Wednesday, December 5, 2012

Armey Received an $8 Million Payout to Leave FreedomWorks

Woha baby, what kind of secrets does Dick Armey know about FreedomWorks?

The ousted Armey received an $8 million buyout to step down as chairman of FreedomWorks at the end of last month, reports Politico. Armey is to get 20 annual installments of $400,000.

According to Politico:
The tensions at FreedomWorks, brewing for months, boiled over this summer when Armey balked at a deal that Kibbe struck with HarperCollins to write a book called “Hostile Takeover: Resisting Centralized Government’s Stranglehold on America,” which was released in June.
Armey was concerned that Kibbe structured the deal to personally profit from the book despite relying on FreedomWorks staff and resources to research, help write and promote it — an arrangement he and others at the group believed could jeopardize its tax-exempt status...
So Armey declined to sign a memorandum presented to him in his capacity as a member of the board of trustees stating that the book was written without significant FreedomWorks resources and clearing the way for Kibbe to personally own the rights to the book and any royalties from it, multiple sources familiar with the arrangement told POLITICO.
Asked about his refusal to sign the memorandum, Armey, a former House Republican leader, said, “What bothered me most about that was that he was asking me to lie, and it was a lie that I thought brought the organization in harm’s way.”
In the book's acknowledgements, Kibbe thanked “a number of colleagues at FreedomWorks whose hard work also made this book a reality. Adam Brandon, Agitator-in-Chief, got this project off the ground as he always does, by committing to the impossible. Dean Clancy, Wayne Brough, Julie Borowski, Laura Howd, Josh Withrow, and Ryan Hecker all contributed substantial research and thinking on the ‘policy’ chapters, often putting in late hours to make good, better. Patrick Hedger, Michael Duncan and Max Pappas provided detailed copy edits to the final draft.”


  1. No organization by the name of FreedomWorks has ever been funded by the Kochs. You are confusing FreedomWorks with Americans for Prosperity. Citizens for a Sound Economy split into FreedomWorks and AFP in 2004 because of disagreements with the Kochs. AFP is Koch funded; FreedomWorks is not.

    On Lew Rockwell's blog: "FreedomWorks was founded after Armey left Citizens for a Sound Economy because Armey would not take orders from Charles Koch."

    The $8 million is coming from a private individual who sits on FreedomWorks board. As it says in the Daily Caller:

    "Referencing news reports suggesting otherwise, Armey emphasized that the money isn’t coming from the FreedomWorks coffers.

    “I can tell you that any agreement I had with Dick Stephenson in no way was an agreement between me and FreedomWorks,” he said.

    1. Thanks I have removed the reference to a Koch connection.

      Daily Caller simply references an AP story as to the Armey payout. The wording in the story is poor and it is unclear as to whether FreedomWorks board member, Stephenson, is paying Armey $8 million out money of his own pocket or was simply negotiating on behalf of FreedomWorks.

      If it is Stephenson's own money, the question becomes why would a board member sign a contract with Armey to get him to leave FreedomWorks and pay him $8 million to do it?