Kerry Adviser Walks Over Money Talks
By Paul Farhi
Saturday, April 3, 2004; Page A06
John F. Kerry's top media adviser called it quits yesterday, after a dispute with the campaign over how his firm would be compensated.
Jim Margolis, who had worked for the Massachusetts senator's campaign for almost two years, said he and his Washington-based firm, GMMB, will no longer create ads for the presumptive Democratic nominee. Margolis, in a statement, cited "proposed contract changes" that were unacceptable to his firm.
Margolis's departure appears to be an outgrowth of long-simmering tensions with another top Kerry adviser, Bob Shrum, over compensation. Shrum and Margolis have clashed over ad strategy, but more important, the two have locked horns over how their respective political consulting firms would divide the tens of millions of dollars Kerry is expected to spend through the November election.
Kerry listed media expenditures of $10.5 million as of the end of February. GMMB handled the vast majority of that money through a wholly owned subsidiary, Riverfront Media.
Margolis survived a shake-up of Kerry's campaign staff in November during which campaign manager Jim Jordan was replaced by Mary Beth Cahill, who is close to Shrum through their work for Sen. Edward M. Kennedy (D-Mass.).
"Unquestionably, being a part of Senator Kerry's presidential campaign has been one of the most important efforts our firm has ever undertaken," Margolis said in his statement. "The stakes couldn't be higher for our country and we have been honored to help produce the spots and assist in developing the strategy that helped him secure the Democratic nomination."
Margolis's firm will continue to buy media time for the campaign, but Margolis will no longer be involved in creating or producing Kerry's ads.
In a separate move, Kerry turned to a familiar Massachusetts political veteran, naming John Sasso as his chief liaison at the Democratic National Committee. Sasso, whose title at the DNC will be general election manager, was a top aide to Michael S. Dukakis when he was Massachusetts governor and when he ran for president.
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