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February 1st, 2023:

January 2023 campaign finance reports: Harris County

Feb 1st, 2023
by Charles Kuffner.
2 comments

Previously: City of Houston

January 2022 reports are here, July 2022 reports are here. I did not get around to doing the 30-day and 8-day reports from 2022, so what you see here in these reports is not contiguous for those who were on last November’s ballot.

Lina Hidalgo, County Judge

Rodney Ellis, County Commissioner, Precinct 1
Adrian Garcia, County Commissioner, Precinct 2
Tom Ramsey, County Commissioner, Precinct 3
Lesley Briones, County Commissioner, Precinct 4

Kim Ogg, District Attorney
Christian Menefee, Harris County Attorney
Ed Gonzalez, Sheriff
Joe Danna, Sheriff
Ann Harris Bennett, Tax Assessor

Alan Rosen, Constable Precinct 1
Jerry Garcia, Constable Precinct 2
Sherman Eagleton, Constable Precinct 3
Mark Herman, Constable Precinct 4
Ted Heap, Constable Precinct 5
Sylvia Trevino, Constable Precinct 6
Phil Sandlin, Constable Precinct 8

Teneshia Hudspeth, County Clerk
Marilyn Burgess, District Clerk
Carla Wyatt, County Treasurer

Alexandra Mealer, County Judge
Jack Cagle (SPAC), County Commissioner, Precinct 4
Steve Radack


Name             Raised      Spent    Loans    On Hand
======================================================
Hidalgo         612,111  1,095,479  101,400     36,568

Ellis            40,800    443,116        0  3,543,358
Garcia, A       175,027    340,089        0    291,697
Ramsey          550,625    149,433        0    944,935
Briones         819,495    331,782        0    667,234

Ogg             161,659     19,356   48,489    242,159
Menefee          36,826     30,700        0    193,291
Gonzalez              0      4,032        0      9,258
Danna             1,983     19,814   18,452        982
Bennett               0      1,022        0     14,527

Rosen           717,202     84,691        0  1,322,398
Garcia           33,177      8,498        0     54,177
Eagleton         51,665     23,158  119,650     59,159
Herman                0     96,574        0    518,009
Heap                  0     69,735   18,880     68,808
Trevino           3,150      4,270        0     26,871
Sandlin          38,580     28,502        0     79,998

Hudspeth          4,660     22,009        0      9,952
Burgess             940     14,710    5,207      5,403
Wyatt             1,950      2,110        0      2,258

Mealer          356,684    621,482        0    188,512
Cagle            64,225    186,970        0      5,056
Radack                0     71,246        0    794,652

I included Mealer and Cagle for post-election inclusion mostly out of curiosity. Jack Morman did not have a report filed or I’d have included him as well. Cagle’s July report showed over a million bucks on hand. Life comes at you fast. (Except for Steve Radack, who still has a nice chunk of change in his account.) On the other side of that, you can see that Judge Hidalgo left it all on the field. She’ll have plenty of time to build that treasury back up; she did a pretty good job of that this cycle, so I’d expect to see her total tick up in short order. I didn’t look closely at new Commissioner Briones’ report, but I’d bet a nice lunch that a substantial chunk of her cash arrived after the election. It’s good to be a Commissioner.

I don’t think I’ve seen reports for District Attorney on the county election site before. DA is technically a state office – for smaller counties, the DA can cover several of them at once – so I’d normally expect to see them on the Texas Ethics Commission site. Not that I’m complaining. I figure it’s just a matter of time before incumbent DA draws a primary challenger or two, so we’ll want to keep an eye on her fundraising totals. Nothing else of great interest in this group – I’d expect both Ed Gonzalez and Christian Menefee to start posting bigger numbers soon. As for Joe Danna, is there ever a time when he isn’t running for Sheriff?

I don’t know if we will get Constable/JP redistricting, but there are always some interesting primary contests here, and even with the same maps we could have interesting November races in Precincts 4 and 5. Along those lines, I note two potential future Constable candidates: Don Dinh, a Deputy Constable in Precinct 1 since 2020 who was for 24 years before that a sergeant in the Fort Bend County Precinct 2 Constable’s office, filed a designation of treasurer to run for Constable in Precinct 5. I’m going to guess he’d run as a Democrat, but I can’t say for sure at this time. A William Wagner, about whom I could find nothing, filed the same for Constable in Precinct 7. He would almost surely run as a Dem in this heavily Democratic precinct.

Oh, and the second place where there might be a Democratic primary fight worth watching is in Precinct 1. Alan Rosen had his eye on the Sheriff’s office back when Ed Gonzalez was a nominee for head of ICE, but that’s off the table now. He may or may not seek to run for something else – do remember that the minute he says something to that effect he’ll have to resign, so all we would have before then is speculation – but either way I won’t be surprised to see some competition for the Precinct 1 slot. One of his top staffers ran against Judge Hidalgo in the 2022 Dem primary, and I imagine there will be some kind of response to that. That would not be a cheap race as things stand now, as you can see.

Not much else to say at this time for 2024, but I will note that at least some of the Democratic judges whose election is being challenged by a sore loser are raising funds for their legal defense. If you have a favorite or two among them and a few bucks to spare, I’m sure they’d appreciate a contribution.

Paxton seeks settlement with some of the whistleblower plaintiffs

Feb 1st, 2023
by Charles Kuffner.
Comments are off for this post

Very interesting.

The only criminal involved

Texas Attorney General Ken Paxton’s legal team is in settlement negotiation talks with three of the four former employees who filed a whistleblower lawsuit against him for firing them after they accused Paxton of criminal acts.

Paxton’s lawyers, in a joint filing last week with attorneys for Mark Penley, David Maxwell and Ryan Vassar — Paxton’s former deputies — asked the Texas Supreme Court to put the whistleblower case on hold to give the parties time to negotiate a settlement. The lawyers wrote they were “actively engaged in settlement discussions” with mediation set for Wednesday.

Lawyers for a fourth plaintiff, Blake Brickman, opposed the motion in their own filing and urged the court to move forward with its consideration. The news was first reported by The Dallas Morning News.

[…]

Paxton has argued in state court that he is exempt from the Texas Whistleblower Act because he is an elected official, not a public employee and that he fired them not in retaliation for their complaint, but because of personnel disagreements. An appeals court has ruled against him and allowed the case to move forward. But last January, Paxton appealed his case to the Texas Supreme Court.

The joint filing by Paxton’s lawyers and the three plaintiffs says the court should defer its review of the case until Feb. 9 to give the parties an opportunity to resolve the issue outside of the courtroom.

Paxton’s office did not immediately respond to a request for comment.

Brickman’s lawyers, Thomas Nesbitt and William T. Palmer, said in their filing that Paxton’s team has been delaying the case for two years and “there is no reason for abating this case.” They argued that the other plaintiffs sought the pause only because they intended to settle the case, but since Brickman was not involved in those negotiations, his claims still needed a quick resolution.

“Brickman respectfully requests that this Court deny the request for abatement,” they wrote. “It imposes further needless delay of the adjudication of Brickman’s claim.”

See here for my last update, in June. I am unabashedly rooting for Blake Brickman here. I respect that Messrs. Penley, Maxwell, and Vassar wish to settle. If they think that’s in their best interests, then godspeed and good luck. But if Brickman wants to pursue the case, there’s no reason to make him and SCOTx wait until they come to an agreement – if indeed they do. The question of whether Paxton as Attorney General can be sued at all in this context matters, and we deserve to get a ruling on that. (Yes, I may end up regretting this request, but such is life.) From a slightly more selfish perspective, the only way to ensure that the more sordid allegations from this complaint get an airing is if there’s a trial. Sure, if the FBI ever charges Paxton with a crime we may find out more, but given how long that has already taken and the amount of time Paxton has been able to evade trial for his state crimes, we may all be dead by the time that happens. So yeah, let this lawsuit continue. We all deserve some answers.

A brief digression on baseball broadcasting and leveraged buyouts

Feb 1st, 2023
by Charles Kuffner.
Comments are off for this post

I call your attention to this fine article about some current baseball-business news, which among other things helped me better understand some business lingo.

Diamond Sports Group, the company that owns Bally Sports Network and thus the rights to 14 teams’ local broadcasts (plus minority stakes in two team-owned broadcasts)*, is careening towards bankruptcy. Per Bloomberg, the actual bankruptcy declaration is merely a formality: the firm will reportedly skip an interest payment due in February, triggering a restructuring that will wipe out the firm’s existing equity and convert all but the most senior debt into equity stakes in the new company, leaving its current creditors in charge.

That’s a shocking turn of events for a media group that sold for more than $10 billion in 2019. Heck, it’s a shocking turn of events for a company that made more than $2 billion in revenues in the first nine months of 2022, and more than $3 billion in 2021. It might also affect long-term cashflows for every team in the league; after all, local broadcast rights are a key piece of the revenue pie, and broadcast rights have exploded along with MLB revenues in the past decade.

How could this have happened? Which teams will be impacted, and what will that impact be? How will the league adapt to the new media landscape brought on by this bankruptcy and any subsequent dominos that fall as a result? I don’t have the answer to all of those questions, but I’ll walk through each in turn before speculating about what might happen next.

The easiest thing to figure out is how this happened. In early 2019, Sinclair Broadcast Group purchased the Fox Sports Networks brand and its associated networks from Disney as part of Disney’s acquisition of 21st Century Fox. They bought it via a subsidiary called Diamond Sports Group, which is an annoying bit of corporate legerdemain that allowed Sinclair to keep the business at arm’s length and decline to backstop it if things went wrong. That set this entire chain of events into motion.

See, Sinclair didn’t buy this large collection of regional sports networks with cash. They used some financial sleight of hand known as a leveraged buyout. They paid $9.6 billion to Disney for the business (other investors put in $1 billion to make the aggregate purchase price $10.6 billion), but they didn’t do so by peeling an unending string of crisp new hundreds from their wallet. They only put up $1.4 billion of their own money, in fact. The remainder was covered by $1.8 billion in senior debt, $3.1 billion in secured debt, and $3.3 billion in a subordinated term loan facility (read: $8.2 billion in borrowed money).

In some sense, this bankruptcy was preordained. When Sinclair opted for a debt-enabled purchase, they considered these risks extensively. In fact, there’s no doubt about the way they thought. Scour the prospectus for one of the notes they issued, and you’ll find 22 references to bankruptcy, as well as an interest rate that assumed some chance of default. That’s hardly unusual in debt financing, but the point remains: behind all the ponderous wording that pervades financial documents, these bonds were issued and purchased with the understanding that Diamond Sports Group might not be able to make all of its payments. One peek at their financial reports could tell you that.

It’s good stuff, so read the rest. And no, the Astros are not among the teams whose local broadcast revenue is affected. Those of you who grimaced at the mention of Sinclair Broadcasting should get a bit of schadenfreude out of it by the end. Awful Announcing and Pinstripe Alley have more.