Nearly all funds paid to Ted Cruz-tied PAC through podcast deal have gone to his reelection bid

Nearly all the money so far generated by U.S. Sen. Ted Cruz’s controversial podcast-syndication deal with San Antonio-based iHeartMedia has gone to directly support his reelection bid, federal records show.

During the current election cycle, Truth and Courage — a super PAC that receives payments from radio group iHeartMedia as part of the company’s distribution agreement for The Verdict With Ted Cruz podcast — spent a total of $712,994 to back the Texas Republican’s reelection, according to campaign finance filings.

The entirety of those funds went to a Los Angeles-based entity called Catamaran Consulting, which used it for signs, canvassing, field operations and printing to back Cruz, records show. Cruz, a two-term senator, is locked in a tight race against Democratic challenger U.S. Rep. Colin Allred.

The $712,994 sum accounts for the vast majority of the $786,000 iHeartMedia has pumped into Truth and Courage since the podcast distribution deal was inked in late 2022, campaign finance records show.

Cruz has faced intense scrutiny over his arrangement with iHeartMedia, which he trumpeted at the time of its signing as a “big damn deal” since the media conglomerate owns some 850 radio stations nationwide.

Critics argue the agreement was structured to skirt federal campaign contribution laws, and watchdog groups have filed at least two active complaints with the Federal Election Commission over the transaction.

Super PACs can accept direct corporate donations under federal campaign finance law, but federal candidates can’t “solicit, receive, direct, transfer, or spend funds” on behalf of those fundraising entities. The FEC complaints argue that, by appearances, Cruz directed iHeartMedia to flow corporate dollars to Truth and Courage in violation of the law. 

Experts also have raised questions about whether the syndication agreement will prompt an investigation by the IRS.

Neither Cruz’s camp nor iHeartMedia was available for immediate comment Thursday.

However, Cruz’s office has issued previous statements denying any wrongdoing in relationship with iHeartMedia, arguing that the senator makes no direct money from The Verdict, which airs three times a week.

Officials with iHeart media have largely been silent on the transaction other than a statement from a company spokeswoman saying money funneled to Truth and Courage is “associated with” ad sales on the podcast.

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This article appears in Best of San Antonio 2024.