McCain, Paxson Were “Implacable Foes”

In the days after the New York Times published its non-blockbuster on John McCain and lobbyists, other news outlets followed-up, most of them focusing on one question: Did John McCain do special favors for Lowell “Bud” Paxson? To answer it, reporters largely focused on Paxson’s efforts to obtain a television station in Pittsburgh, Pennsylvania, and any role McCain might have played. The most damaging claim came from the Washington Post, which reported that McCain sent a letter to the FCC on Paxson’s behalf one day after flying to a fundraiser in Florida on a jet owned by Paxson’s lobbyists. It’s the kind of elbow-rubbing that is sure to come up again in the general election, especially as his opponent seeks to tarnish his image as a reformer. The reality, as the Post reporters pointed out, is far less damning. The letter from McCain didn’t go nearly as far as Paxson’s lobbyists had wanted. They sought a letter urging the FCC to side with Paxson. Instead, McCain lamented the bureaucratic slow crawl on the issue and urged a decision — any decision — be made quickly. All of this misses the point, suggests Forbes telecommunications writer Scott Woolley. He writes:

while Paxson was clearly anxious to curry McCain’s favor in the late 1990s, his major objective in Washington had nothing to do with winning approval to purchase a single TV station. Had the Pittsburgh deal gone through, it would have increased the number of Paxson-owned stations in the U.S. from 73 to 74. A far more pressing concern: Paxson Communications was hemorrhaging red ink. Operating losses for 1999 were up 65%, to a record $225 million, on $248 million in revenue. As the company’s business faltered, McCain, as chairman of the Senate Commerce Committee, was in a position to help Paxson win–or lose–billions. During the six-year-long fight that followed, McCain never wavered from his opposition to the legislation Paxson pushed, which would have diverted those billions into his company’s coffers and away from the U.S. Treasury. Whether McCain did any other, smaller favors for Paxson is a question that will draw new attention as the campaign heats up. But, at least on the issue of most consequence, the two strong-willed men were implacable foes.

Any story that can make the intricacies of telecommunications regulation comprehensible and interesting is a journalistic achievement. This one does both. Read the whole thing.

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