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How the NRA Shot Itself in the Foot
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How the NRA Shot Itself in the Foot

The Power and Challenges of the NRA

The Influence of the NRA

  • The National Rifle Association (NRA) is one of the most powerful lobbying groups in America, leveraging both financial resources and a dedicated membership base of approximately five million pro-gun voters.
  • The organization has effectively mobilized single-issue voters across various elections, emphasizing the importance of Second Amendment rights for self-defense and property protection.

Current Struggles Facing the NRA

  • Despite its power, the NRA is currently facing significant scandals and legal challenges that threaten its existence, including accusations against executives for misappropriating funds.
  • Legal battles are ongoing against attorneys general in New York and Washington D.C., alongside disputes with former advertising agencies, leading to substantial legal expenses.

Historical Context of the NRA

  • Originally formed in 1871 by Union soldiers to promote gun safety, the NRA was non-political for over a century before evolving into a pro-gun lobby group.
  • Its first political involvement came with support for the National Firearms Act in 1934, which contrasts sharply with its current stance against gun regulations.

Political Evolution and Strategies

  • Starting in the 1970s, the NRA ramped up political efforts to oppose gun control measures like background checks and waiting periods.
  • The organization now operates multiple entities including a political spending arm and charitable foundation, all largely controlled by Wayne LaPierre.

Key Figures and Events

  • Wayne LaPierre serves as a prominent spokesperson for the NRA despite not being an avid shooter; he has been effective in advocating for gun rights.
  • LaPierre gained notoriety after his controversial response to the Sandy Hook tragedy: "The only thing that stops a bad guy with a gun is a good guy with a gun."

Membership Dynamics During Political Tensions

  • The NRA often sees increased membership during times when gun ownership is perceived to be under threat, particularly during mass shootings or legislative pushes for stricter regulations.
  • Under LaPierre's leadership, they successfully opposed President Obama's attempts at stronger gun laws during his second term.

Financial Support and Political Endorsements

  • The NRA played a crucial role in Donald Trump's election campaign by endorsing him and contributing significant funds—$30 million specifically towards his campaign efforts.

Media Ventures and Failures

  • Following Trump's election victory in 2016, the NRA launched NRATV aimed at promoting their agenda but ultimately faced failure due to low viewership despite high production costs.

What is NRATV and Its Impact on the NRA?

Overview of NRATV's Purpose and Financial Implications

  • NRATV was primarily a platform for promoting gun sales in America, but it turned out to be a poor business decision for the NRA, costing around $40 million with minimal viewership.
  • The launch of an investigation by New York State into an insurance product called Carry Guard marked the beginning of significant troubles for the NRA.

Legal Troubles and Internal Conflicts

  • The NRA faced legal issues due to lacking proper permits under New York insurance law, prompting them to hire lawyer William Brewer for guidance.
  • An internal audit was suggested by Brewer to track substantial expenditures linked to their PR agency, Ackerman McQueen, which had billed $40 million for NRATV services.

Disagreements and Allegations of Misuse

  • Tensions arose between the NRA and Ackerman McQueen over financial practices; allegations surfaced that leadership misused charitable funds for personal expenses.
  • Wayne LaPierre was accused of extravagant spending, including a secretive $17 million contract that raised eyebrows among board members.

Lawsuits and Investigations

  • In April 2019, the NRA filed a lawsuit against Ackerman McQueen over billing disputes just before a revealing report from The New Yorker highlighted corruption within the organization.
  • The New York Attorney General alleged that improper spending enriched NRA leadership, leading to further scrutiny from various authorities.

Leadership Struggles and Political Context

  • Internal conflicts escalated during an annual meeting where Oliver North threatened LaPierre with disclosures about his spending if he did not resign.
  • Despite North's efforts to challenge LaPierre’s position, LaPierre remained in power while purging supporters aligned with North.

Broader Legal Challenges Faced by the NRA

  • Letitia James became involved as New York's Attorney General after being elected on a platform critical of both Donald Trump and the NRA.
  • James' investigation revealed systemic issues within the NRA that contradicted its stated mission, leading her to file lawsuits against both the organization and its foundation.

Ongoing Legal Battles and Financial Strain

  • The NRA has denied all allegations made by New York officials, labeling them as politically motivated attacks while facing mounting legal fees exceeding $1.3 million monthly due to ongoing litigation.

NRA's Financial Troubles and Internal Culture

Overview of Financial Issues

  • The NRA has reportedly collected $54 million over two years, but LaPierre disclosed serious financial troubles, indicating a loss of about $100 million in revenue during 2018 and 2019.
  • The organization faced layoffs due to the Coronavirus outbreak, compounding its financial difficulties as expenses continue to rise.

Allegations of Misconduct

  • Joshua Powell's tell-all book alleges significant misconduct within the NRA, claiming that members' money has been wasted to the tune of hundreds of millions over 30 years.
  • LaPierre appears to deflect blame onto the culture within the NRA, suggesting leadership treated it like a personal piggy bank.

Legal Defense and Spending Shift

  • The NRA is currently in defense mode against allegations, redirecting funds typically used for lobbying towards legal fees instead.
  • LaPierre portrays himself and the organization as victims of partisan attacks while rallying support from members by invoking historical references to defend gun rights.

Future Implications

  • Although there are calls for dissolving the NRA by the attorney general, significant fines and board member removals seem more likely outcomes than dissolution itself.
  • The overarching lesson suggests that hubris may lead to the organization's downfall, highlighting risks associated with being a powerful entity.
Video description

The National Rifle Association had long been known as one of the most powerful lobbying groups in America. But at the peak of its power, this well-funded ally of the Republican Party has found itself besieged by scandal and legal challenges that could permanently change how it operates. #BloombergQuickTake #TheBreakdown #News The Breakdown showcases rise-and-fall stories from the modern business world, told through the lens of Bloomberg reporting. Episodes look at what contributed to not only the success of a business or organization, but also the turning point at which the fall began. Prior stories covered include the NRA, Hertz, WeWork, Boeing, Kodack and many more. See the full series: https://youtube.com/playlist?list=PLqq4LnWs3olWs0miiytL-wndnY0TXNnSf -------- Like this video? Subscribe: http://www.youtube.com/Bloomberg?sub_confirmation=1 Become a Quicktake Member for exclusive perks: http://www.youtube.com/bloomberg/join QuickTake Originals is Bloomberg's official premium video channel. We bring you insights and analysis from business, science, and technology experts who are shaping our future. We’re home to Hello World, Giant Leap, Storylines, and the series powering CityLab, Bloomberg Businessweek, Bloomberg Green, and much more. Subscribe for business news, but not as you've known it: exclusive interviews, fascinating profiles, data-driven analysis, and the latest in tech innovation from around the world. Visit our partner channel QuickTake News for breaking global news and insight in an instant.