Obama contributor received state grant

Recently, Obama expressed regret over a property deal with Illinois power broker Tony Rezko after Obama was elected to the U.S. Senate in 2004. In an interview this spring with the Chicago Sun-Times, Obama said his regret was not just because the real estate and restaurant entrepreneur was under criminal scrutiny, but because he was "a contributor and someone doing business before the state."

Obama spokesman Robert Gibbs, who provided The Times with details of Obama's compensation from EKI, said Obama did nothing wrong acting on behalf of Killerspin. He said the state senator simply wrote a letter backing a worthy project developed by a constituent.

Killerspin's owner, Blackwell, was a political supporter and friend as well. Both men lived on Chicago's South Side. Blackwell, a savvy and successful entrepreneur, was one of the first donors to Obama's early campaigns, including the state senator's failed bid for a congressional seat in 2000. In the presidential race he is credited on Obama's website with committing to raise $100,000 to $200,000 for Obama's campaign.

When Blackwell sought backing for his table tennis tournament in 2002, other politicians, including U.S. Sen. Richard J. Durbin (D-Ill.) and Chicago Mayor Richard M. Daley, offered support for the event. But Obama was the only one who provided a letter that became part of the initial application for state funds, state records show. In addition, he wrote a state Senate proclamation heralding the first tournament and an official letter that welcomed “table tennis friends” to the 2004 contest and thanked spectators for helping to "make Chicago the table tennis capital of this nation."

Initially, the idea of table tennis receiving funds from a state tourism program -- designed to encourage overnight visits to Illinois -- was met with skepticism by one Republican state official. But the funding was granted at the $20,000 level that first year, grew to $200,000 in 2003 and totaled $100,000 in 2004.

High-dollar tourism grants from the state are often reserved for events like the Breeders' Cup, an internationally known horse race that brought 50,000 to the Chicago area in 2002. But Blackwell and his allies promised good attendance, hotel bookings and international attention. Today, Illinois Tourism Director Jan Kosner lauds the state's decision to support the table tennis tourneys and dismisses the role that letters from politicians play in the grant-making process.