Knox prepared to spend millions on gubernatorial bid

PHILADELPHIA—Tom Knox spent more than $10 million from his own pocket on an unsuccessful run for mayor here in 2007. A couple years later, the wealthy Philadelphia businessman seems willing to spend a whole lot more to win the Governor’s Mansion.

In a recent interview with pa2010.com, Knox, a Democrat, said a successful gubernatorial run for a candidate of his profile would cost about $30 million; $15 million each for the primary and general elections. While he has high fundraising hopes, Knox said he would spend “whatever it takes” to win.

“I want to make sure that this time I’m a winner,” said Knox, who finished second in Philadelphia’s 2007 Democratic mayoral primary to eventual Mayor Michael Nutter.

Knox, who is the first candidate to say he’s definitely running for governor, is clearly hesitant to discuss money and wary of the perception that he is trying to buy the governorship—criticism that was not unusual during his mayoral bid.

“i don’t like talking about money or bragging about my money,” he said in his downtown office here. “I think money is to be used wisely and for the better good of people. I feel uncomfortable talking about wealth.”

Nonetheless, Knox’s personal fortune—and to what extent he deploys it—is sure to be a critical factor in his candidacy. He is little known to the statewide electorate, and has never held elected office. And in a difficult fundraising climate, with more national money expected to go to the competitive Senate race, Knox’s could find himself spending heavily. He built his mayoral campaign almost entirely with his own money, spending about $11 million and raising about $1 million. With a large advertising budget, he was leading in the polls for some time, before eventually losing to Nutter by 12 points.

“I hope that we’re able to do a better job fundraising this time,” Knox said. He started taking contributions late last year, and raised about $92,000 before the end of December, according to his campaign finance report [see here]. He entered 2009 with $76,000 on hand.

Few analysts expect Knox to garner much support from party insiders, and most think spending big will be his only possible route to victory.

“Spending a lot of money isn’t a bad way to make yourself a competitor,” said Chris Borick, a pollster and political science professor at Muhlenberg College. “The next step, getting people to like you and trust you, takes more than that.”

Knox made millions as a health care executive and in taking over and restructuring companies. His campaign would not disclose his net worth, but will have to file a financial disclosure next year.

Larry Ceisler, a longtime Democratic political consultant in Philadelphia, said that big spending wouldn’t be enough for Knox to win.

“I just don’t see it really having much impact,” he said. “I see the same thing happening to him in a gubernatorial primary that happened to him in the mayoral primary. He’ll get off to a fast start but then newspapers and bloggers are going to go after him on his past businesses, and I think that he’s going to get beat up, the same way he did when he was running for mayor.”

Dipping into his own wallet may have seemed less appealing a few months ago, when former state Secretary of Revenue Tom Wolf was still considering a gubernatorial run of his own. Wolf has a vast personal fortune of his own, and had filed paperwork in January to form a committee and start raising money for a campaign. But only weeks later, he bowed out of the race to return to the company his family founded in the 1800s. Two wealthy candidates spending heavily could have pushed up the cost for both.

“It doesn’t change how much money Tom is going to have to spend and raise,” Knox campaign manager Josh Morrow said. “It’s a big state.”