As Author, Obama Earns Big Money and a New Deal

By JEFF ZELENY

Published: March 19, 2009

http://www.nytimes.com/2009/03/20/us/politics/20disclose.html?_r=2&ref=books

WASHINGTON — The power of President Obama’s pen is $8,605,429, and counting.

Four years ago, Mr. Obama became a millionaire through the popularity of his autobiography, which was quickly followed by a second book, “The Audacity of Hope.” It is a gift that keeps on giving: $3.89 in royalties for Mr. Obama for each hardcover, $1.03 per paperback and $4.50 for an audiobook.

In a week when Mr. Obama scolded business executives for creating a culture of runaway salaries and bonuses, a disclosure form filed Tuesday showed that he signed a new $500,000 book agreement five days before taking office in January.

Aides said Mr. Obama would receive $250,000 of that for an adaptation of his autobiography, “Dreams From My Father,” for young readers. The other $250,000 will go to the publisher in the deal, which was first reported Thursday by The Washington Times.

The publishing agreement was not announced by the White House but was noted in a routine financial disclosure form in the Senate Office of Public Records. It is the latest indicator of how Mr. Obama has profited from his books as the reach of his celebrity has grown.

When Mr. Obama wrote “Dreams From My Father,” which came out in 1995, he did not sell enough books to pay back the advance of $30,817. But when it was reprinted after his speech to the Democratic National Convention in 2004, sales flourished, which led to another book deal worth $1.9 million.

For that, Mr. Obama agreed to write another nonfiction book and a children’s book. He wrote in his disclosure report that he intended to delay both books until he left office.

Robert B. Barnett, a Washington lawyer who represents Mr. Obama on his publishing work, said Thursday that the $500,000 agreement was not for a new book but rather for a license so the president’s autobiography could be condensed into a book for middle-school students. Mr. Obama has already signed about 50 similar licensing arrangements, Mr. Barnett said, typically when the book is translated into another language.

A review of Mr. Obama’s disclosure reports since he arrived in Washington four years ago as a senator from Illinois shows a rapid ascent in his wealth, thanks to his work as a best-selling author. In 2005, he reported royalties of $1.23 million and in 2006, $572,490. In 2007, after his second book was published, royalties increased to $4.1 million. They were $2.46 million in 2008.

He will continue to receive book royalties while president.

As he talks about his proposal to raise taxes on the wealthiest Americans, Mr. Obama counts himself in that category. That was not the case before his book sales soared.

“Before the book, we had gone through some pretty tough financial times,” Mr. Obama said in a 2005 interview. “Part of it was getting us out of the hole that we’ve been in. None of that at all is to cry poor. It’s just that we still worry about paying the bills.”

Will Mr. Obama keep the $250,000 from the latest book agreement or give it to charity? The president has not yet decided, a White House spokesman said Thursday.