Last updated on July 20, 2024
Addendum: Robert Kraus writes on Facebook on the LNC Business Discuss list: “They claim $200K+ in “hotel overcharges” & that they are working with “other campaigns” to get these bills taken care of. This does not include up to $100K for added security by various policing agencies. So not including anything Angela may have promised Trump/RFK like travel reimbursements – $200-300K plus just related to the extra space, extra a/v & extra security. Hoping the FEC Report tomorrow will shed light since we already know they had to re-do the May financials.”
The latest financial report is up on the LNC Public list. I will describe it in round numbers.
For the first half of the year, not counting the convention, the LNC lost close to $25,000 a month. Income other than the convention averaged $90,000 per month. That number was sustained by an increase in fundraising expenses from an average of under $40,000/ month in the first four months of the year to $60,000 per month in May and June.
The convention apparently grossed $570,000, but had $504,000 in expenses (to date), meaning the convention only netted $66,000. That number includes the $180,000 the LNC extracted from LP Presidential Campaigns for debate participation.
The LNC has $379,000 in liquid assets, but it also has $338,000 in current liabilities. The difference, free cash on had, is $41,000. The ‘current reserve adequacy’, which is a separate calculation of available money, is $31,000.
Given current loss rates, the LNC is a month or two from running out of reserve cash and having to cut expenses by, roughly speaking, $25,000 per month.
To quote Adam Haman, who at the time was defending the “Joint Fundraising” scheme:
“The LP is broke – it may even be underwater. I have no idea which, because the hotel overcharged us by a lot and that has yet to be resolved.”
To his credit, having noted the financial situation, Haman then advocated for a particular scheme for solving the problem.
Nonetheless, the LNC is in dire financial straits.
Walter Ziobro writes us, asking: “Does McArdle understand the implications of what she is doing?”
$38,000 in ballot access expenses. Once that drops to zero, as long as they still have enough cash to pay off that convention expense balance, they should be OK. It won’t be pretty, though. And it won’t be long after that that the presidential year revenue boost (such as it is) will be over. Then it just comes down to how much revenue was lost due to the crm migration and can it be brought back up vs how much was lost due to Mises Caucus shenanigans and won’t be coming back until they are gone.
It wouldn’t surprise me if they skate along being near broke until the next convention and turn over to a new, non-MC LNC completely empty bank accounts. Mission accomplished.