DeSantis’ megadonors watch and wait as campaign struggles

TALLAHASSEE, Fla. — GOP megadonors who invested in Florida Gov. Ron DeSantis as an alternative to Donald Trump for president are having serious second thoughts about continuing to back a candidate who political analysts say is looking like a bad bet.

Among them are: A Las Vegas aerospace business and hotel owner who has spent part of his fortune looking for proof of extraterrestrials. An NFL team owner and mall developer whose bribery conviction was pardoned by Trump. An investment broker whose firm suffered fallout from the Silicon Valley Bank failure.

Those donors and others, including hedge fund managers, real estate developers and insurance executives, helped fuel the Never Back Down PAC that is providing the bulk of resources for the DeSantis campaign.

Six months ago, DeSantis’ fortunes looked bright. But since he announced his candidacy he has sunk in the polls, as Trump’s numbers rise despite three federal indictments against him.

After three reboots, massive layoffs caused by unchecked spending, and a shakeup of the organization’s leadership, the wealthy donors are waiting to see if DeSantis can turn his troubled campaign around.

“That the donor grumbling became public suggests the possibility that these donors were looking for a change in direction,” said Kyle Kondik, managing editor of the nationally respected Sabato’s Crystal Ball at the University of Virginia Center for Politics.

Campaign staff reshuffles might indicate such a change in direction, he said, but they are rarely interpreted as positive developments, “and it’s hard to spin this one as such,” Kondik said.

The candidate himself is the main problem, he added. “The DeSantis campaign needs a shot in the arm, and maybe this and other changes paired with what I’m sure they hope will be a good debate could be that.”

Money came in early

Most of the big donor dollars came before he officially announced his candidacy on May 24, just more than $30 million, according to federal campaign records. His largest post-announcement donation was $82.5 million on May 31 from Empower Parents, a Florida political committee originally set up as the Friends of Ron DeSantis PAC for his reelection as governor.

DeSantis already is running a distant second, with the margin between him and Trump widening. Trump’s lead as of Thursday has grown from 43.4% to 53.7% since January 1, while DeSantis numbers have dropped from 38% to 14.3 %, according to 538, a prominent election analysis website.

“This has clearly been a disappointing campaign so far,” Kondik said, with DeSantis and other candidates bystanders watching the major story of the campaign – whether Trump’s big lead eventually erodes because of his legal trouble and baggage.

The largest donation to Never Back Down from an individual was just more than $20 million from Robert Bigelow, a billionaire Las Vegas hotelier and UFO enthusiast who two years ago offered $1 million for proof of life after death.

In an exclusive interview with Reuters, Bigelow, angry over the governor’s signing a six-week abortion ban into law, warned he might stop giving to DeSantis unless he moderates campaign rhetoric about culture wars and attracts more donors.

“Extremism isn’t going to get you elected,” Bigelow told Reuters. He said DeSantis would need to raise a lot more from other donors before Bigelow gave more, but he didn’t say how much.

“Not until I see that he’s able to generate more on his own. I’m already too big a percentage,” Bigelow said. “A lot of his donors are still on the fence.”

Nonetheless, Bigelow – who also runs an aerospace company – said DeSantis is the best candidate for president and hopes he wins the primary. Bigelow did not return calls for comment on this story.

Bigelow also was one of the two biggest donors to the DeSantis reelection campaign for governor at $10 million. Hedge fund owner and billionaire Ken Griffin gave $10 million to the governor’s reelection fund, but so far hasn’t given any money to his presidential campaign.

Griffin, who criticized DeSantis over his so-called “Don’t Say Gay” law that bans instruction about sexual orientation or gender identity in public schools, said last month he hit the pause button on supporting the governor.

The second largest donation was from Miami attorney Scott Wagner, whose committee Faithful and Strong Policies gave DeSantis $5.5 million. Wagner, who’s known DeSantis since their days at Yale, was just reappointed to a second term on the South Florida Water Management District by the governor.

He also did not return calls and emails seeking comment.

Billionaire venture capitalist Douglas Leone of Sequoia Partners gave the super PAC $2 million. Sequoia partnered with Silicon Valley Bank to manage about $1.5 billion of Florida’s retirement fund assets.

Leone stepped down as managing partner after last year’s financial crisis at the bank but remains as general partner. He was a huge Trump supporter in the 2020 race but withdrew his support after the storming of the Capitol on Jan 6.

Another $1 million came from companies owned by Daytona Beach developer Mori Hosseini, a huge supporter of DeSantis, who appointed Hosseini chairman of the University of Florida Board of Trustees.

Hosseini gave a golf simulator to the Governor’s Mansion and has lent his private jet to DeSantis on numerous occasions. The Legislature this session financed a new interchange on Interstate 95 in Volusia County that will make it easier to access property Hosseini owns there.

Eddie DeBartolo Jr., billionaire owner of San Francisco 49ers and a real estate developer from Youngstown, Ohio, gave Never Back Down $250,000. He runs his own real estate development company and investment firm in Tampa and is co-owner of Simon properties, developer of several malls across Florida.

In 1998, DeBartolo pleaded guilty to not reporting a bribe from a Louisiana government official. President Trump pardoned DeBartolo in 2020.

Why rich give so much

Wealthy people invest large sums in presidential candidates, for several reasons, said Matt Dallek, a historian and professor of political management at George Washington University.

“They’re not just interested in a longshot presidential bid but because the person they’re donating to is the governor of Florida, and they have business interests in that state,” Dallek said.

He also said many don’t like Trump and want a business-friendly candidate who will cut regulations, as DeSantis has done in Florida.

And there are those who buy into the governor’s culture wars rhetoric, he said, people like the DeVos family, owners of the Orlando Magic who gave $50,000 to Never Back Down.

Until DeSantis started his nose dive in the polls, they all saw him as a more credible candidate than Trump or anyone else in the field.

“They saw DeSantis as more electable and like what he’s done,” Dallek said.

Dallek compared DeSantis to Florida Gov. Jeb Bush, who raised a lot of money from wealthy donors when he ran for president in 2016 and didn’t have a strong grass-roots organization. Bush burned through his money quickly, and without gaining any traction, as DeSantis has done.

“A lot of money came in early, and he seemed very formidable,” Dallek said. “And then, not so much.”

It’s hard to imagine now that six months ago people thought DeSantis seemed like the ideal horse to bet on against Trump, he said. “DeSantis seems very weak right now,” Dallek said.

Trump’s three indictments have solidified his support with his most ardent believers. And instead of attacking Trump, DeSantis has defended him against the criminal charges.

The problem with DeSantis is that he misinterpreted the nature of his19-point reelection victory over Democrat Charlie Crist, Dallek said.

“He won because the Democrats had a weak candidate and the people loved his COVID policies,” Dallek said. “Being the leader of ‘woke’ is not what really galvanized folks.”