Ron Paul Supporters Could Cause Millions of Losses for Fox News

2008 US Presidential candidate Ron Paul supporters raised an unprecedented $10 million plus during two single day fundraising efforts.  Real supporters putting their money behind a candidate they truly believe can become the next President of the United States.  Fox News doesn't see it that way.  That organization has excluded the long time Texas Representative from participating in an upcoming televised New Hampshire debate.  In response, supporters of Ron Paul have called for boycotting the cable news network and its sponsors.  With nearly $20 million raised for the Paul campaign during the 4th quarter, there is speculation that a "boycott" move could seriously affect sponsors.

Fox News May Want to Look to its Own Past

Back in 1997, I was one of many who worked on a case involving Fox News Corp, which at that time was a small upcoming cable news organization going up against powerhouse CNN.  Chicag0-based law firm, Kirkland & Ellis, represented Fox News at the time. 

CNN was owned by Time Warner.  Time Warner dominated cable television in New York City and, while Fox news tickers flashed from its state-of-the-art studio in Midtown Manhattan's most prime real estate along Avenue of the Americas, few if anyone in the city could actually view Fox News.  That's because Time Warner excluded them.

When Time Warner bought out Ted Turner's Turner Broadcasting, a federal antitrust consent decree required Time Warner to carry a second all-news channel in addition to Time Warner's own CNN. Time Warner selected MSNBC as the secondary news network, instead of Fox News. Fox News claimed that this violated an agreement to carry Fox News, and Ailes used his connections to persuade Mayor Giuliani to carry Fox News and Bloomberg Television on two underutilized city-owned cable channels, which he did.

New York City also threatened to revoke Time Warner's cable franchise for not carrying FOX News.

A lawsuit was filed by Time Warner against the City of New York claiming undue interference and for inappropriate use of the city's educational channels for commercial programming. News Corporation countered with an antitrust lawsuit against Time Warner for unfairly protecting CNN. This led to an acrimonious battle between Murdoch and Turner, with Turner publicly comparing Murdoch to Adolf Hitler while Murdoch's New York Post ran an editorial questioning Turner's sanity. Giuliani's motives were also questioned, as his then-wife was a producer at Murdoch-owned WNYW-TV. In the end, Time Warner and News Corporation signed a settlement agreement to permit Fox News to be carried on New York City cable system beginning in October 1997, and to all of Time Warner's cable systems by 2001, though Time Warner still does not carry Fox News in all areas.

The end result was that a lot of people residing in New York City felt jilted by Time Warner's decision not to run Fox News.  Once they were required to do so, many tuned in en masse and found themselves liking the product that Fox News had to offer. 

Ron Paul supporters, likewise, have suggested that exclusion from this upcoming event could backfire.

"They (Fox News) are scared of me!" Ron Paul himself is quoted as saying. 

Unfair Playing Ground

The Fox affiliate in New Hampshire has said it had limited space in its studio — a souped-up bus — and that it invited candidates who had received double-digit support in recent polls.  Yet analyses of recent poll results suggest that Fred Thompson (who was invited to take part) is in a dead heat with Ron Paul.   Prediction markets have Ron Paul way ahead of Thompson

Likewise, Ron Paul continues to be the most searched for candidate on the Web.  Paul himself has suggested that his supporters are less likely to be reflected in national and local polls since many have never voted before and a large percentage do not have access to land-line phones.  Also, it is widely speculated that many of the so-called "undecided" votes will go towards Paul.   The Republican's treasure chest is being utilized wisely via last minute ad campaigns that paint the Texas Congressman as a pro-life, pro-gun Patriot who served his country well during Vietnam. 

Jesse Benton, Paul's spokesman, said it was a "big mistake" not to include his candidate, especially given Paul's recent success in fundraising. He said the campaign has been trying to reach Fox News to explain the decision, but its calls had not been returned.

"There very well might be some bias," Benton said. "Ron brings up some topics that aren't very popular with Fox News, as in fiscal responsibility and withdrawing from the war in Iraq ... that does leave us scratching our heads a little bit about whether it was deliberate. Based on metrics, I don't see how you can possibly exclude Dr. Paul."

New Hampshire Republican Party Chairman Fergus Cullen releases the following statement regarding primary weekend debates:

“Limiting the number of candidates who are invited to participate in debates is not consistent with the tradition of the first in the nation primary. The level playing field requires that all candidates be given an equal opportunity to participate – not just a select few determined by the media prior to any votes being cast.”

“Therefore, the New Hampshire Republican Party calls upon all media organizations planning pre-primary debates or forums for both parties to include all recognized major candidates in their events.”

“The New Hampshire Republican Party has notified FOX News of our position, and we are in ongoing discussions with FOX News about having as many candidates as possible participate in the forum scheduled for January 6.”

Short It!

Gambling911.com reporter, Jennifer Reynolds, who was brought on specifically to cover the lucrative Ron Paul campaign, had this to say in response to the Fox News exclusion:

Ron Paul supporters will be holding rallies, writing letters to the editor, boycotting all sponsors, calling Fox news and in an additional move there is even talk of contacting all shareholders of the company that owns Fox news (I will let you look that up yourself) and is advising everyone to sell sell sell and for those of you not able to sell, buy short. I am not offering any advice, I am only reporting what I have seen in print.

It should be noted that Gambling911.com certainly doesn't advocate shorting News Corp stocks.  Reynolds is simply passing along information she gathered across the Net.

A look at the News Corp Yahoo! finance forums display what Reynolds is alluding to.  That board was inundated with Ron Paul supporters blasting the company even though trading would not commence for a full 36 hours from press time.

"Fox is playing the AMERICAN PUBLIC for FOOLS. How dare they!" cries out one poster.

"Murdoch and Fox are desperate and could care less about the first amendment and the truth. Complete cowards," voiced another disgruntled Ron Paul supporter.

On Monday, News Corp's shares had fallen .19%.

----

Christopher Costigan, Gambling911.com Publisher CCostigan@CostiganMedia.com

Originally published December 31, 2007 8:25 am EST