California’s billionaires have fundamentally reshaped the political landscape in San Francisco, and it seems the same playbook is being used across the Bay.
We’re currently witnessing one of the most contentious and expensive election cycles in Oakland history. Over the past 10 months, campaign finance records indicate that hundreds of thousands of dollars have been funneled into efforts to recall Mayor Sheng Thao, alongside significant funding for city council races and an attempt to unseat local District Attorney Pamela Price.
Much of this financial backing stems from a small group of affluent individuals in real estate, finance, and tech—many of whom have a history of financing political campaigns against progressives in nearby San Francisco. Reflecting the strategies seen in San Francisco, countless donations are managed through a complex network of non-profits and political action committees, creating a “gray-money” framework that obscures the true sources of these funds.
The motivations behind these contributions come from residents’ genuine frustrations with issues like increased violence and property crime during the pandemic, a looming budget crisis exacerbated by the growth of remote work, the departure of beloved sports teams, and a recent FBI raid on the mayor’s home tied to a corruption investigation.
Currently, the deck seems stacked against Mayor Thao. According to campaign finance documents, she and her supporters have managed to raise around $117,000 to combat the recall, while her opponents have amassed a staggering $600,000 in 2024 alone. The initial steps of gathering enough signatures for the recall petition have already cost the pro-recall committee $350,000.
Among the notable donors is Ron Conway, a prominent investor in San Francisco politics, who has contributed at least $15,000 to the recall committee. However, the bulk of the funding—approximately 80%—comes from one individual, Philip Dreyfuss, a partner at Farallon Capital hedge fund and resident of the affluent city of Piedmont. Dreyfuss’ substantial role was first highlighted by local news source Oaklandside.
Dreyfuss has a history of political giving, notably contributing to the successful 2022 recall against San Francisco District Attorney Chesa Boudin, and he has donated over $600,000 to this year’s recall campaign against Price. Despite multiple inquiries from The Guardian, Dreyfuss has yet to respond regarding his contributions. During a recent press conference, Mayor Thao suggested that Dreyfuss’ support for the recall might be linked to Farallon Capital’s coal interests, especially considering ongoing legal disputes around a proposed coal export terminal at the Oakland port.
Concerns regarding the concentrated financial influence in the Oakland recall effort have been echoed by local political figures, including U.S. Congresswoman Barbara Lee. She has labeled the recall initiative as “undemocratic, costly, and chaotic,” emphasizing that voters, not a handful of billionaires, should uphold the democratic process.
While Dreyfuss stands out as the largest donor, he is not the only significant contributor. Jesse Pollak, a cryptocurrency investor and Coinbase executive, founded Abundant Oakland, a group that supports “moderate” candidates in Oakland races. This organization is closely linked to similar advocacy groups in San Francisco and Santa Monica.
Abundant Oakland is backed by Vibrant Oakland, which has received funds from various sources, including the Oakland Police Officers Association and Pollak himself. This year, they’ve directed $100,000 toward Warren Logan’s campaign, which aims to unseat progressive city council member Carroll Fife.
Pollak has also invested at least $125,000 in Empower Oakland, an organization established last year by Thao’s primary opponent from the 2022 mayoral race, City Councilman Loren Taylor. Empower Oakland is actively supporting the recalls of both Thao and Price, endorsing candidates who are critical of Thao, including Brenda Harbin-Forte and former police chief LeRonne Armstrong.
Pollak explained his motivations for creating such organizations by citing his observations of ineffective city management during his time living in West Oakland. “When you look at the outcomes that have been driven in the city over the last three to four years, we’re not heading in the right direction,” he stated.
Yet, the impact of these wealthy campaign contributions is evident. Dreyfuss’s funding has raised red flags, leading to investigations by the city’s public ethics commission. Reports suggest that Dreyfuss was the sole contributor to a political action committee that raised nearly $600,000 and subsequently donated to the recall effort.
The intertwining of these campaign organizations is under scrutiny as investigators seek clarity on their financial dealings and intent to conceal donor sources.
As George Bisharat, a former public defender and law professor, noted, the current political climate in Oakland is shifting significantly, although the true impact won’t be known until the recall results are in. “There are real changes happening now in Oakland, and we won’t know how significant they are until we see the outcome of the recall,” he said. “But I think Sheng Thao is in a lot of trouble.”
