Key Takeaways:
– Republican candidate Tim Sheehy faces scrutiny for questionable business decisions.
– Bridger Aerospace Group, Sheehy’s company, promised jobs but has not delivered.
– A significant portion of a $160 million bond issue went to a private equity firm, not into local job creation.
– Despite company losses, Sheehy received substantial compensation, including hefty bonuses.
The Financing Fiasco
Republican Senate candidate Tim Sheehy, set to run against Senator Jon Tester in a hotly contested race, finds himself in a whirlpool of controversy. He’s under the microscope for a business deal that massively favored wealthy investors instead of his potential future constituents.
Sheehy’s aerial firefighting firm, Bridger Aerospace Group, swayed Gallatin County, Montana commissioners with an attractive proposal back in 2020. They planned to leverage the county’s impressive credit rating to raise $160 million in a bond issue. The company said this money would support their expansion and bring plenty of jobs to the local community. County leaders gave unanimous approval to Bridger’s proposition, filled with high hopes for positive local impact.
But as we sit here in 2024, four years later, the promised prosperity has vanished. The bond money has been used up, with little to show for it in Gallatin County.
The Distressing Results
A shocking $134 million out of the raised $160 million landed straight into the lap of the New York-based private equity firm, Blackstone Group. That’s a whopping 83% of the total bond issue that did not go into creating local jobs as initially promised.
As for Bridger’s pledge to build two new hangars in Gallatin County? Only a solitary one has been constructed. Even more disappointing is the fact that Bridger’s workforce has dwindled rather than expanded.
Justin Marlowe, a public policy professor at the University of Chicago, said it’s crucial to question exactly when and where local benefits come into play when local governments prop up business ventures. If a project goes belly-up, it swiftly raises doubts about the area’s future fortunes.
Company Struggles
Bridger has been hemorrhaging money for years, desperately trying to keep afloat. Between 2022 and now, they have recorded losses amounting to approximately $150 million. This includes $20 million shaved off in the first quarter of 2024, and $77.4 million worth losses the previous year.
Today, Bridger’s stock is trading at a pitiful $3.60 per share. That’s a nosedive of 64% from the price when it first offered shares to the public in 2023. An independent auditor expressed doubts about the company’s survival past the coming year, considering the steep rate of losses. If Bridger goes bankrupt, it might also affect Gallatin County’s credit rating, despite the county not being responsible for the bond repayment.
CEO Salary Issues
In the midst of these grave company struggles, Sheehy’s sizeable compensation package as CEO raises eyebrows. In 2023, when Bridger recorded tens of millions in losses, Sheehy walked away with a base salary of $149,000 and a generous bonus of $2.3 million. The previous year, the company lost $42.1 million, but Sheehy still pocketed a $450,000 base salary plus a bonus of $4.4 million.
Despite his company’s shaky financial position and his own questionable decisions, Sheehy is leading in the polls. If victory swings his way, it could shatter the Democrats’ chances of maintaining Senate control. Regardless of the controversy, it’s clear that the political stakes are high in this high-profile Senate race.