Karl Rove (Credit: Reuters/Fred Prouser) I admit it: Chrysler’s “Halftime in America” Super Bowl ad reminded me of President Obama’s best recent speeches. Actor Clint Eastwood, the face of rugged American individualism, talked about “tough eras” and “downturns” and “times when we didn’t understand each other,” but then declared:
Continue Reading CloseBut after those trials, we all rallied around what was right, and acted as one. Because that’s what we do. We find a way through tough times, and if we can’t find a way, then we’ll make one…
This country can’t be knocked out with one punch. We get right back up again and when we do the world is going to hear the roar of our engines. Yeah, it’s halftime America. And, our second half is about to begin.
Joan Walsh is Salon's editor at large. More Joan Walsh.
Meet Karl Rove’s Sheldon Adelson
Texas billionaire Harold Simmons has given $7 million to a Rove-affiliated outside group VIDEO
Karl Rove (Credit: AP) We’ve written a lot about Sheldon and Miriam Adelson and their $10 million in donations to a pro-Newt Gingrich super PAC. Part of the reason the Adelson donations got so much attention is that their existence was leaked to the media before the disclosure filing deadline. Since all super PACs were required to disclose their 2011 donors yesterday, we now have a much better picture of the other mega-donors who are in effect setting the agenda of the GOP primary.
Continue Reading CloseJustin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin More Justin Elliott.
Rove v. Trump: the unlikely war for soul of GOP
Bush's architect attempts to wrest back control of the party from a man simply out to make a buck
Karl Rove and Donald Trump (Credit: AP) Newsmax, a nutritional supplement sales organization and expensive email list with a right-wing news website attached, is hosting a Republican presidential debate, “moderated” by fictional television clown tycoon Donald Trump, set to air on a television channel you probably don’t actually know you have that spends most of the broadcast day airing paid programming. Historical fiction author Newt Gingrich — a disgraced serial adulterer with a still-unexplained $500,000 credit line at Tiffany and Co. who is also for some reason the current frontrunner for the party’s nomination — could not be happier. For some crazy reason, Republican campaign strategist Karl Rove is not particularly thrilled with all of this.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
Who’s winning the Fox primary?
The conservative cable channel treads carefully in Gingrich-Romney race
Newt Gingrich and Mitt Romney (Credit: AP) The Republican primary campaign has become a two-man race, with unloved ostensible front-runner Mitt Romney currently suffering the indignity of trailing in the polls to self-satisfied serial adulterer Newt Gingrich. Where does the unofficial communications arm of the conservative movement stand on the race? They’re noncommittal, thus far.
We all know the basic facts: A lot of conservatives see Romney as completely unacceptable. The more pragmatic ones see Gingrich as wholly unelectable. Fox News is run by consummate conservative elite Roger Ailes. Ailes has two objectives: Generate ratings and elect Republicans. The Gingriches of the world excite Fox viewers, because of their shamelessness. Romney excites no one, but he’ll need Fox’s support if he ends up the beneficiary of a Gingrich collapse.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
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