Essay Forty-Five

RJ Dale and the Illinois State Lottery account are in the news again. Now a columnist for a Chicago newspaper offers a unique perspective. This essay features the published column and the response from MultiCultClassics.

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Lottery mess a long way from being cleared up

By Lewis Lazare, Sun-Times Columnist

Amid all the controversy swirling around the Illinois Lottery and its general-market ad agency of record, R.J. Dale Advertising and Public Relations/Chicago, the one party we expected to hear from — Lottery director Carolyn Adams, the person who awarded R.J. Dale the now hugely controversial general-market ad account — has been notably silent.

Repeated calls to Adams’ publicist last week were not returned.

In recent weeks, questions about how R.J. Dale has handled the $20 million account it won in a “review” nearly a year ago, have intensified. As has the state's inquiry into the mess.

By its own admission, the R.J. Dale agency has gone through audit after audit by a variety of state inspectors, only to have the mess now land at the doorstep of Illinois Attorney General Lisa Madigan, who, we can assume, will take another look at whether R.J. Dale has properly accounted for and documented its lottery-connected expenditures.

The Illinois Auditor General Bill Holland said he could find documentation for only $2 million of work, though R.J. Dale was paid $7.1 million in fees.

Agency founder R.J. Dale, in an interview Friday, dismissed the state investigations, while suggesting certain unnamed state executives might be taking aim at his shop because it is the first African-American agency ever to handle the lottery’s general-market advertising account.

“We have done nothing illegal, improper or unethical,” Dale insisted. “We don’t owe the state any money. In fact, they owe us money” for services rendered but not paid for.

In getting a handle on the mess, it’s helpful to remember how it began more than a year ago. MediaMix was first to report in the spring of 2004 that DDB/Chicago resigned the lottery ad account because management was concerned that Adams was trying to target African Americans in an effort to persuade that audience to purchase more lottery tickets.

At the time, Adams staunchly denied the charge. But she promptly gave the ad account, on an interim basis, to R.J. Dale, a small Chicago-based advertising and public relations firm that few in the local ad community had even heard of before this.

Until it landed the lottery account, R.J. Dale was primarily involved in doing lottery public relations work aimed at the African-American community.

Though a number of general-market agencies participated in a subsequent review to determine what shop would get the lottery ad account on a permanent basis, few were surprised when Adams and her review panel formally awarded the business to R.J. Dale nearly a year ago.

Soon thereafter, the questions about R.J. Dale began to surface.

Putting aside all the audits and investigations and Gov. Blagojevich’s ridiculous attempts to spin the matter to his political advantage, what this mess really comes down to is a question of competency on several fronts.

First and foremost, the question has to be asked: Is Adams competent to run the lottery? She has not shown any inclination to take responsibility for what has happened or even come forward and explain why she handed the business to R.J. Dale in the first place or what she knows about the lamentable situation as it now stands.

And what about R.J. Dale himself, the man who founded the agency that now handles the lottery advertising? He has been quick to complain in the past about what he characterizes as the media’s attempt to defame him and his agency. But with the state attorney general now investigating, it’s clear the questions have not gone away.

If Dale and his company are in over their heads or if they are even remotely concerned about the fallout from the state inquiries damaging the agency’s image more than they already have, the prudent thing to do is resign the business now.

“You’ve got to be kidding,” was Dale’s response Friday when asked if he would consider resigning the lottery account.

Finally, there is the top man himself, Blagojevich. If Adams and R.J. Dale aren’t going to take action to clean up the mess before more mess happens, he should start acting like a proactive governor and do what obviously needs to be done now — not later.

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Hey, LL Cool Journalist:

Be careful how you report on the Lottery scenario. Some of your comments border on being factually and politically incorrect.

Why did you choose to place quotation marks around the word “review” in your third paragraph? Are you implying that awarding the account to RJ Dale was somehow improper? Perhaps you’ve spent too much time away from the advertising business. Accounts have been awarded for a variety of reasons, from personal relationships to political motivations to blatant bribery. There have been recent instances where accounts were awarded with no review. Heck, sometimes accounts are actually awarded based on the work presented in the pitches. Plus, anyone who has ever dealt with accounts like the Lottery will confirm that politics — personal and governmental — play a huge role in key decisions.

To call RJ Dale a “firm that few in the local ad community had even heard of before this” diminishes the company and your credibility. Plus, it speaks volumes about how minority agencies are viewed in the industry. RJ Dale has been around for over 25 years. Given that there are only a handful of African American-owned shops in Chicago (and only a few dozen nationwide), it’s pretty sad that you were not aware of their existence. However, it’s not surprising.

Why was DDB allegedly concerned that the Lottery might be targeting African Americans? If research and sales show African Americans to be high-volume customers, shouldn’t the Lottery go after them? There are few successful brands that ignore their most profitable customers. Perhaps DDB was concerned because they have no experience in targeting African Americans. Then again, DDB has no problem targeting African Americans for clients like McDonald’s and State Farm Insurance — and the agency even has a partnership with Spike Lee’s shop. Perhaps you should further investigate DDB’s alleged concerns.

RJ Dale was not just “primarily involved in doing Lottery public relations” prior to landing the entire account. They were producing TV spots, print ads and more for the Lottery. Their accomplishments on these efforts helped them win the total business.

Why did you report that “few were surprised” when RJ Dale formally won the account? Did the other agencies realize RJ Dale had superior credentials? Or were additional suspicions present? You should clarify your statements versus creating implications. I’m guessing a lot of the other agencies’ feelings involve sour grapes blended with biased thinking, which leaves a bitter taste for all.

Questioning Carolyn Adams’ competency is a pretty bold move, given your lack of expertise in such matters. Let’s presume the State of Illinois has some standards for candidates. Then again, given the politics in Chicago and Illinois, it would not be unprecedented for someone to get a job based on reasons beyond credentials. If you insist on questioning competency, why not start with yours?

It’s also somewhat insulting to question RJ Dale’s competency. Clients have apparently trusted him for over 25 years. Why do you want to call him out now? Your implications that the company is “in over their heads” is insulting too. When was the last time you recommended an agency should resign an account? I’ll bet the answer is never.

Adding insult to insulting, the use of the word “mess” throughout your column is a bit excessive and obsessive. You have presented absolutely zero evidence of wrongdoing on RJ Dale’s part. And yet you’re categorizing the situation as a mess and calling for resignations. Perhaps you should investigate your own motivations.

There are lots of controversies surrounding this scenario. Your viewpoints are adding to the controversies — but in ways you probably don’t even comprehend.

Cordially yours,

HighJive @ MultiCultClassics.blogspot.com