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MEMORANDUM
November 23, 2008


TO:		Cheryl Mills

FROM:	Capricia Marshall
		
SUBJECT:	Debt Retirement Opportunities


This memorandum outlines options for retiring the projected 8.0 M debt of the Hillary Clinton for President Campaign (HCFP), which is based upon an existing $7.6M existing debt and projected wind-down costs of .4M.

The most efficient strategy for retiring the debt is to approach it in two phases – Phase I:  December 1 – January 1, 2009; and Phase II:  January 2 – January 19, 2009.

Phase I
The following potential actions could yield approximately $4M in debt retirement, but would require immediate action to accomplish.

Rental of HCFP Email List

The benchmarked rental rate of the HCFP email list is $280,000.  Any of the following entities could rent the list one time:

•	DNC (for debt retirement)
•	Obama Inaugural Committee (for Inaugural funds)
•	DSCC (for fundraising)
•	DCCC (for fundraising) 

For a total revenue of $1.12M.

Solicitation to Obama for America Email List
The Obama for America email list has not received any solicitations for debt retirement for Senator Clinton, which may be particularly timely given the efforts Senator Clinton made on President-Elect Obama’s behalf during the campaign – including raising more than $10M and doing more than 70 events to support his election.

We project, without the benefit of any consultation with the Obama for America team, that a targeted debt request from Senator Obama in fulfillment of his commitment to assist her with his debt may raise a projected $.5M.



Obama for America Major Donors Commitment Fulfillment
The Obama for America has outstanding commitments for HCFP funds.  A request by the Obama campaign to their major donors’ list to fulfill the 400K committed during the campaign would raise $0.4M in debt relief funds.

Debt Reduction Events
There is any number of events that could be done, but given how quickly the holidays are approaching, event planning would need to get underway now.  Options for debt retirement events include:

DNC/HRCFP Debt retirement event
A joint DNC/HCFP debt retirement event headlined by Senator Obama that raised debt money for the DNC and for HCFP, with the first $2300 of eligible contribution money going to HCFP and the remaining contribution amount up to the contribution limit going to the DNC.  The total projected revenue from this event is $1.5, with approximately $.750M for HCFP debt relief.

(Alternatively this event can be done with President Elect Obama for HCFP alone and raise the same net funds)

A Major Women’s Event
Women’s events throughout the campaign were very successful for the HCFP.  For this to be a successful event, it would need the support of the Obama fundraising team and their lists to invite individuals who have not donated to HCFP yet.  We would tier the event so as to maximize the possible donations.  The event could be hosted by Michelle Obama as the keynote, in honor of Hillary Clinton.  With the appropriate celebrity attendance, tiering and reception strategy, we project that the event would raise $1.5 - $2M, and net of expenses would contribute $1.2M toward HCFP debt relief.  

Phase II
Assuming we wind-down the HCFP entity by December 31 or thereabouts, there are two major assets that must be sold to continue their use once the HCFP entity is dissolved.  Given that Senator Clinton anticipates an on-going future in politics, the entity best-placed to own these two assets, her supporter lists, is the Friends of Hillary Committee.

Based upon benchmark market data, HCFP will sell the HCFP mail list to the FOH for $1.8M; it would sell the HCFP email list to FOH for $3.0M.  These final sales will net $4.8M in debt relief for HCFP and close out its debts assuming that at least $3.2M has been raised from other activities in Phase I.








Recommendation:
The following activities would retire the debt, but are open to any of the activities outlined in this memorandum:


Activity					Date		Projected HCFP Revenue
HCFP Email Rental by DNC			Dec 1		$0.280M
HCFP Email Rental by DCCC		Dec 15		$0.280M	
HCFP Email Rental by DSCC		Dec 15		$0.280M
HCFP	Email Rental by BO Inaugural	Dec 15		$0.280M
OFA Major Donor Fulfillment		Dec 1		$0.4M
OFA Email Solicitation			Nov 24		$0.5M
Major Women’s Event			Dec		$1.2M (net revenue)
Major Donor BO Event			January	$.780M (net revenue)
Sub-Total Estimated						$4M (estimate only)

Sale of Email List				Jan 2		$3.0M
Sale of Direct Mail List			Jan 2		$1.8M
Sub-Total Actual						$4.8M

Projected Total						$8.8M
Projection Slippage Cushion					[$0.8M]
Target Total							$8M