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Investigative reporter who broke the story about Governor Schwarzenegger and his tabloid deal says he'll need to cut his ties with American Media, Inc., and may face a conflict-of-interest investigation

California Politics Today #385

Santa Barbara, California
July 15, 2005

By Marc Strassman
Reporter
California Politics Today
Etopia Media News Networks
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Ann Louise Bardach, investigative reporter-------------Arnold Schwarzenegger, Governor of California


Ann Louise Bardach's August, 2004, expose of Schwarzenegger-AMI connection

As reported on this site yesterday, Ann Louise Bardach, an investigative reporter who is now Director of The Media Project at the Center for Film, TV, & New Media at the University of California, Santa Barbara, had already revealed last August, in an article published at that time in Los Angeles Magazine, the agreement between Arnold Schwarzenegger and American Media, Inc. (AMI) which has only now been receiving massive media attention.

The current wave of coverage was set off by a filing with the Securities and Exchange Commission (SEC) indicating that California Governor Arnold Schwarzenegger, identified in that document only as "Mr. S.," would be receiving $8 million over a five-year period under the terms of his arrangement with AMI.

This agreement provided the tabloid empire with the services and cachet of a mega- movie star and former bodybuilder and, and that star (Mr. Schwarzenegger) with what turns out to be $8 million over five years in income.

More importantly, for both parties, it meant that the Star, the Globe, and the National Enquirer would no longer be in a position to undermine Mr. Schwarzenegger's run for the California Governorship, which they had previously done before the agreement, in 2002, thereby paving the way for his election to the governorship, where he was able to provide payback to his media patrons by vetoing, on September 29, 2004, a bill (SB 1630) by California State Senator Jackie Speier that would have regulated "nutritional supplements," advertising for which provides most of the income to two bodybuilding magazines in the AMI stable.

Ms. Bardach updates the story

California Politics Today and Podmedia Reports spoke this afternoon with Ms. Bardach about this case.

You can listen to that conversation by clicking here.

In that interview, Ms. Bardach indicated her view that, due to the uproar over the perceived conflict-of-interest involved in a media company paying an elected official out of funds received from advertisers for products that he has preserved the market for through his official actions, Governor Schwarzenegger would need to "step down" from his position with AMI.. She also said he may have to face a conflict-of-interest investigation.

Meanwhile, back in the California Legislature

Jackie Speier, California State Senator, District 8 (San Francisco-San Mateo)


Senator Speier has re-introduced, with modifications designed to meet the stated objections of Governor Schwarzenegger that he says led him to veto SB 1630 last year, SB 37, which, like its vetoed predecessor, seeks to end the "juicing" of California's high school athletes.

SB 37 passed the California Senate on May 31, 2005, cleared the Assembly Education Committee on June 30th and the Health Committee on July 5th. It will next be considered by the Assembly Appropriations Committee when the California Legislature returns in mid-August.

You can access the latest version of SB 37, as amended four days ago on July 11th, by clicking here.
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