Essay Thirty-Nine

RJ Dale Advertising in Chicago is fighting back against allegations of mismanagement on the Illinois Lottery account. The counterattack includes press releases, radio appearances and more. Kudos to Bob Dale — he’s got more balls than the Mega Millions Game. Check out the latest memo…

From: R.J. Dale Advertising

Bob Dale, RJ Dale Advertising President, Speaks Out on Recent Allegations
Accusations of Mismanagement of Lottery Advertising Unfounded

CHICAGO—(May 12, 2005) On Thursday, May 5, 2005, the Chicago Tribune ran a story on the front page of their Metro Section titled “Lottery blindly paid for ads,” and a subheading which read “Agency gave no proof that commercials ran.” Three reporters received byline credit thereby leaving readers with the erroneous impression that the article had been thoroughly researched.

Two days later, a second front-page story ran in the main section with the headline “Blagojevich has second about-face,” subtitled “He warns ad agency on lottery contract.” The reporter, Rick Pearson, described RJ Dale's $19 million dollar per year, 2-year contract as “a controversial multimillion-dollar lottery advertising contract.” The only thing that's “controversial” is the unprecedented scrutiny RJ Dale has been subjected to.

This is a drama that has been going on for more than a year, ever since RJ Dale was named as the Illinois Lottery’s interim general market agency in February 2004. The drama picked up steam when we won the general market contract in July 2004, after competing with 13 other agencies. Maybe Mr. Pearson and the Chicago Tribune consider the contract controversial because for the first time in the Illinois Lottery's 30-year history a Black-owned advertising agency was allowed to compete for, and ultimately won the contract.

This final (we think) audit/forensic investigation of RJ Dale, which is now coming to a close, is the fourth such investigation endured by us in less than a year. We have compiled and submitted for this final audit over 4500 documents including more than 300 job files to the state’s auditors. We are certain that the findings will show no fraud or attempted fraud, no mismanagement of funds, no improper invoicing or lack of documentation and no missing money. The other very pertinent fact we believe the audit investigation will reveal is that RJ Dale is owed over $150,000 for the period being audited.

Now, referring back to that defamatory Chicago Tribune headline (“Lottery blindly paid for ads. Agency gave no proof that commercials ran.”), RJ Dale and the Illinois Department of Revenue (Lottery) had an agreement that we would maintain all proofs of purchase (media affidavits) in our office rather than attaching them to each Lottery invoice, and the Illinois Department of Revenue would periodically, at its discretion, visit and audit our files and records, which they did. This procedure would insure billing accuracy while saving the state labor cost associated with personnel needed to process such a large volume of paper, and according to the American Association of Advertising Agencies, this is standard industry procedure. Finally, in spite of all the insanity, RJ Dale has helped the Lottery achieve record sales while reversing a 5-year decline in revenue and profits. State records show an 8.35% sales increase in fiscal year 2004 vs. 2003, and $30 million more going to the State’s Common School Fund. You have to wonder why this was never reported.

The four audits we have undergone and the lies in the press are an indication that there are those obsessed with taking this contract from RJ Dale. We have spent 26 years establishing a record of integrity and outstanding performance. We will vigorously defend our reputation against anyone or any company attempting to denigrate our good name.