A super PAC affiliated with Senator Ted Cruz received $215,000 in “digital revenue” from iHeartMedia, despite previous denials of any ethical issues surrounding the company producing his podcast. The Truth and Courage PAC reported the funds in a filing with the Federal Election Commission, dedicated to supporting Cruz’s reelection to the U.S. Senate. The revenue came from iHeartMedia Management Services in February, associated with advertising sales for Cruz’s podcast.
Rachel Nelson, vice president of public relations at iHeartMedia’s Premiere Networks, clarified that Cruz volunteers his time for the podcast and is not paid. However, the company sells advertising inventory, and the reported revenue by the super PAC is linked to those advertising sales. This relationship between Cruz and iHeartMedia has raised ethical concerns, with a watchdog group filing a complaint in 2022 to investigate if the deal violated federal laws prohibiting senators from receiving gifts from registered lobbyists.
Cruz’s podcast, “Verdict,” was launched in 2020 and picked up by iHeartMedia in October 2022, leading to increased production and syndication on the company’s radio stations. The Campaign Legal Center alleged that by entering into this partnership, Cruz accepted a gift from a registered lobbyist, which is prohibited by Senate ethics rules. The CLC pointed out iHeartMedia’s significant lobbying expenditures in 2022, including on bills that went before Cruz’s committee, the Committee on Commerce, Science, and Transportation.
Despite the complaint, a spokesperson for Cruz maintained that there was no ethics violation, stating that the senator receives no financial benefit from the podcast arrangement. The spokesperson equated Cruz appearing on iHeartMedia for his podcast to him appearing on network television, emphasizing that there was no difference in the two scenarios. The Senate ethics committee reportedly informed the CLC last February that Cruz did not violate federal law and does not plan any further action based on the new PAC filing.
The popularity of Cruz’s podcast has continued to grow, with rankings on Spotify’s and Apple’s news podcast charts. As of the latest update, the podcast was ranked at No. 43 on Spotify and No. 31 on Apple’s charts. The ongoing controversy surrounding Cruz’s partnership with iHeartMedia and the implications of the recent PAC funding highlight the intersection of politics, media, and ethics in the digital age. The questions raised by watchdog groups and the response from Cruz’s team may shape the public perception of political figures’ media engagements in the future.
