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[Definitie:] "An ergogenic aid is any substance or phenomenon that enhances performance."
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1 4 - 0 7 - 2 0 0 5 Gov. to Be Paid $8 Million by Fitness Magazines
The publications rely heavily on advertising for dietary supplements - Schwarzenegger vetoed a bill that would have regulated their use
By Peter Nicholas and Robert Salladay SACRAMENTO Two days before he was sworn into office, Gov. Arnold Schwarzenegger accepted a consulting job paying an estimated $8 million over five years to "further the business objectives" of a national publisher of health and bodybuilding magazines. The contract pays Schwarzenegger 1% of the magazines' advertising revenue, much of which comes from makers of nutritional supplements. Last year, the governor vetoed legislation that would have imposed government regulations on the supplement industry. According to records filed Wednesday with the Securities and Exchange Commission, Schwarzenegger entered into the agreement with a subsidiary of American Media Inc. on Nov. 15, 2003. The Boca Raton, Fla.-based company publishes Muscle & Fitness and Flex magazines, among others. Watchdog groups and state lawmakers called the contract which refers to Schwarzenegger as "Mr. S" a conflict of interest. Larry Noble, executive director of the Center for Responsive Politics in Washington, D.C., said: "This is one of the most egregious apparent conflicts of interest that I have seen. This calls into question his judgment as to who he is working for, and it calls into question what he thinks he owes the public." He added: "For a governor to have contracted his decision-making and judgment to a company is a real conflict of interest." The law allows governors and other elected officials to keep outside jobs. Assembly Speaker Fabian Nu๑ez (D-Los Angeles) has been paid $35,000 a year by the Voter Improvement Program in Los Angeles, a nonprofit organization created by the former president of the Los Angeles County Federation of Labor. A Schwarzenegger spokeswoman, Margita Thompson, said that his financial holdings were "probably the most complicated of any governor" and that he had complied with all laws for disclosing his income. She said the consulting contract presented "no conflict of interest" because Schwarzenegger did not solicit any advertising. "The governor did not direct sales or marketing activities of American Media and did not have personal contact with any advertisers to generate the advertising revenue," Thompson said. The contract calls for the governor to help the company through his own suggestions and by "being responsive to the reasonable requests" of Weider Publications, a subsidiary of American Media. In a concession to Schwarzenegger's job as California governor, the agreement says that he is not compelled to work for the company during "normal business hours on business days." "Mr. S shall seek in good faith to make himself available from time to time to Weider" after the workday or on weekends, the filing says. As recently as a few days ago, American Media refused to say anything about Schwarzenegger's pay. The company filed an 83-page annual financial statement with the SEC last month that, in one paragraph, mentioned a consulting agreement with an unnamed "third party." Stuart Zakim, an American Media spokesman, refused to say whether the third party was Schwarzenegger. American Media, which also owns the National Enquirer, the Globe and the Star tabloids, made public the terms of Schwarzenegger's contract in a separate SEC filing Wednesday. The governor announced last year that he had agreed to become executive editor of Muscle & Fitness and Flex. He writes monthly columns for both, dictating them to the editorial staff of the magazines. The governor's office had declined to reveal his salary. The SEC filing by American Media, which followed repeated inquiries by The Times, is the first public indication of the size of the contract. Schwarzenegger's financial disclosure statement covering 2004 shows that he received an undisclosed amount of income from American Media. But the state form calls for little specificity, requiring only that public officials report income in excess of $10,000. The statement offered no more detail. And unlike past governors, he has declined to make his tax returns public. The contract shows that Schwarzenegger's firm, Oak Productions, gets 1% of the subsidiary's annual advertising revenue. It holds that "in no event" will payment be less than $1 million a year.
The agreement estimates that the governor's company will receive $2.15 million in fiscal year 2006; the same amounts in '07 and '08; and $1.7 million in '09. Those sums exceed the salary of the chairman and CEO of American Media, David J. Pecker, whose base pay this year is listed at $1.5 million. American Media has also agreed to contribute $1.5 million over six years to one of the governor's tax-exempt groups: a physical fitness council launched this summer at Disney's California Adventure theme park. The chairman of the council is Austin M. Beutner, a director of American Media. As a consultant, Schwarzenegger's role includes "advising on the direction of the" magazines and "otherwise helping in various ways to further the business objectives of the Weider business," the contract shows. Weider Publications was started by longtime bodybuilding promoter and Schwarzenegger patron Joe Weider, who brought Schwarzenegger to the U.S. in 1968. Weider sold his magazines to AMI in 2003. Schwarzenegger's two muscle magazines are crammed with ads for performance-enhancing dietary supplements promising chiseled bodies and surges of energy. The 257-page August issue of Muscle & Fitness contains 110 pages of ads for supplements, from creatine ethyl ester to anabolic/androgenic "absorption technology." The governor used his regular column in the June issue of Muscle & Fitness to defend the supplement industry. He vowed to oppose any effort to restrict sales of the products in California, writing that he is "so energized to fight any attempt to limit the availability of nutritional supplements." An article in the August issue of Muscle & Fitness said Schwarzenegger had "lent his support" to a new lobbying group that would work to promote nutritional supplements. "The governor also made it clear that he will remain a phone call away as the coalition progresses," the magazine said. Schwarzenegger's office characterized the article as "hyperbole." Last year, the governor vetoed a bill by state Sen. Jackie Speier (D-Hillsborough) that would have required coaches to take a course in performance-enhancing supplements, created a list of banned substances for interscholastic sports and barred supplement manufacturers from sponsoring school events. In his veto message, the governor said that most dietary supplements were safe and that Speier's bill would have been difficult to implement. He also said the bill unfairly focused on "performance-enhancing dietary supplements (PEDS) instead of focusing on ensuring that students participating in high school sports are not engaged in steroids use." Speier said in an interview Wednesday: "I have got to believe the electorate will be incensed that he has this relationship, that he has not been upfront in disclosing it, that he has taken action on legislation that has an impact on the very industry from which he is indirectly receiving financial support." Thompson said Schwarzenegger is committed full time to his job as governor: "We just signed a budget, and the governor has a reform agenda. I don't think anyone could dispute that he has been absolutely focused on his agenda and the state, from the media perspective, from the institutional perspective and from a civic perspective." American Media's publications have been Schwarzenegger boosters since he formed a partnership with the company. That wasn't always the case. The National Enquirer published an article in 2001 alleging that Schwarzenegger had had an extramarital affair. Two years later, just before Schwarzenegger signed the contract, American Media produced a 120-page glossy magazine called "Arnold, the American Dream." In a new book about Schwarzenegger, author Laurence Leamer said the governor was aware that his contract with AMI would prompt the publisher to end any negative coverage of him. In the book, Schwarzenegger is quoted as saying: "Do you want to work with someone who you are attacking?" For his pay, the governor's most public role is his monthly columns. A seven-time Mr. Olympia winner, he speaks with the magazine editors by phone every few weeks. They take notes, draft a column and send it to him for review, said Vincent Scalisi, editor-in-chief of Muscle & Fitness. "Obviously, we know that he has a busy, full-time job," Scalisi said in an interview in recent months. "And we don't want to be a drain. But the reality is what a wonderful resource we have access to." Re: Arnold is getting $8 million dollars from AMI - Weider
Insider X
Here is the originally press release from March 6, 2004. All it says is that he will receive $250,000 a year. Nowhere does it say that he will receive 1% of all AMI's revenues each year, or $1 million dollars minimum. Not bad, but the investorys are going to be very mad about this. Original Press Release David Pecker, CEO of America Media, Inc. announced today that California Governor Arnold Schwarzenegger will serve as the Executive Editor of two of the word's most popular fitness magazines - FLEX and Muscle & Fitness. "I've made it my mission over the years to educate people about the enormous benefits of physical fitness," Governor Schwarzenegger said. "To continue this mission, I am turning to my lifelong partners, Muscle & Fitness and FLEX magazines. I believe that together we can encourage millions of Americans to take charge of their health and improve their lives." Schwarzenegger will continue to author the column he was written for Muscle & Fitness for almost ten years and will play a role in long-term strategic planning for the magazines. The announcement comes as a result of a strong relationship forged between the magazines and Schwarzenegger. He was first invited to appear on the cover of Muscle Builder / Power in 1968 by Joe Weider, the original publisher, after winning two consecutive Mr. Universe titles. In 1980, the magazine was renamed Muscle & Fitness, and in 1983, it spawned a second successful magazine called FLEX. Schwarzenegger subsequently appeared on the cover of Muscle & Fitness more than 30 times and on the cover of FLEX nearly 20 times throughout his bodybuilding and film careers. "I can't imagine anyone in the world who better represents the ideals of self-improvement and achievement that FLEX and Muscle & Fitness stand for than Arnold Schwarzenegger," said David Pecker. "He is living proof that you can achieve your dreams." Muscle & Fitness and FLEX have very generously committed to $250,000 annually for at least the next five years to the Governor's Council on Physical Fitness. The Council's mission and the mission of the magazines are practically identical - educating people on fitness and encouraging them to improve their lives. AMI is one of the largest media companies in the U.S. The company publishes six of the 14 best selling weekly magazines, including the National Enquirer and Star. AMI recently acquired Weider Publications, the leading publisher of health and fitness titles including Muscle & Fitness, FLEX, Shape and Men's Fitness. 1 4 - 0 7 - 2 0 0 5 Lawmaker calls on Schwarzenegger to cut ties to fitness magazines
By TOM CHORNEAU
(07-14) 12:06 PDT SACRAMENTO, (AP) -- A state lawmaker on Thursday denounced Gov. Arnold Schwarzenegger's multimillion dollar deal with several fitness magazines that promote nutritional supplements, saying the arrangement represents a clear conflict of interest. A Securities and Exchange Commission filing shows Schwarzenegger is being paid about $8 million over five years to act as a consultant for several magazines published by American Media Inc., including Flex and Muscle & Fitness. The publications derive much of their profit from firms advertising nutritional supplements. Last year, Schwarzenegger vetoed a bill seeking to crack down on the use of performance-enhancing substances in high school sports. The bill's sponsor, Sen. Jackie Speier, called on Schwarzenegger to sever his ties with the publisher. "The governor of the state of California makes some important decisions every day. Today, he has to make a decision about a conflict of interest his own," Speier said during a news conference at the Capitol. "It's time for him to step up and show some leadership." Schwarzenegger's office had no immediate response to Speier's comments. On Wednesday, after the SEC filing, a spokeswoman for the governor said the arrangement does not represent a conflict of interest. The governor also has disclosed all his financial holdings, spokeswoman Margita Thompson said. "The governor did not direct sales or marketing activities of American Media and did not have personal contact with any advertisers to generate the advertising revenue," she told the Los Angeles Times. The governor does not accept his $175,000 annual salary from the state, and California law allows elected officials to keep outside jobs. Schwarzenegger's consulting contract calls for him to receive 1 percent of the magazines' advertising revenue each year for five years, a sum that could total $8 million. Government watchdog groups reacted swiftly Thursday to the financial arrangement revealed in the SEC filing. A spokesman for the Santa Monica-based Foundation for Taxpayer and Consumer Rights said Schwarzenegger hid from the public "a significant source of revenue that was given to him to advocate for the interest of an industry." "The fact that Schwarzenegger did not reveal the economic interest to the public and yet vetoed a bill that directly helped the supplements industry is something that deserves legislative hearings and could possibly lead to a charge of misconduct in office," foundation president Jamie Court said. The governor's financial disclosure filings with the state show only that he received an undisclosed amount from American Media. Schwarzenegger writes monthly columns for Muscle & Fitness and Flex, and last year announced that he had agreed to serve as executive editor for both. At the time of the announcement, Schwarzenegger said he would take a salary that was "petty compared to the movies." The magazines also agreed to donate $250,000 a year to the California Gov.'s Council on Physical Fitness. The SEC filing, which refers to Schwarzenegger as "Mr. S," also shows that American Media is paying $100,000 a year for five years to the Arnold Classic, an annual bodybuilding competition in Ohio. The bill that Schwarzenegger vetoed last year would have required high student athletes to pledge not to use performance-enhancing substances, created a list of banned substances and barred supplement makers from sponsoring school events. In his veto message, Schwarzenegger said key parts of the bill were unclear and that it was focused erroneously on dietary supplements rather than on steroids, which he has acknowledged using during his bodybuilding career. Speier at the time said the governor was putting the interests of supplement makers above the well-being of student athletes. On Thursday, she said she does not know whether the governor broke a law but said it was not appropriate for him to hold such an outside job. "The public of this state expect and deserve a full-time governor," she said. Speier has a similar bill pending this year. 1 5 - 0 7 - 2 0 0 5 Governor won't give up 2nd job
Critics say income from magazines could appear unseemly
Mark Martin and Christian Berthelsen
Sacramento -- Gov. Arnold Schwarzenegger's spokesman said Thursday that the governor will keep his second job as editor of two bodybuilding magazines, despite new calls for him to sever ties with the magazines because the governor's outside income of at least $5 million creates the appearance of a conflict of interest. A contract the governor entered into with Muscle & Fitness and Flex magazines two days before becoming governor in 2003 pays Schwarzenegger 1 percent of the advertising revenue of the magazines or at least $1 million a year for five years. While the governor previously acknowledged receiving income from the media company, the exact amount was not revealed until the magazines filed a report with the U.S. Securities and Exchange Commission this week.
The magazines are filled with ads promoting nutritional supplements. After the governor started collecting the income, records show, he vetoed legislation that would have banned the use of some nutritional supplements among high school athletes. The Bay Area lawmaker who authored the bill and several political watchdogs suggested Schwarzenegger's personal income -- apparently unprecedented for California governors in recent decades -- is not illegal but looked wrong, given the governor's potential effect on the industry he is drawing income from. State Sen. Jackie Speier, D-Hillsborough, who authored the bill the governor vetoed, called on Schwarzenegger to end his stint as executive editor of the two magazines. "His income is directly linked to the advertisements that appear in that magazine,'' Speier said at a Capitol press conference. "It places him in a situation where people can make the claim that there is a conflict of interest.'' But a spokesman for the governor said Schwarzenegger -- who declines to accept the $175,000 annual state salary for serving as governor -- would continue with the magazines and accused Speier of "grandstanding.'' Rob Stutzman, Schwarzenegger's communications director, noted that the governor had announced he was working for the magazines last year, and his position as a proponent of supplements was well known. "The governor clearly told everybody here, including all the people of California, about the business arrangement with a magazine he has been associated with for 30 years,'' Stutzman said. "We disclosed that there was such an agreement, and that there was significant income involved.'' Stutzman at the time referred to the amount of compensation as "petty compared to the movies.'' Schwarzenegger's last movie role was reported to have earned him at least $30 million. Schwarzenegger's economic disclosure report acknowledges income from the company that owns the magazines, American Media Inc., but does not require him to list the total amount of compensation. A spokesman for American Media Inc. told The Chronicle in January that Schwarzenegger was not receiving any personal income for his work on the magazines. But on Wednesday, the company outlined the details of the agreement with Schwarzenegger in an SEC filing. According to the filings, which at times refer to Schwarzenegger as "Mr. S," the company is paying Schwarzenegger and also giving annual contributions of $100,000 to a bodybuilding competition founded by Schwarzenegger and annual contributions of $250,000 to a state fitness council Schwarzenegger recently revived. The reports estimate total payment from the company could amount to more than $8 million for the final four years of the contract. The first year's payment is not disclosed, but based on the estimate for the other four years, the total contract could be worth $10 million. Officials at American Media Inc. refused to comment Thursday. The contract calls for Schwarzenegger's salary to begin in 2004, and the deal goes through 2009. The governor writes a monthly column and is featured throughout the magazine. While declining most interviews with California political reporters, he spoke from the governor's office to Muscle & Fitness for its August edition, for example. The August edition of Flex contains an article describing how Schwarzenegger offered encouragement to representatives of more than 20 supplement companies seeking to counter efforts to regulate their products. The article details a March meeting in which the governor said he was "a phone call away'' if they needed help. Because the governor has refused to release his tax returns, it's unclear how much he made from the deal in 2004. Speier carried legislation last year that would have required state health officials to compile a list of supplements that would be prohibited for high school athletes. Schwarzenegger vetoed the bill in 2004, saying it was vaguely written and noting that "most dietary supplements are safe.'' Stutzman noted Thursday that Schwarzenegger "has used supplements throughout his life, and he doesn't believe they should be regulated by the government.'' Speier is carrying similar legislation this year, including more specific language on what types of supplements should be banned. Stutzman said the governor was interested in working with Speier on a compromise. The bill calls for a prohibition of the ingredient synephrine, which Speier said was closely related to ephedrine. One product advertised in a six-page spread in this month's Muscle and Fitness - Lipo-6 - contains synephrine. Political ethics experts said Schwarzenegger broke no laws by acting on a bill that affected an industry he is deriving profit from. There is a law that prevents some elected officials from enacting any policy that is a financial boon to a specific company the official has economic interest in, said Bob Stern, president of the Center for Governmental Studies in Los Angeles and a former official with the state's Fair Political Practices Commission. But Stern said Schwarzenegger's veto of the Speier bill wouldn't apply, because it affected an entire industry, not one company. "It's not a legal issue -- it's an ethical one,'' Stern said. Other watchdogs also called on Schwarzenegger to end his relationship with the magazines. Kathay Feng, executive director of California Common Cause, noted the governor ran in the recall election as "a new kind of politician who would be above influence from outside interests.'' "To be lambasting other electeds for taking money and then do the same thing by signing this contract on the eve of his inauguration is sort of mind blowing,'' Feng said. 1 5 - 0 7 - 2 0 0 5 In Magazine Editorials, Governor Touts the Joys of Bodybuilding
In his columns, Schwarzenegger also supports diet supplements, which are big advertisers in the publications
By Carla Hall
"Don't Be a Slave to Bodybuilding Enjoy It" counsels Arnold Schwarzenegger in a headline above his editorial in the current issue of Muscle & Fitness magazine. Next to a page advertising a grape-flavored protein drink, the governor takes on the role of executive editor, lamenting that some bodybuilders "with somber expressions" have turned the sport into drudgery. "They carry gallon-size plastic jugs of water, as if their bodies will need that amount during the next few minutes. They have to eat nothing but chicken and rice, even though the next contest is months away. Does any of that seem joyful? Not to me." Schwarzenegger may have taken a leave of absence from movie acting to be governor, but he's still preaching the workout gospel as executive editor of Muscle & Fitness and Flex magazines, the bodybuilding buffs' bibles put out by American Media, which employs him for at least $1 million a year. Each month the magazines feature an editorial by Schwarzenegger although, as Vincent Scalisi, editor in chief of Muscle & Fitness, has told the Los Angeles Times, Schwarzenegger doesn't write them. He sort of dictates them: The governor chats by phone with editors who take notes, write drafts, and then send them off for him to approve, according to Scalisi. The editorial that appears in Muscle & Fitness one month is almost identical to the editorial in the issue of Flex dated one month earlier. The governor's most controversial editorial was his impassioned defense of dietary supplements ads for which carpet Muscle & Fitness. "All too often, dietary supplements have been lumped into the same category as harmful anabolic steroids," writes Schwarzenegger in his June editorial in Muscle & Fitness (and the May 2005 Flex). He adds that he supports bans on steroids but makes it clear that "to ban dietary supplements such as protein powders, multivitamins, glutamine, etc., is misguided and wrong," and points out that he vetoed a recent state bill restricting performance-enhancing dietary supplements. "To show true concern, why don't we pass a law that takes junk food out of schools?" he writes. Schwarzenegger also said the magazines that employ him should show people the difference between dietary supplements and illegal steroids "and ultimately protect the kind of right America's forefathers wrote into our Constitution: the freedom of choice." In a June 2004 column for Muscle & Fitness, he wrote about seeing his first copy of Muscle Builder/Power the precursor to Muscle & Fitness in an Austrian gym when he was 15 years old. The magazine inspired him not just to become a bodybuilder but to learn English as well, he wrote. "The magazine created the foundation of the person I am, and it is a debt that I will never be able to repay," Schwarzenegger wrote. And of its then-publisher, who invited Schwarzenegger to come to California, he says: "Joe Weider, who had offered me an endorsement contract soon after I arrived in America, was the father figure, and I was the magazine's No. 1 son." His columns frequently lavish praise on the magazine and its owners. They reciprocate: An "exclusive interview" with the governor in the August issue of Muscle & Fitness gushes: "Arnold Schwarzenegger is the most famous person in the world." Over the last year, his columns have dispensed straightforward, common-sense approaches to weight training, anecdotes about his early bodybuilding career and critiques of current trends in the sport he almost single-handedly popularized. Once possessed of fabled physical proportions, Schwarzenegger rues the bodybuilders' fixation with muscle mass over proportion. "Now we see guys in the pro ranks who are huge with distended stomachs and no abdominal control," he says in his June column in Flex. He scoffs at their poses "More often than not, competitors substitute gyrating and stomping around the stage for actual posing." In his editorials, he exalts both the physical and mental benefits of physical training. "When I was campaigning my advisors often tried to tell me that I couldn't possibly fulfill all the obligations I had set for myself," he writes in the March 2005 Muscle & Fitness. "I immediately countered, 'You think this is tough? You should try my chest-back superset workout.' " He also shares amusing moments from his past. In an October 2004 Flex column memorializing the legendary gym owner Joe Gold, he says Gold called him "balloon belly," a reminder that the fledgling bodybuilder needed to work on his abs. "When Joe insulted you, it was a sign that he liked you," Schwarzenegger wrote. Schwarzenegger to End Ties to Magazines
By TOM CHORNEAU
Associated Press Writer
SACRAMENTO, Calif. (AP) - Gov. Arnold Schwarzenegger said Friday that he will end his multimillion-dollar consulting deal with two fitness magazines that rely heavily on advertising for nutritional supplements.
The governor, who came under fire when critics said the deal represented a conflict of interest, said he will relinquish his title as executive editor of Muscle & Fitness and Flex magazines and forego any compensation.
``I don't want to be paid,'' Schwarzenegger said in a telephone interview with The Associated Press, adding that he wanted to leave no doubt that ``the people have my full devotion.''
The governor was forced to defend his contract with the magazines after a securities disclosure filed this week showed he would be paid at least $1 million a year for five years to act as a consultant.
``The decision is to discontinue the relationship we have now,'' he said. ``I will continue promoting body building and fighting obesity.''
Last year, Schwarzenegger vetoed a bill that would have regulated the use of performance-enhancing substances in high school sports.
That led some lawmakers to accuse the governor of having a conflict of interest: acting on legislation that could hurt the nutritional supplements industry while at the same taking millions of dollars from magazines that rely on the industry for most of their profits.
Schwarzenegger's deal with a subsidiary of American Media Inc., Weider Publications, was disclosed in March 2004. But the amount he was being paid was not made public until the company filed documents Wednesday with the Securities and Exchange Commission.
At the time of the 2004 announcement, Schwarzenegger said he would take a salary that was ``petty compared to the movies.'' The magazines also agreed to donate $250,000 a year to the California Governor's Council on Physical Fitness.
The governor has admitted using steroids during his days as a champion body builder, when the substances were legal, but has since denounced them. He has continued to promote nutritional supplements.
``Any food supplement you take, all those are natural and will help you have more energy and help with your performance,'' the governor said ``No reason I thought to outlaw food supplements, something I've been on my whole life.''
He also said he will continue writing columns for both magazines but will not be paid. He said he has no plans to return the money from the consulting work ``because we haven't done anything wrong.''
In vetoing the bill a year ago, the governor said it was flawed because it did not clearly define supplements and failed to adequately address steroid use.
A similar bill is pending this year, and Schwarzenegger said he would be ``more than happy'' to consider the redrafted version.
``I want to do everything I can to get rid of the performance-enhancing (substances),'' he said Friday.
California law allows elected officials to keep outside jobs, and Schwarzenegger does not accept his $175,000 annual salary from the state.
The contract stated that Schwarzenegger would receive 1 percent of the magazines' advertising revenue each year for five years. The payment was to be no less than $1 million a year but could reach much higher.
The governor's financial disclosure filings with the state showed only that he received an undisclosed amount from American Media, which also publishes The National Enquirer, Star and other celebrity tabloids.
A telephone call to American Media's office in Boca Raton, Fla., went unanswered late Friday.
The SEC filing, which refers to Schwarzenegger only as ``Mr. S,'' also showed that American Media is paying $100,000 a year for five years to the Arnold Classic, an annual bodybuilding competition in Ohio.
Schwarzenegger said Friday that he has had ``an extraordinarily close personal and business relationship'' with Weider Publications for more than 35 years and saw no reason to end it after he was elected governor in 2003.
``Sometimes there's two different things - there's reality and there's perception, and perception is very powerful,'' the governor told the AP.
1 6 - 0 7 - 2 0 0 5 Schwarzenegger to end magazine deals
By Kate Folmar and Laura Kurtzman SACRAMENTO - Retreating after a day of intense criticism, Gov. Arnold Schwarzenegger on Friday said he would end his $5 million contract with two fitness magazines that rely on advertising from the controversial dietary supplement industry. Critics said Schwarzenegger had a conflict of interest, because last year he vetoed a bill that would have barred high school athletes from using certain supplements, even as he was being paid by the magazines, ``Muscle & Fitness'' and ``Flex.'' They also said governors should not moonlight. ``I don't want there to be any question or doubt that the people have my full devotion,'' Schwarzenegger said in a statement released Friday afternoon. ``Therefore, effective today, I will relinquish my title as executive editor and forego any compensation from the magazines.'' The governor, however, said will keep the money he has earned so far, telling the Associated Press he has done ``nothing wrong.'' The about-face came one day after his chief spokesman dismissed the dust-up as ``much ado about nothing.'' A former Mr. Olympia, the governor has long spoken about the positive effects of supplements. And he has a longstanding friendship with Joe Weider, who founded the magazines and brought Schwarzenegger to America when he was a young bodybuilder. Schwarzenegger -- a wealthy former actor who declines his $175,000 annual salary as governor -- reportedly had time to reflect on the matter after returning to California early Friday morning from a brief trip to a border governors' conference in Mexico. The controversy threatened to overshadow Schwarzenegger's rocky campaign for three ``Year of Reform'' ballot initiatives in November. The Republican governor's popularity has plummeted as he pushes a spending limit, tries to make it take longer for teachers to achieve tenure and attempts to give retired judges, instead of legislators, the power to draw political boundaries. ``This story had the potential to be a major distraction,'' said Hoover Institution fellow Bill Whalen, who was former Republican Gov. Pete Wilson's chief speech writer. ``Particularly when you consider that, at the heart of the special election, is the governor claiming a higher moral ground than the special interests and the Legislature. This story undermined that position.'' ``Give him credit,'' Whalen added, ``he walked away from a lot of money.'' The debate also has emboldened lawmakers to try tightening state law. Sen Jackie Speier, the San Mateo Democrat who wrote the supplement bill vetoed by the governor, said she would push for more curbs on conflicts of interest. Assemblyman Mark Leno, D-San Francisco, wants more details required on the economic interests documents elected officials must fill out. Leno called the governor's decision ``wise.'' But, he added, ``it was surprising to me that the governor's office didn't immediately recognize the serious ethical concerns, as well as the public relations firestorm, that would have immediately engulfed him. ``Better late than never, I guess.'' Schwarzenegger's five-year consulting contract was inked two days before he took office in 2003, but not announced until last March. At the time, his aides highlighted that American Media Inc., which publishes the fitness magazines and the ``National Enquirer,'' were donating money to the governor's charitable physical fitness foundation. His exact salary for writing monthly magazine columns did not have to be disclosed in his statement of economic interests. It was revealed in an AMI filing to the Securities and Exchange Commission Wednesday. Larry Noble, executive director of the Center for Responsive Politics, said Schwarzenegger had done the right thing, but he wondered whether the governor was acknowledging a problem or bowing to political pressure. Garry South, a Democratic consultant, noted that the governor's team first defended the deal. ``Couple of days too late, don't you think?'' South said the matter was particularly damaging because it could be so easily understood. ``It's just so simple,'' he said. ``He signed a contract two days before he was sworn in as governor.'' Also Friday, Assembly Speaker Fabian N๚๑ez issued a statement saying he was no longer consulting for the labor-backed Voter Improvement Program. His $35,000 consulting job had generated controversy earlier this year and N๚๑ez, D-Los Angeles, said he would consider whether to end the relationship. Under California law, it is legal for lawmakers to have outside jobs. But, Schwarzenegger is believed to be the first modern governor to do so. Schwarzenegger's statement
Governor Arnold Schwarzenegger made the following statement regarding his magazine deals:
For more than 35 years I have had an extraordinarily close personal and business relationship with Weider Publications. Given that bodybuilding and fitness have been central to my life I saw no reason to discontinue that relationship when the franchise was sold in 2003. When I became Governor I pledged to put the people of California front and center. I don't want there to be any question or doubt that the people have my full devotion. Therefore, effective today I will relinquish my title as executive editor and forego any compensation from the magazines. I will continue to promote weight resistance training, health and fitness for all through any avenue that is available to me as I have done my entire life.
2 0 - 0 7 - 2 0 0 5 Complaint Filed Over Gov.'s Magazine Scandal
ABC7 In the rarified air of the California capitol, almost anything can become a federal case, as they use to say. Even though the Governor has cancelled his multi-million dollar moonlight job with a large health and fitness company, Democrats are hollering scandal. ABC7's Capitol Correspondent Nannette Miranda reports. The California Democratic Party filed the paperwork Tuesday afternoon.The party accuses the Governor of violating conflict of interest and gift laws when he agreed to take $8 million dollars as a consultant for two fitness magazines. Bob Mulholland, CA Democratic party adviser: "It's illegal to be raising this kind of money as Governor for personal reasons. It's against state law." The Governor backed out of the magazine contract last week under pressure, but that clearly isn't enough for Democrats. The complaint accuses him of publishing articles in 'Muscle & Fitness' and 'Flex' for money and then vetoing a bill that would have placed regulations on the dietary supplements industry which heavily advertises in those magazines. The Democratic Party also says the former bodybuilder exceeded the $360 dollar limit on gifts. His spokeswoman today said the complaint is just a ploy to divert attention away from the Governor's agenda. Margita Thompson, Governor's Press Secretary: "The Governor was willing to move swiftly to put this issue to rest so that we could move ahead and focus on those issues that are important to the people of California, hopefully getting a bi-partisan legislative agreement on the November ballot." The Governor could be fined as little as $5,000 dollars, or as much as he has already accepted in payment. The Fair Political Practices Commission could also refer the complaint to the Sacramento District Attorney or Attorney General's office for criminal charges. Schwarzenegger yesterday joked about what giving up that money meant. Gov. Arnold Schwarzenegger, R-California: ""Well, I have no problem with the money, but my wife had a little problem with that. She was worried that means less diamonds or something like that." Bob Mulholland, CA Democratic party adviser: "It's absurd. We need a serious Governor and this Governor Schwarzenegger is far too immature for this." 2 3 - 0 7 - 2 0 0 5 Before and After, Supplements in the Picture
Schwarzenegger stays connected to an industry he helped build. Ethics issues arise.
Los Angeles Times SACRAMENTO Gov. Arnold Schwarzenegger ended his $8-million contract with a muscle magazine publisher last week. But his deep emotional, political and business ties to bodybuilding and to the supplement industry that feeds it won't be so easily severed.
Since becoming governor, Schwarzenegger has remained closely involved with the bodybuilding world and with the supplement companies whose products promise such things as ripped muscles, "thermonuclear" energy and better sex. According to documents and interviews with industry leaders, Schwarzenegger has continued to give the industry advice. He has participated in private meetings about government regulations. The governor also received personal income from the Arnold Classic bodybuilding contest, which serves as a showplace for supplements. And since entering politics, he has accepted $242,000 in contributions to his gubernatorial campaign and other causes from individuals and companies connected to the bodybuilding and supplement industry. Supplement makers say the governor is strongly in their corner. "Arnold is first and foremost a good diplomat for the bodybuilding and sports supplement industry," said Lee Labrada, a former Mr. Universe and president of Labrada Nutrition, which sells such products as an "embryonic peptide matrix" and "Super Charge" energy drink. After questions arose about potential conflicts of interest, the governor last week ended his relationship with American Media Operations Inc., publisher of Muscle & Fitness and Flex. He also said he would stop taking income from the bodybuilding and supplement exposition that carries his name. Few people would be surprised that Schwarzenegger has contacts with the bodybuilding industry as a seven-time Mr. Olympia, he is perhaps the most famous bodybuilder in the world. But now that he is governor, state conflict-of-interest rules apply to him. State law requires public officials to perform their duties "free from bias caused by their own financial interests or the financial interests of persons who have supported them." His contract with American Media required him to "further the business objectives" of the company. Schwarzenegger's aides said the governor has no direct financial connection to the supplement industry, even though the industry's ads dominate the muscle magazines that paid him. They said the governor had no conflict of interest when he vetoed a bill in 2004 that would have regulated supplements the magazines paid Schwarzenegger, not the advertisers. Rob Stutzman, the governor's communications director, said Schwarzenegger supports numerous business endeavors including the real estate industry and the California Chamber of Commerce and his support for the supplement industry should not be surprising given his history. "His long documented involvement with supplements is a deeply held personal belief," Stutzman said, "just as his beliefs about [not raising] taxes and about the need to reform California and build highways to the future." One of the main sponsors for the Arnold Classic bodybuilding competition is General Nutrition Centers, a shopping mall retailer that is one of the largest sellers of supplements. Company spokesman Steven Nelson said the Arnold Classic "allows us to connect with one of our largest segments of customers: the sports enthusiasts and bodybuilders." Just before taking office in 2003, Schwarzenegger reported personal income from two dozen bodybuilding and supplement companies such as SportPharma, Twinlab, VPX and Pinnacle Bodyonics. The income was funneled through his former company, Classic Productions Inc., which produces the Arnold Classic in Ohio every year. After taking office, Schwarzenegger ended his ownership stake in Classic Productions, his aides said, although he still received an income from the company until last week. Like his American Media contract, Stutzman said the relationship with Classic Production was ended to avoid "any distraction his political opponents or the media can use against him." Stutzman said Schwarzenegger would not return any money he received from the two Arnold Classics that have taken place while he has been governor. He also will not return money he has received from the magazines. Under California campaign laws, Schwarzenegger is not required to disclose the exact amount he received from those contracts, only that he was paid more than $10,000 for each. Even while governor, Schwarzenegger's involvement with supplement companies extends to regulatory and political issues as well. At the Arnold Classic convention last March in Ohio, Schwarzenegger attended a private meeting with executives from the nutritional supplement industry whose products have been under fire by California lawmakers and regulators. Jeff McCarrell, co-founder of supplement maker Nutrex Research Inc., and Labrada said they attended the meeting, where the governor spoke with industry executives about protecting their products from government interference. They said Schwarzenegger was enthusiastic about helping them. "I've been in this business for 17 years, longer than most people in that room, and I can tell you I had never seen his involvement as much as I did that day," McCarrell said. "I had never seen him say as much about the industry as he did that day." He added: "He is not going to abandon it; he does believe in dietary supplement and he is going to support us in every way he can." David Pecker, chief executive of American Media, organized the March 5 meeting to announce the formation of the Sports & Fitness Supplements Assn. The group of 20 supplement makers is being assisted by the Washington lobbying firm of Parry, Romani, DeConcini & Symms. Both Pecker and a representative from the lobbying firm declined to comment. According to an article in the July issue of Flex, Schwarzenegger "urged everyone in the industry to stand together and speak loudly and cohesively as we deliver the message that supplements are not only safe when taken as directed but beneficial." In an interview, Labrada said he thought Schwarzenegger attended the meeting as a "representative for fairness when it comes to sports nutrition . More than anything, he came to assure us that we were going to be treated fairly." Last year, Schwarzenegger vetoed a bill that would have required coaches to take a course in performance-enhancing supplements, created a list of banned substances for interscholastic sports and barred supplement manufacturers from sponsoring school events. In his veto message, an official state document, Schwarzenegger said most dietary supplements were safe. He also said the legislation unfairly focused on "performance-enhancing dietary supplements (PEDS) instead of focusing on ensuring that students participating in high school sports are not engaged in steroids use." Muscle & Fitness and Flex, two American Media publications, are dominated by advertising from supplement makers. Ads for some products run over multiple pages. One advertisement by VPX Sports, which Schwarzenegger disclosed as providing income to him through the Arnold Classic, sells a "freeze & burn rapid fat loss and energy technology" drink. Schwarzenegger attained worldwide stature through bodybuilding, an industry that relies on specially designed foods and powders to bulk up and get energized. His longtime patron, Joe Weider, was an early entrepreneur in the supplements world and began relying on Schwarzenegger to promote his products soon after he brought him to America in 1968. "He is the Jack Nicklaus of our sport," said Ironman Magazine publisher John Balik, who gave a $2,000 donation to Schwarzenegger's initiative committee last year. "He helped put the sport on the map. He was one of the seminal figures." Balik said in an interview that he made the $2,000 donation modest by Schwarzenegger's standards because he is a friend dating to the 1960s, when the two worked out at the original Gold's Gym in Venice, and the now wealthy governor was "making $100 a week." Balik said he believes Schwarzenegger signed the American Media deal not so much for the money but because he retains an "emotional connection" with bodybuilding. "He's is not the kind of person who is going to be affected by the money never," said Charlotte Parker, Schwarzenegger's former longtime movie publicist. "He likes to be fairly compensated for what he does, but that would never compromise what he wants to do. He is committed to being governor." Parker now serves as a spokeswoman for Weider Health and Fitness, the nutritional supplements company co-founded by Joe Weider. In 2003, Weider sold an archive of Schwarzenegger photographs and seven magazines, including Muscle & Fitness and Flex, to American Media Operations Inc. for $350 million in cash, but retained the supplements business. Parker said she was unaware of any business relationship with the supplements business run by Weider and Schwarzenegger. In 1994, Schwarzenegger presented an award to U.S. Sen. Orrin G. Hatch of Utah for his work to protect the supplement industry from government interference. The award was sponsored by Weider nutrition. Weider has also been a regular source of money. Weider Publications gave $68,000 in 2002 to Schwarzenegger's after-school program initiative, Proposition 49. Weider Health and Fitness, a Woodland Hills-based firm that markets pills and powders that promise to help consumers bulk up, has donated $37,000 to various Schwarzenegger campaigns dating to 2003. The governor also has received $93,000 in campaign contributions from the family of Harold Zinkin, a Fresno body builder who died last year. Other donors with stakes in the muscle-building business include Tony Robbins, who contributed $22,300 to Schwarzenegger's reelection and $25,000 to the California Republican Party earlier this year. Robbins is an owner and vice chairman of IdeaSphere Inc., the Michigan firm that recently bought supplement maker Twinlab Corp., of New York. The company said in a statement that it does not have "any direct financial relationship with the governor." Robbins, for his part, explained in a statement that he has known the governor for more than a decade. He said he has "no business or financial relationship with him whatsoever," and is unaware of any business relation between Schwarzenegger and Twinlab. Another donor to Schwarzenegger is Muscular Development publisher Steve Blechman. He gave $2,000 to Schwarzenegger in 2003. The latest issue of Blechman's magazine includes numerous before-and-after photos depicting fleshy men and women who were transformed by various supplements. Schwarzenegger himself is a purported expert on supplements. The latest edition of his Encyclopedia of Modern Bodybuilding contains 18 pages of information about supplements. Schwarzenegger entered the bodybuilding world before supplements became a large and complex business. He was more old-school; his early advice on the subject of gaining weight included a 5,000-calorie diet mainly of milk, meat, eggs and cheese. Assembly Speaker Fabian Nu๑ez (D-Los Angeles) said his 16-year-old son once asked Schwarzenegger for advice on what he should take to improve his muscles. "The governor said, 'You shouldn't take anything. If anything, protein. Eat more protein.' I don't think the governor is out there promoting these products on a personal level. I don't think he's out there doing that," Nu๑ez said. Under Schwarzenegger's magazine contract, his income at American Media increased if the company sold more ads. He was guaranteed 1% of advertising sales, but no less than $1 million a year starting in January 2004. The company estimated that the governor's share of sales would amount to $8 million over five years. Schwarzenegger is keeping the money he already has been paid; that amount has not been disclosed. Attorney John Tiedt of Riverside, who has been suing supplement companies including Muscle Tech and Twin Labs, said Muscle & Fitness, Flex, and other similar magazines are key to the supplement business' success. "Arnold carries a lot of weight," Tiedt said. "His magazine was accomplice to selling dangerous products. They could not be sold in the volumes they were sold without the magazine." Karen Getman, former chairwoman of the Fair Political Practices Commission, said the governor's arrangement with the magazines clearly presented a conflict of interest, even though he didn't receive payments directly from supplement companies. "If you have got that kind of incentive built into a contract, where your financial interests are going to be tied to your actions as a public official," Getman said, "we're going to look behind the veil of who is actually paying you and get at where your financial interest lies." 2 4 - 0 7 - 2 0 0 5 Schwarzenegger Cuts Ties With Competition
By DON THOMPSON SACRAMENTO, Calif. -- Gov. Arnold Schwarzenegger has cut business ties with an annual bodybuilding competition that bears his name, taking another step to distance himself from makers of nutritional supplements. The governor was paid a fee each year to attend the bodybuilding event called the Arnold Classic, where dietary supplements are heavily promoted. "That financial relationship is over," spokeswoman Margita Thompson said Saturday. "He wanted the people to know he's focusing on governing and didn't want this to be viewed as a distraction." Thompson said she did not know how much Schwarzenegger was paid. The move comes a week after the former Mr. Universe relinquished his title as executive editor of Muscle & Fitness and Flex magazines, giving up at least $5 million in income. Schwarzenegger gave up the title amid criticism for vetoing a bill regulating food supplements while taking money from magazines that profit from the industry. The issue arose after the magazines' publisher, American Media Inc., filed a securities disclosure form that revealed the lucrative arrangement. Schwarzenegger plans to keep writing columns for both magazines for free but has no plans to return the money he was paid before the controversy erupted earlier this month. In a similar move, the governor plans to keep the previous fees he received from the Arnold Classic but refuse any in the future, Thompson said, although he is likely to continue attending the event in Columbus, Ohio. 2 7 - 0 7 - 2 0 0 5 Couple file complaint against the governor
Schwarzenegger hid diet supplement income, they claim
Carla Marinucci A Petaluma couple whose 24-year-old son committed suicide after using steroids has filed a complaint against Gov. Arnold Schwarzenegger alleging that he made an "intentional decision" to hide income from dietary supplement manufacturers to his annual Arnold Classic bodybuilding expo. The complaint by Denise and Raymond Garibaldi, filed with the state Fair Political Practices Commission, says the income from the dietary supplement business was not properly disclosed and that it constituted a conflict of interest for Schwarzenegger because he vetoed legislation to ban some supplements popular among high school athletes. The couple's attorney, Morgan Smith, said Tuesday the claim is the result of a story in The Chronicle published Saturday that revealed changes in the way the governor discloses income from the Arnold Classic -- an event sponsored by the manufacturers of dietary supplements. The newspaper story noted dietary supplement-makers Muscle Tech, Prolab and SportPharma, listed by name as sources of income on Schwarzenegger's 2003 financial disclosure statements, disappeared from his 2004 forms -- though they continued to pump money and advertising into the Arnold Classic. Aides to the governor said the income was reported differently because the business relationship between the governor and the company that puts on the Arnold Classic had changed and there was no attempt to hide the source of income. Schwarzenegger spokeswoman Margita Thompson, commenting on the Garibaldis' complaint, said Tuesday that the couple's loss "is a grave one and a sad one." But, she added, "the governor is for long-term solutions and public policy solutions to this issue to make sure coaches are trained, that student athletes don't use these drugs, and to make sure we've done all we can to make sure certain substances are banned at the point of sale to those under of 18." Thompson noted that the governor last year signed a bill that requires tougher regulation on the labeling and distribution of steroid hormone precursors. Smith, the Garibaldis' attorney, said the governor "was clearly receiving income directly from these various dietary supplement sources and talking to them directly about things that were in front of the California legislation and involved his veto." "That is a huge concern. ... It makes the Arnold Classic an absolutely direct payment (by dietary supplement manufacturers) to a company in which half of the product went to Arnold." The Garibaldis' son Rob killed himself in 2002 after extended steroid use. Their complaint is the second filed with the Fair Political Practices Commission. The first claim charged that Schwarzenegger's contract with American Media Inc. to serve as editor of two bodybuilding magazines constituted a conflict of interest. Schwarzenegger cut financial ties with the media group and stepped down as editor of Muscle & Fitness and Flex magazines after it was disclosed that he had struck a five-year contract that paid him at least $1 million a year based on the advertising revenue of the magazines, which rely heavily on promotion of dietary supplements. He also cut financial ties with the Arnold Classic. The California Democratic Party last week filed a complaint with the FPPC, accusing Schwarzenegger of receiving unlawful gifts and illegal honoraria because he was also receiving undisclosed millions of dollars in income from American Media Inc. The Fair Political Practices Commission, which will not comment directly on the complaints, has 120 days to investigate the decision. 1 0 - 0 8 - 2 0 0 5 Guest view - Red Bull gives governor new conflict test
Tuesday, August 09, 2005 A new conflict of interest test now looms for Gov. Arnold Schwarzenegger, who flunked his first one when he followed the terms of a now-cancelled contract with two muscle magazines by vetoing a 2004 bill that aimed to restrict use of anabolic steroids by high school athletes. This time Schwarzenegger has vocally backed a measure that could adversely affect another of his former financial benefactors: the Red Bull energy drink. Involved is the so-called "Healthy Schools Now Act," aiming to ban sales of junk food and highly sugared drinks - including Red Bull - from high schools (selling them already is verboten on elementary and middle school campuses). There would be no conflict whatsoever if the two bills in the Healthy Schools package make it through the Legislature intact and Schwarzenegger signs them. He's promised to do that, even devoting one of his weekly radio messages to promoting them. But if he winds up supporting changes to exempt Red Bull and other energy drinks, or if he changes his mind and vetoes the beverage part of the package, there could be conflict charges. For Schwarzenegger has had a long and lucrative relationship with the Austria-produced Red Bull and its founder, Dietrich Mateschitz. The governor's 2003 campaign statement listed Red Bull as a source of more than $10,000 income through Classic Productions, a Schwarzenegger-owned enterprise until late last month, when he cut his ties to it in the wake of revelations of his contract to edit and promote Flex and Muscle & Fitness magazines. Classic Productions still produces the Arnold Classic, the annual Ohio body-building festival Schwarzenegger says he'll continue to preside over. Red Bull and Mateschitz have been major financial backers of Arnold's All-Stars, the governor's longtime after-school program for kids. Schwarzenegger and Mateschitz also serve together on the board of the Mentor Foundation, an international drug prevention program for children. And Schwarzenegger has appeared yearly at Red Bull-owned and -sponsored World Stunt Award television specials. Meanwhile, Red Bull got no mentions in a late July press conference Schwarzenegger staged with Democratic state Sen. Martha Escutia of Montebello, who has tried for years to get junk food banned from schools. "Nutrition and exercise have always been a huge part of my life and as governor I want to do everything I can to motivate and educate our children to eat right and stay fit," Schwarzenegger said in backing Escutia's two anti-junk food bills. "(Her package) will improve school nutrition by removing junk food from our public schools." His staff did not know whether the governor was aware one of the Escutia bills bans high school sales of Red Bull. "He supports the concept of the bills and has worked with Sen. Escutia throughout the process on them this year," said Julie Soderlund, a spokeswoman for Schwarzenegger. "The governor intends to see both bills through the process, but no one can know for sure how they might be amended before final passage." It would be hard to call the anti-soda pop sugared-beverage bill intact if it were altered to allow sales of Red Bull. The bill allows sales of beverages only if they contain less than 42 grams of sugar for every 20 ounces of liquid. Only electrolyte-replacement drinks like Gatorade and Powerade are exempt. Red Bull has more than 20 grams of sugar for every eight ounces," said Escutia aide Nicole Munoz-Murillo. That puts Red Bull more than 20 percent over the act's sugar limit. "These standards were developed long before the governor was elected and there have been no discussions of Red Bull or anything like it." The drink also contains caffeine and the amino acid derivative taurine, which enhances effects of caffeine. Other energy drinks have similar ingredients. After his late July veto of a bill aiming to ease conflict of interest rules for some elected members of local boards, no one can possibly claim the governor is unaware of the importance of potential conflicts. Freedom from conflicts, he said in his veto message, "is critical in order to ensure that public officials perform their duties in an impartial manner, free from bias caused by their own financial interests." If Schwarzenegger allows the junk soda bill to proceed without amendments exempting Red Bull and signs it as it reads today, he will establish that he's willing at least occasionally to act against the interests of his financial backers. It's a test he must pass if he hopes to restore some of the credibility that evaporated when his magazine deal became known. Elias is author of the current book "The Burzynski Breakthrough: The Most promising Cancer Treatment and the Government's Campaign to Squelch It," now available in an updated third edition. His email address is tdelias@aol.com 0 1 - 0 8 - 2 0 0 5 Gov. Told Magazines Some Ads Crossed a Line In a February letter, Schwarzenegger objected to pitches for steroid-like substances. But he didn't end his deal until July.
By Dan Morain and Peter Nicholas SACRAMENTO Gov. Arnold Schwarzenegger kept his job as executive editor of two muscle magazines and continued to collect a portion of ad revenue as payment for five months after telling one of the publications' top executives that he found the ads for steroid-like substances and penis enlargement inappropriate. Schwarzenegger, who agreed to take the editorial post two days before being sworn in as governor, had been employed by Flex and Muscle & Fitness magazines for more than a year before writing the letter. His contract with the company that publishes the magazines promised him at least $5 million more if their ad revenue rose. Much of the money was generated by ads for dietary supplements, some of whose safety is questioned by medical experts. Schwarzenegger no longer takes payments from American Media Inc., the owner of Flex and Muscle & Fitness, although he continues to write columns for both publications. In the letter to Flex editor Peter McGough, the governor said he would sign an editorial denouncing efforts to limit the availability of dietary supplements. He also promised to speak to a gathering of supplement manufacturers at a bodybuilding exposition he sponsors each March in Ohio. But he criticized the publications' ads and urged that the magazines "ensure that we do not leave ourselves open to criticism of misrepresentation by some of the ads we currently allow in Muscle & Fitness and Flex." "These are ads which promote supplements as having almost 'anabolic steroid' properties both in the name of the products and the way their benefits are described," Schwarzenegger said in the letter, dated Feb. 25, 2005. "For us to be successful in winning our dietary supplement case in the court of public opinion, I feel we need to ensure that we adhere to a higher standard than that shown by these ads." Noting that many teenagers read the publications, Schwarzenegger went on to say: "I see ads in both magazines for penis enlargement treatments and various sexual aids. I feel these ads are counterproductive to us." Schwarzenegger canceled his contract with American Media in July, a day after news reports made the terms of the deal public. The company still pays $250,000 a year to the governor's nonprofit Council on Physical Fitness and Sports. Before he quit, Schwarzenegger was paid at least $1.5 million. The Times reviewed the advertising in 19 editions of the two magazines, the most recent dated September 2005. The September editions are the last ones in which Schwarzenegger will be listed as executive editor, although he will continue to provide an advice column for bodybuilders, the magazines' editors say. In Flex, 85% of the ads were for dietary supplements; in Muscle & Fitness, such products were touted in 80% of the ads. Products ranged from energy bars and caffeinated drinks to pills and powders marketed to readers wanting to boost their energy, enlarge their muscles, lose weight and enhance athletic and sexual performance. Dietary supplements include common vitamins, proteins and herbs. Some "natural" products are virtually the same as drugs sold over the counter and by prescription. Some herbs and combinations of them have effects that are little understood. "Even those of us who have worked in this field for many years look at the ingredient list and can't identify about half of them," said Dr. Christine Haller, an expert on supplements at the UC San Francisco medical school. What some of the products advertised in the two magazines contain and what effect they have on people are not clear. State and federal regulators have brought false-advertising suits against some of the manufacturers, alleging that there is no proof their wares work as claimed. McGough said the advertisements are not the responsibility of the magazines' editorial department. "We believe in supplements. We believe in the science of supplements," he said at his office in Woodland Hills. The magazine has tightened the "review policy for ads," though "some of these ads that are booked way in advance are difficult to turn off." "I would like to see less dramatic blurbs," he said. "But it is the nature of advertising. It is the nature of the industry." Schwarzenegger's association with the magazines dates back decades; he first appeared on a cover in 1969. His spokeswoman Margita Thompson said the governor "will stay with the magazines, certainly." But she also said he "doesn't direct the advertising policy of the magazines." "Holding a position on a magazine does not mean you are endorsing that product," she said. She noted that newspapers, including The Times, have carried supplement ads. Other muscle magazines carry the same kinds of ads as Flex and Muscle & Fitness. Those two magazines have by far the largest circulation among muscle publications. Some of the ads they carry offer substances that, at first glance, seem to be steroids or human growth hormone. In Flex, one advertiser proclaims its product goes "beyond pharmaceutical growth hormone." Steroids and growth hormone cannot be sold without prescriptions. Another advertiser, Mexicans Pharmacy, refers readers to its website, which offers "the most powerful product available bar none. If your [sic] looking for a high potency Steroid, don't bother anymore." Its products sell for as much as $249.95 a bottle. Mexicans Pharmacy does not appear to be based south of the border. Its phone number is in a town near Scranton, Pa. A man who identified himself as the owner declined to discuss his business in any detail. Unlike pharmaceutical companies, makers of dietary supplements do not have to prove their products are safe. Rather, if the U.S. Food & Drug Administration wants to regulate a supplement, the agency must document that the product is unsafe a process that can take years. Nonetheless, the FDA, whose authority to regulate dietary supplements is limited, has warned against some supplements. One is yohimbine, extracted from a tree's bark and commonly included in bodybuilding, weight-loss and male sexual performance products. On its website, the FDA says it is investigating reports that yohimbine has "serious adverse effects, including renal [kidney] failure, seizures and death." Yohimbine is an ingredient in Lipo 6, the leading product of a company called Nutrex Research, which is one of the major advertisers in the two magazines. Nutrex Research, a Florida-based company, sells weight-loss and bodybuilding products. Nutrex co-founder Jeff McCarrell said Flex and Muscle & Fitness "are our vehicle for marketing, probably the biggest vehicle." Asked whether yohimbine is hazardous, McCarrell said: "Where are the adverse effects?" and answered himself by saying, "The worst case is people might get chills." Another substance that the FDA has moved against is ephedra, which the agency banned last year after it was linked to heart attacks and several deaths. The ban was overturned by a federal judge in Utah this year. The largest single advertiser in the two magazines is a Canadian supplement maker, MuscleTech Research & Development Inc., which is among the companies fending off suits by people who contend they became ill after taking products containing ephedra. MuscleTech, whose representatives declined to discuss its ads, spends roughly $10 million a year advertising in the magazines and intends to spend $100 million over a 10-year period, according to a MuscleTech executive's deposition in a lawsuit against the company. "There is an interdependence between the magazines and the company," said Riverside lawyer John Tiedt, who has brought more than 50 suits over ephedra-linked illness and death. Federal officials have also taken action on diet pills. Regulators have sued manufacturers over claims for pills that promise weight loss. In July, the Federal Trade Commission filed a false advertising suit against New Jersey dietary supplement marketer Robert Chinery over the product Xenadrine-EFX, which is regularly advertised in Muscle & Fitness. Schwarzenegger's movie "Terminator 3" had a jackknifed big-rig truck in several shots. Prominently spelled out on the side of the truck is the product name Xenadrine-EFX. New Jersey attorney Brian Molloy, who represents Chinery, declined to discuss the case. Despite Schwarzenegger's cancellation of his contract with American Media, the deal continues to generate problems for him. Democrats have accused the Republican governor of a conflict of interest and introduced bills this week aimed at preventing governors from making outside income. State Sen. Jackie Speier (D-Hillsborough) is author of a bill, likely to reach the governor this month, that would ban high school athletes from using supplements already prohibited by college and other amateur sports organizations. The governor vetoed a similar bill last year, saying, "Most dietary supplements are safe." As he promised in the February letter, Schwarzenegger signed an editorial in the June edition of Muscle & Fitness titled "In Defense of Supplements." In it, he said he was "energized to fight any attempt to limit the availability of nutritional supplements." 0 9 - 0 9 - 2 0 0 5 Lawmakers OK supplement bills
STEVE LAWRENCE NUTRITIONAL SUPPLEMENTS - A bill aimed at curbing high school athletes' use of nutritional supplements also got final approval in the Senate. The bill, by Sen. Jackie Speier, D-Hillsborough, prohibits student athletes from using ephedra, synephrine and DHEA - three substances that claim to build muscle and increase energy. Health experts question those claims and say the substances can be dangerous. The bill also requires coaches to take a class on the risks of using anabolic steroids and performance-enhancing supplements. Speier's bill does not ban common, over-the-counter supplements such as protein powders or creatine. A 28-8 vote approved Assembly amendments to the bill, sending it to Schwarzenegger, who vetoed similar legislation last year while on the payroll of a magazine publisher that receives advertising revenue from the supplement industry. The business relationship is now the subject of a state ethics probe. The governor has since ended his financial arrangement with the magazines. 0 8 - 1 0 - 2 0 0 5 Governor Arnie signs bill banning supplement use
AP California Governor Arnold Schwarzenegger has signed a bill banning high school athletes from using some nutritional supplements, a year after vetoing a similar legislation. In his veto message last year, Schwarzenegger said that the previous bill focused too much on dietary supplements rather than steroids, which Schwarzenegger has acknowledged using during his bodybuilding career. The action comes after the governor was criticised for having a multimillion-dollar contract with muscle magazines that derive most of their profits from supplement companies. Critics said the arrangement posed a conflict of interest. The law passed yesterday prohibits high school athletes from taking three nutritional supplements - synephrine, ephedra and DHEA. The list does not include protein and creatine products. It also prohibits supplement manufacturers from sponsoring school events. The governor's signature came after a summer of controversy surrounding his veto of a similar bill last year. Schwarzenegger was accused of having a conflict of interest after a federal securities commission filing in July disclosed that he would earn at least USD 1 million a year for five years serving as a consultant to a publisher of fitness magazines. Much of the advertising in the magazines comes from nutritional supplement companies. Schwarzenegger gave up the contract but continues to write an advice column. The governor made little comment about the steroids bill during a signing ceremony for a separate piece of legislation and did not take questions about it. |
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