Billionaire donors helped Cruz rise in GOP presidential bid
ASSOCIATED PRESS
Republican presidential candidate Sen. Ted Cruz, R-Texas, left, is welcomed to the stage by radio and television personality Glenn Beck, right, at a rally at the Five Sullivan Brothers Convention Center in Waterloo, Iowa, Saturday, Jan. 23, 2016. (AP Photo/Andrew Harnik)
WASHINGTON >> Four of America’s wealthiest businessmen laid the foundation for Ted Cruz’s now-surging Republican presidential campaign and have redefined the role of political donors.
With just over a week until voters get their first say, the 45-year-old Texas senator known as a conservative warrior has been ascendant. The $36 million committed last year by these donor families is now going toward television, radio and online advertisements, along with direct mailings and get-out-the-vote efforts in early primary states.
The donors’ super political action committees sponsored rallies Saturday in Iowa featuring Cruz and conservative personality Glenn Beck. The state holds the leadoff caucuses on Feb. 1.
The long-believing benefactors are New York hedge fund billionaire Robert Mercer, Texas natural gas billionaires Farris and Dan Wilks, and private-equity partner Toby Neugebauer. They honed their plan to help Cruz before he began his steady rise in polls — even before he announced his presidential bid in March.
“No one wants to lose,” Neugebauer told The Associated Press when asked why he and others bet big on Cruz. “We didn’t miss that an outsider would win. I think we’ve nailed it.”
Voters will soon start determining whether he is right.
The groundwork laid by Neugebauer and other major donors began roughly two years ago, first in a casual conversation with Cruz at a donor’s home in Palm Beach, Florida, and then in a more formal way over the 2014 Labor Day weekend at Neugebauer’s ranch in East Texas.
That October, big-data firm Cambridge Analytica — in which Mercer is an investor — began working to identify potential Cruz voters and develop messages that would motivate them. Alexander Nix, the company’s chief executive officer, said the importance of this early work cannot be overstated. He credits Cruz for understanding this.
“Money never buys you time,” Nix said, drawing from his experiences with campaigns worldwide. “Too often clients will come to you just before an election and expect you to work miracles. But you cannot roll back the clock.”
Key donors soon came up with a novel arrangement: Each family would control its own super PAC, but the groups would work together as a single entity called Keep the Promise. They keep in touch through weekly strategy phone calls.
That’s not how super PACs usually work. More typically, multiple donors turn over their money and leave the political decisions to professional strategists. For example, Jeb Bush’s super PAC counts more than two dozen million-dollar donors.
For Cruz, the pool of really big donors is far more concentrated: Mercer gave $11 million, Neugebauer gave $10 million, and the Wilks brothers and their wives together gave $15 million.
That level of support has opened Cruz to criticism that donors are influencing his policies, whether on abortion, energy or the gold standard.
Ethanol advocates point to his oil and gas donors as the reason he wants to discontinue that government subsidy for the corn-based fuel. Cruz and the donors have dismissed that as nonsense. His campaign cites as evidence Cruz’s desire to end handouts to all parts of the energy industry.
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A GOLDMAN SACHS INTRODUCTION
Neugebauer said his belief in the candidate is both personal and pragmatic. “My heart and my mind told me he’s the one,” he said.
Mercer and the Wilks brothers declined to be interviewed.
Neugebauer, 45, said he met Cruz years ago through Cruz’s wife Heidi, then a manager at Goldman Sachs. He said he wants nothing in return if Cruz wins the presidency.
“I don’t need. Bob Mercer doesn’t need. The Wilkses don’t need,” he said. “That’s not what this is about. We do not want our children and grandchildren to grow up in a bankrupt country.”
Neugebauer co-founded Quantum Energy Partners, a private equity firm based in Houston. It invested heavily in shale development, which became lucrative with the advent of hydraulic fracturing, known as fracking.
His father, Randy, is a Republican congressman from Texas.
In 2014, the younger Neugebauer moved his legal residency to Puerto Rico, saying he had done so primarily to expose his children to Spanish and become more worldly. The U.S. territory also provides key tax breaks that the mainland does not.
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FATHER AND DAUGHTER
The Mercer family has followed Cruz’s rise in politics for years.
Fundraising records show that Mercer’s daughter, Rebekah Mercer, took an early interest in Cruz’s 2012 underdog campaign for the Senate. Her money arrived as Cruz was preparing to take on the state’s lieutenant governor and well-funded Republican Party favorite, David Dewhurst, in the May primary.
The elder Mercer, 69, is a former computer programmer and co-CEO of Renaissance Technologies, one of the country’s largest hedge funds. Mercer, who lives on New York’s Long Island, is intensely private. A review of his political investments provides some clues as to his policy interests.
He is a major donor to Republican groups, according to fundraising records, including entities run by the billionaire Koch brothers and Club for Growth, a Washington conservative economic group that backed Cruz’s 2012 campaign. Mercer has attended conferences promoting a return to the gold standard in monetary policy, which Cruz advocates.
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THE BROTHERS
The Wilkses met and became fond of Cruz after his election to the Senate, and Neugebauer persuaded them over barbecue in the first months of 2015 to participate in the Keep the Promise plan.
Farris and Dan Wilks made their fortune in fracking, producing drilling equipment when few were in that business. They sold their company in 2011 and have since become the country’s 15th biggest land owners, according to The Land Report magazine.
Farris Wilks is a pastor at a small church called Assembly of Yahweh, 7th Day, where his parents were founding members. Both brothers are fervently against abortion rights and gay marriage and say the country needs to embrace Christianity.
Cruz has pledged “outlaw” abortion and said the Supreme Court erred last year in making gay marriage the law of the land. The candidate and hundreds of religious leaders gathered last month at Farris Wilks’ central Texas ranch, an event hosted by Keep the Promise.
Farris Wilks has said his investment in the Cruz super PAC is helping “educate” voters.
“He’s not afraid to stand against some of his own party even and say things that need to be said,” he said in a November interview with KTXS, a television station near their tiny hometown of Cisco, Texas.
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THE MONEY FLOW
Although these donors set aside their millions for Cruz 10 months ago, it’s only now that the money is flowing into the 2016 race in a major way.
Since mid-December, the Keep the Promise super PACs have documented about $4 million in independent expenditures to help Cruz or attack other candidates — most often Florida Sen. Marco Rubio, federal election records show.
The super PACs have been identifying and connecting with Cruz voters through digital ads and door-knocking, and recently began a multimillion-dollar TV ad campaign. A Keep the Promise van tailed the Cruz campaign bus as it made its way through Iowa last week. Super PAC workers handed out thousands of “Choose Cruz” yard signs.
For the megadonors, it’s no surprise that Cruz seems to be well-positioned heading into the primaries. In mid-July, Keep the Promise posted on its website a slide-show presentation called “Can He Win?” The document predicted it would be “very difficult for Establishment to destroy the conservative challenger.”
61 responses to “Billionaire donors helped Cruz rise in GOP presidential bid”
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Money wise. Who can compete against Trump?
Trump: “I don’t need to stinkin’ donations. I got my own money.”
Yup, our current democracy. Money, money, money. That’s all you need to win.
Trump is so rich that he doesn’t even ask for his change back.
You’re wrong. Because DT has labled himself as the richest, he marginalized the potential to solicit uber donors. Moreover, while he has a large paper worth–it is just that–paper assets. What many do not realize is that much of his wealth is tied up in complex real deals in which he has large equity positions, complicated but a myriad of debt financing. Some of these deals leverage financing off of each other. In short, his ability to execute a position of liquidity is not straight-forward. Finally, I know one thing about DT–he does not want to spend his own money–and will not.
Many do realize that this is common among the rich. They excel is using other peoples’ money. So what’s the point.
The point is that it is not a simple as selling shares, he has to unravel these deals which could take 3-6 months, if he were actually willing to utilize his own funds–which he is not.
Clinton
He tries to say he’s an outsider, but he just another bought and paid for politician. Can’t stand Trump but at least he’s not beholden to donors….yet!
Money ain’t gonna supersede the lies coming from the elephant party.
I could say the Same:”Money ain’t gonna supersede the lies coming from the Donkey party.ie Hillary Clinton AND Even Barney Sanders….They ALL belong to these Super pacts and Mega donors.
More the reason to vote for Donald J. Trump… We definitely don’t need another “All talk and No Action” politician in the White House!Don’t get me wrong ,i like cruz, but he just doesn’t get along with both sides of Congress.
Enter: Donald Trump! This is where the Donald comes in. He’s a Deal Maker …….and not beholding to NO ONE !
There are still more poor citizens in America than rich ones.
Duuuuhhhhh.
There are
Sorry, meant to say there are more people of average/below average IQ than geniuses.
The sad fact of the matter, is that Paulh808, could never gain admission to either Columbia or Havard Law. I guess its rather tough to acknowledge that you have a middling intellect, and for fact, you make mediocrity a fairly lofty goal.
Winston should realize that IQ level doesn’t determine an election’s final outcome.
Paul. Welfare for the poor. Welfare for the rich. All pays the same.
Trump is not a politician. He is a business man looking for maximum profits according to his terms.
This is true.
Thank You, boolakanaka.
Well, it’s good to know that your vote for Trump won’t count for much here in Hawaii. And by the way, his first name is “Bernie”… but at least we know how much you REALLY know about him.
Barney is a better fit. Some folks have no sense of humor. Shows how little you really know.
I know that you defend dolts all the time and even support one for President, so why should this time be an different?
Hope you will enjoy having a dolt for president. btw I was defending Barney.
Suuuure you were… that’s why you threw an insult into YOUR comment, even though the original poster is the dolt that called him “Barney” and his super “pact”. Keep defending them, even though it makes you look that much more foolish. You call it “humor” when in actually it’s just your typical brand of partisan rancor. Trump will not be President. No way, no how…but you keep dreaming.
Bernie has a burning message for Wall Street.
Trump is doing ok. The dreams may just come true and become some folks worst nightmare.
Sarge. I thought Barney is your domain. You mean to tell me there is another Barney besides yourself?
Your bosom buddy Barney Frank. Bet you are sorry to hear he got married.
“Barney” Sanders? Low information voters, please just butt out.
Super PACs are prevalent in all political parties.
I wish that I was still working. I used to donate to the PAC.
This is not news. It’s pushing a political agenda
Let’s examine Hillary and every donor foreign ??? And domestic if you’re putting this stuff out
Let’s be fair in our reporting
Is this possible?
HERE, HERF!! ALL Politicians are owned by BIG MONEY–which/who they serve. Political-Office is simply a “Gateway” to an “Off-Shore-Retirement Account”.
You know? You can call Mr. Cruz many things. You might even call him American though Canadian would probably be a better description but to call him a “warrior” is an insult to all the real warriors who we should honor and venerate.
Cruz is covered in maple syrup from Canada.
Who made you the Warrior arbiter?
Chevrolet Cruze.
It’s just funny watching the GOP candidates try to out crazy each other to try and lure the far right wing voters who are looking for candidates like them who say anything to rile up the angry mob. After all the dust is settled, the GOP will probably be too damaged and splintered to win another presidency for many decades.
I’m OK with that.
After the Republicans damage each other, they will have act two. The suing each other off. Lights. Action. Camera. Take One….Cut. Very good, Republicans bashing each other. Didn’t even have to do practice.
The republican campaign has become a three ring circus with a clown leading the pack. You can say all you want about the democrats but at least they have been civil and generally respectful in how they relate to each other.
Republicans are always having a three some. Just keep your clothes on while in session.
Lapdog for four of America’s wealthiest businessmen, Ted knows his limitations. He will be their puppet to do whatever they tell him to. Like how they even write everything for him to say, ensuring his inability to hold an intelligent conversation is hidden from everyone.
Man is a total loser, no credibility, no ethical or moral integrity.
“Man is a total loser, no credibility, no ethical or moral integrity.” Oh, you’re worried about moral integrity. Does your concern extend to “what difference does it make” Clinton, the person who knowingly exposed national secrets above the top secret level and continues to lie about it?
You put your pants on the same way the rest go us.
I can smell the money from here. Smells good.
You just smelling your own tax money going to waste.
Oh, I smell those tax dollars. Obama spent $1.3 Billion dollars of those tax payer funds for his personal and family use in 2015–Google it!! Of course, he’s for the middle class–he has eliminated them.
I googled it and you are wrong learn how to comprehend what you read.
Bush must be the same since you failed to bring out his tax saving ways.
NITRO. Grammar is out. Bet you still are using your IBM typewriter with the round ball font?
Cruz could be Hillary’s son. And Trump’s uncle.
Kinda early to be hitting the sauce, don’t you think!
Nay, don’t mind him he is just bring funny. With all the odd candidates vying for the number one job we could use a good laugh! Have a good day you two!
I liked that TV ad about trying the FIRE taste from a fast food joint.
Headline says, helped. That is past tense for helping. Is the billionaire still helping?
When America finds out that the Republicans are just trying to buy your vote, they will turn away.
Billionaires trying to rig the GOTP nomination! My, what hss the country come to! Too bad the party itself can’t stand the guy (and with good reason).
Of course, Trump is a certified (and certifiable) member of the 1%. A phony populist who loves to stir up the rubes, but would leave them out in the cold if by some catastrophic breakdown of American democracy he were to buy his way to the White House.
Not that Hillary’s any better when it comes to the sources of her campaign funding. It’s hard to conclude that she wouldn’t be in the billionaires’ pocket too — different billionaires of course, different in the way that Ebola is different from the bubonic plague.
There’s only one true populist running this year. Only one candidate funding his campaign from a massive base of small donors. Only one who truly cares about the little guy. #FeelTheBern
Simple, money talk Kukai walk!