Rivals say presidential hopeful Mitt Romney (R) is preparing for his biggest self-financing campaign loan yet — some estimate between $20 and $40 million — to be delivered in what could be the final competitive month of the primary season: January 2008.
Opponents’ campaigns are concerned that the former Massachusetts governor will tap into his substantial wealth yet again for one final push that would boost his campaign in the states holding the Feb. 5 primaries. Such a sizable loan could buy substantial advertising airtime on cable networks in several states simultaneously.
{mosads}“They are prepared for it because they think it is coming. It is a huge issue,” said a consultant close to former New York City Mayor Rudy Giuliani’s (R) campaign.
“It is something people are thinking about, or aware of,” said an aide to another opponent’s campaign.
Kevin Madden, Romney’s press secretary, did not deny such a loan was in the offing.
“I cannot predict what kind of personal resources the governor will commit in the future,” said Madden. He added that Romney is concentrating on expanding his own donor list.
“Our focus remains on maintaining and growing our successful network of volunteer donors,” he said. Madden also said Romney’s rivals, particularly Giuliani, should be doing better in their own fundraising efforts, considering their front-runner status and high name recognition.
Individuals close to rival campaigns would not detail how their candidates would plan to respond to such a loan.
If Romney signed off on such a loan in January, it would not have to be disclosed until Feb. 20. But if his campaign unleashes a flurry of advertisements in the Feb. 5 primary states, rivals might accuse the ex-Massachusetts governor of buying the election.
Romney’s net worth is estimated to be between $190 million and $250 million. As the former head of Bain Capital, a Boston investment firm, he is by far the wealthiest candidate in the race. If he won the White House, Romney would be one of America’s richest presidents.
The former governor has not been shy about applying his earnings to the presidential race, having self-funded close to $17.4 million so far. His self-financing has gradually increased ever since he officially announced his bid earlier this year. Romney gave his campaign $2.5 million of his own money in this year’s first quarter, followed by $6.5 million in the second and another $8.5 million in the third quarter.
“This campaign will not suffer for a lack of resources,” said Madden.
According to another source close to the Giuliani campaign, aides for the ex-mayor’s campaign expect Romney to commit up to $100 million of his own money to the race.
But while his loans increased, Romney’s fundraising has dipped. Romney brought in only around $10 million in contributions this quarter, less than his $20 million showing in the spring, which at the time bested the other GOP candidates. Giuliani won this quarter’s fundraising race, with more than $11 million in donations.
“Giuliani’s national name ID is worth $100 million, and we don’t have that,” said a fundraiser close to the Romney campaign.
The former mayor also has more cash on hand, around $16 million, while Romney has only $9 million available.
Nevertheless, the former governor has not stopped spending in his pursuit of the White House. According to data compiled by the Nielsen Company, Romney has placed close to 11,000 local television ads since the beginning of the year — more than any other two presidential candidates combined.
“Their attitude has been ‘We want to do well in the early states, and the hope is that it catapults us into the other states.’ I think that’s working,” said the fundraiser.
Romney’s loans have come under heavy criticism from other campaigns.
“There is little [other] choice than to write a big personal check to buy the forgiveness of those whose values you’ve personally offended,” said Karen Hanretty, a spokeswoman for former Sen. Fred Thompson’s (R-Tenn.) presidential campaign. She was referring to movement conservatives, who have been slow in warming to Romney.
But Evan Tracey, chief operating officer for TNS Media Intelligence/CMG, argued Romney’s loans have helped more than hurt.
“Romney’s money, his ability to self-fundraise, is keeping others’ finances in the bank right now,” said Tracey. He also argued that a big enough loan could act as a springboard for the ex-governor’s national campaign.
Romney “could buy, in essence, national cable. With that big of a wallet, he could buy network options,” said Tracey.
But how much the GOP candidate plows his own wealth into the presidential race is up to him.
“There is only one person who knows what he will put in, and that’s Romney,” Tracey said.