The Republican 2016 contenders battled over money on Thursday, jockeying to cast imperfect third quarter fundraising reports in the best possible light.
In a series of afternoon press releases and snarky Tweets, the campaigns attempted to outflank each other on metrics like money raised, money banked and money spent (or, “burn rate”) plus investments in grassroots organization, data analytics and other items they claim will position their candidates for victory when the voting starts on Feb.1. Strengths and weaknesses dictated the message, as they aimed to intimidate rivals, impress neutral deep-pocketed donors and assuage nervous supporters.
“The whole idea that you could shock and awe folks with money is dead. People are responding much more to being shocked and awed by message,” said a Republican insider advising one of the candidates.
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Jeb Bush, the former Florida governor, raised $13.4 million from July 1 to Sept. 30, closing the three-month period with $10.3 million. Given Bush’s fundraising prowess earlier this year, when he raised around $100 million for a political group that became his independent super PAC, Right to Rise USA, after he became an official presidential candidate, opponents sought to paint Bush’s third quarter numbers as disappointing.
But in a lengthy campaign memo, Bush campaign manager Danny Diaz made the case that his candidate has spent wisely to build a superior political machine and grassroots organization that will carry him to victory in the early primaries and crucial states that vote in March and beyond. As if on cue, Right to Rise USA revealed that it was placing an initial television ad buy of $16.8 million in eight March states.
“We have more than $10 million cash on hand in primary dollars alone, and that comes after substantial investments in data and grassroots operations across the February and March states, as well as paid advertising in New Hampshire,” Diaz says in the memo.
The field remains crowded and competitive, led by two outsider, first time candidates: New York billionaire businessman and reality television star Donald Trump, who is self-funding his campaign, and retired pediatric neurosurgeon Ben Carson, who is raising money — and lots of it. Other candidates also had third quarters worth bragging about — Sen. Ted Cruz of Texas among them. And, even some with deflating numbers, like Sen. Marco Rubio of Florida, emerged financially strong and well positioned.
Carson’s haul was $20.8 million, per his Federal Election Commission filing. He spent $14.2 million, including $11.2 million on fundraising expenses, finishing the quarter with $11.3 million in the bank. Cruz raised $12.2 million, and closed the period with an imposing $13.5 million on hand. Rubio raised only $6 million, but reported $11 million in his coffers thanks to a miserly 40 percent burn rate. Carly Fiorina, the former CEO who recently catapulted into contention, raised $6.8 million.
“Gross fundraising totals are irrelevant in some ways,” said one Republican operative, who is neutral in the primary. “The important piece is cash-on-hand, and where investments have been made.”
The Republican field remains crowded and competitive, leading many big-money GOP bundlers and donors to stay on the sidelines until the fluid contest settles down. That uncertainty was underscored by the at-the-time surprise exits from the race of former Gov. Rick Perry of Texas and Gov. Scott Walker of Wisconsin. Walker raised $7.4 million despite not even competing for a full fundraising quarter, but was plagued by low poll numbers and a bloated, unsustainable operation.
The scramble for money and donors, fueled recently by the flood of former Walker financiers back into the donor pool, was a factor motivating the intense insider squabbling over the third quarter results that played out Thursday in the media.
Rubio’s press release highlighted his campaign’s spendthrift ways, citing Uber X and discount airlines like Frontier and Spirit as its choices for transportation, and Craigslist its go-to marketplace to purchase used office furniture. Bush spokesman Tim Miller responded with this Tweet: “Haven’t seen the Rubio press release on frugality did it include the $6 million in secret money TV ads they saved money on?” Miller was referring to the political nonprofit running television ads supporting Rubio.
Cruz spokesman Rick Tyler tweeted that CNBC, host of the next Republican debate, should position candidates on the stage according to their third quarter cash on hand figures. That would put the senator in the center stage, typically occupied by the leader in national public opinion polls. Cruz used an article in the Washington Post to detail its technologically innovative approach to fundraising in an effort to prove his credentials as a candidate who can go the distance.
“There’s plenty of cash waiting on the sidelines for a campaign with momentum,” said a Republican strategist raising money to support a 2016 candidate. “Donors aren’t yet sure how to handicap it all.”
Disclosure: The author’s wife worked as an adviser to Scott Walker
