Research Briefing

With David Axelrod Appearance On “This Week,” Will He Be Asked About His Old Firms Reaping Windfall From His Boss’s P.R. Pushes?

Axelrod’s P.R. Firm ASK Public Strategies Opening New Office In Washington. “ASGK Public Strategies, the public affairs firm founded by David Axelrod, Eric Sedler and John Kupper, announced today the opening of its new office in Washington, D.C. as well as the naming of longtime campaign operative Larry Grisloano as a partner in the firm.” (Mike Allen, Politico Playbook, 10/15/09)

WILL AXELROD BE ASKED WHAT ROLE HE PLAYED IN PUSHING HEALTH CARE REFORM ADVERTISING BUSINESS TO OLD FIRMS?

White House Helped Coordinate “Multimillion Dollar Advertising Campaign” To Promote Health Care Push. “At a meeting last April with corporate lobbyists, aides to President Barack Obama and Sen. Max Baucus (D-Mont.) helped set in motion a multimillion-dollar advertising campaign, primarily financed by industry groups, that has played a key role in bolstering public support for health care reform.” (Ben Smith & Kenneth P. Vogel, “Exclusive: How Dems Set Stage For Corporate-Backed Health Care Campaign,” Politico, 10/16/09)

• White House Helped Coordinate Efforts Of Americans for Stable Quality Care And Previously Healthy Economy Now. “The previously undisclosed meeting April 15 at the offices of the Democratic Senatorial Campaign Committee led to the creation of two groups — Americans for Stable Quality Care and a now-defunct predecessor group called Healthy Economy Now — that have spent tens of millions of dollars on TV advertising supporting health reform efforts.” (Ben Smith & Kenneth P. Vogel, “Exclusive: How Dems Set Stage For Corporate-Backed Health Care Campaign,” Politico, 10/16/09)

Health Economy Now Paid AKPD And Another Firm To Produce Ads Echoing White House Talking Points. “The two firms were hired to make the health-care ads by a pair of linked coalitions supporting Obama’s health-care overhaul proposal — Healthy Economy Now and a newer offshoot unveiled last week called Americans for Stable Quality Care. The Associated Press reported this month that Healthy Economy Now paid AKPD and GMMB to produce a $12 million national ad campaign echoing White House talking points supporting the health care overhaul.” (Kenneth P. Vogel, “David Axelrod's Ties Targeted In Health Fight,” The Politico, 8/19/09)

“Neither Coalition Would Reveal How Much AKPD Or GMMB Was Paid For Its Work On The Ads.” (Kenneth P. Vogel, “David Axelrod's Ties Targeted In Health Fight,” The Politico, 8/19/09)

• White House Allies In Health Care Overhaul Push Have Spent Over $24 Million In Ad Buys. “Critics of President Obama’s health-care overhaul are zeroing in on his senior adviser David Axelrod, whose former partners at a Chicago-based firm are the beneficiaries of huge ad buys — now at $24 million and counting — by White House allies in the reform fight.”  (Kenneth P. Vogel, “David Axelrod's Ties Targeted In Health Fight,” The Politico, 8/19/09)

Healthy Economy Now Claims They Did Not Chose AKPD Based On Connections Between Axelrod Or The White House. “Spokesmen for Healthy Economy Now and Americans for Stable Quality Care said their groups paid AKPD and GMMB to produce the ads because they are considered top ad firms, not because of any connection to Axelrod or the White House.” (Kenneth P. Vogel, “David Axelrod's Ties Targeted In Health Fight,” The Politico, 8/19/09)

Ethics Expert Says Deputy Chief Of Staff Jim Messina At Coordination Meetings Raises Issues. “One ethics expert, however, said the meeting still raises issues. No matter how careful Messina and Selib were to avoid conversation about Healthy Economy Now, their mere presence at what proved to be the coalition’s creation raises questions, said Bill Allison, a senior fellow at the Sunlight Foundation, a nonpartisan, nonprofit group that advocates for greater transparency and ethics in government.” (Ben Smith & Kenneth P. Vogel, “Exclusive: How Dems Set Stage For Corporate-Backed Health Care Campaign,” Politico, 10/16/09)

WILL AXELROD BE ASKED HOW MUCH ASK/AKPD MADE FROM CHICAGO OLYMPICS BID?

Obama White House Played “Unprecedented Role” To Support Failed Bid Effort. “The Obama White House is playing an unprecedented role in the bid to bring the 2016 Summer Olympics to Chicago, with top adviser Valerie Jarrett spearheading an effort that draws on the international symbolism of his presidency.” (Kenneth P. Vogel, “White House Lobbies For Olympics In Chicago,” Politico, 5/12/09)

Axelrod’s Former Firm Paid To Do Communications Work For Bid Committee, Chicago 2016. “A.S.K. Public Strategies, the Chicago-based corporate public relations company founded by Obama political guru David Axelrod, has been paid ‘a nominal amount of money’ by Chicago 2016 to do ‘communication management [and] communication planning,’ said former Axelrod partner Eric Sedler.” (Kenneth P. Vogel, “White House Lobbies For Olympics In Chicago,” Politico, 5/12/09)

Chicago 2016 Faced Criticism That Bid Process Was “Shrouded In Secrecy.” “Chicago 2016 chief executive Patrick Ryan said the bid team wants IOC members, who will select a host city Oct. 2 in Copenhagen, to know they've cleared several hurdles, including getting the City Council's blessing for the mayor to sign the controversial host-city contract -- which puts taxpayers on the hook if a Chicago Olympics ended up losing money. The mayor's announcement in June that he would sign the agreement was a surprise, fueling criticism that the process was shrouded in secrecy. Even some of the aldermen were ticked off, and a ward-by-ward community meeting blitz followed.” (Lisa Donovan, “Olympic Debate Amps Up,” The Chicago Sun-Times, 9/6/09)

• Chicago 2016 Chairman And CEO Patrick Ryan Opposes City Oversight Of Olympic Spending And “Shot Down Repeated Demands That Chicago 2016 Subject Itself To Freedom Of Information Requirements.” “Ald. Manny Flores (1st) introduced an even tougher ordinance that would empower the city's inspector general to monitor Olympic spending and give aldermen oversight over Olympic contracts. But Chicago 2016 Chairman Pat Ryan warned, ‘You have to be very careful that we don't get too many cooks in the kitchen. . . . Bureaucracies can actually stop progress.’ Ryan also shot down repeated demands that Chicago 2016 subject itself to Freedom of Information requirements.” (Fran Spielman, “A Games About-Face For Council?” The Chicago Sun-Times, 9/2/09)

JUST HOW MUCH HAS ASK/AKPD EARNED THANKS TO HIS RELATIONSHIP WITH OBAMA?

Before Joining Obama Administration, David Axelrod Ran P.R. Firm Making Millions By “Manufacturing Public Support.” "Axelrod operates … ASK Public Strategies, that discreetly plots strategy and advertising campaigns for corporate clients to tilt public opinion their way … ASK has made a name for itself in shaping public opinion and manufacturing public support …’ ASK's relationship with ComEd goes back much further: The Chicago-based utility says ASK has been an adviser since at least 2002 … After a complaint was filed with state regulators, ComEd acknowledged that it had bankrolled the entire $15 million effort. (Howard Wolinsky, "The Secret Side Of David Axelrod," BusinessWeek, 3/14/09)

In 2008, The Obama Campaign Paid AKPD $2.77 Million In Fees. “Last year, the Obama campaign paid $2.77 million in consulting fees to AKPD and $340.53 million to GMMB to produce and place ads, Federal Election Commission records show.” (Timothy J. Burger, “Obama Campaign Ad Firms Signed On To Push Health-Care Overhaul,” Bloomberg, 8/15/09)

From January Through July 2009, DNC Paid At Least $296,785.50 To AKPD Message And Media, David Axelrod’s Old Firm. (Federal Election Commission Website, www.fec.gov, Accessed 8/20/09)

AKPD Still Owes Axelrod $2 Million And Employs His Son. “It revolves around two separate $12 million ad campaigns advocating Obama’s health care plan that were produced and placed partly by AKPD Message and Media, a firm founded by Axelrod that employs his son and still owes Axelrod $2 million.” (Kenneth P. Vogel, “David Axelrod's Ties Targeted In Health Fight,” The Politico, 8/19/09)

• AKPD Owes Axelrod $2 Million Starting December 31. “The firm owes Axelrod $2 million, which it’s due to pay in installments beginning Dec. 31.” (Timothy J. Burger, “Obama Campaign Ad Firms Signed On To Push Health-Care Overhaul,” Bloomberg, 8/15/09)

AFL-CIO Is A Client Of Axelrod’s Old Firm AKPD Message And Media. (AKPD Website, http://akpdmedia.com/clients, Accessed: 10/16/09)

• AFL-CIO Expects Card Check To Bring About 60 Million New Members. “Stewart Acuff, special assistant to AFL-CIO president John Sweeney, said the 428,000 new members last year is just a small portion of what unions could recruit if the card check bill passes. He cited union surveys showing nearly 60 million people would join a union ‘if there was no fear and intimidation.’” (Sam Hananel, “Union Membership Rises For Second Straight Year,” The Associated Press, 1/28/09)