Archive for June, 2014

NCAA Pays Lobbyists in Hopes of Never Paying Athletes

Friday, June 20th, 2014 by Geoffrey Lyons

BOTH THE NATIONAL Collegiate Athletic Association (NCAA) and the Big 12 have hired lobbyists for the first time.  The issue: the “welfare of student-athletes,” what The Hill describes as “a key turn of phrase being used to underscore that players are students…and not professional athletes who should receive compensation.”

The debate on whether student-athletes deserve pay has been heated for years, and came to a boil most recently when the Chicago division of the National Labor Relations Board decided that Northwestern football players qualify as “employees” and therefore can unionize.  But until now, the NCAA has relied on in-house lobbyists to bring the issue to the Hill, which cost them $180,000 in 2013 alone.

It’s unclear how difficult the NCAA’s task will be.  One lobbyist speculated that when Major League Baseball was last on the Hill, it caved on its steroid policy.  Whether there’s even a chance that the NCAA will do the same depends on how earnestly the issue is taken up by Congress.  At the moment, The Senate Committee on Commerce, Science and Transportation, has yet to reschedule a hearing.

K St. Drools Over Cantor

Thursday, June 12th, 2014 by Geoffrey Lyons

AFTER HOUSE MAJORITY leader Eric Cantor’s (R-Va.) unpredictable defeat Tuesday night, a predictable response: what’s next for the Virginian?

Perhaps the most eager to know are those willing to coax the lame duck into working for them.  His leadership position, writes the Hill, makes him an incredibly lucrative prize.  And depending on the results of this year’s midterm elections, his stock could rise in just a matter of months. The timing of his defeat combined with his length of service and rank within the Republican party are the chief ingredients that make Cantor even more magnetic than “Blue Dog” Democrats, a “popular breed” on K St. for their bipartisanship and amity towards business.

Whether Cantor’s staff will get a share of this fortune is less certain.  Some are arguing that their value will sink as a result of the defeat, while others are skeptical of this assessment.  Ivan Adler, a principal at The McCormick Group, told The Hill “being in leadership means you know the entire caucus; that’s something that’s really important. Those relationships don’t go away because your boss is not there.”  POLITICO’s stance appears to incorporate both views, noting that former Cantor staffers on K St.

are [all] lobbyists with extensive relationships all over town who will ultimately be fine without their Cantor connection on Capitol Hill. But Cantor’s exit – assuming he doesn’t mount a quixotic write-in campaign – shifts the center of gravity and talent on K Street significantly.

As for Cantor’s donors, a potential measure of his influence, POLITICO adds that it’s “futile” to list them “because it’s essentially a who’s who of Fortune 500 and major trade associations.”

Of course, these discussions tend to invite needless speculation, so it’s worth ending on two points of consensus: Eric Cantor has his pick of the crop, and whoever gets him will profit immensely.

On K St.’s Heterogeneity

Thursday, June 5th, 2014 by Geoffrey Lyons

TWO BLACK VULTURES recently made K St. their home, prompting the sort of jokes that one would expect when the caricature of an entire industry nests on its doorstep.  When lobbyist Charlie Dewitt was informed of the vultures’ arrival, he provided the most telling response: “of the bird variety?”

Yet generalizations of any sort would seem unfitting after reading the Washington Post’s brief sketch of K St.’s “new landscape.”  The article provides short portraits of four firms – Franklin Square Group, Chamber Hill Strategies, Policy Resolution Group, and lobbying powerhouse Holland & Knight – each of which is distinguished by some unique characteristic.  Holland & Knight, for example, was the first lobbying group within a law firm to cease using billable hours.  According to Rich Gold, the firm’s head of public policy, this decision meant “not having to worry about how many people to put on a client matter for fear that their collective hourly billing might surpass the monthly retainer the client is paying.”  Policy Resolution Group is equally notable for being a wholly-owned subsidiary of the law firm Bracewell & Guiliani.  According to senior leaders in the firm, “having a separate subsidiary allows non-lawyer lobbyists and professionals to rise to a position that is equivalent to partner, and that helps recruit the best people.”

And it’s not just structural and operational nuances that separate these firms from the pack.  Franklin Square Group, which specializes in technology, prides itself on being the “bridge” between the vastly different cultures of Silicon Valley and Washington.  Of course, they too have a structural distinction in that every partner owns some form of stock option in the firm, but they prefer to see themselves as straddling the line between the fast-moving and risk-driven milieu of the Bay Area and the stodginess of the Beltway.  Taken together, all of these differences account for nothing when the K St. stereotype is very much alive.  The vultures’ choice for nesting grounds helped drive this point home.