New York City’s business community is in disarray over whom to back in the upcoming mayoral race, with many urging either Andrew Cuomo or Mayor Eric Adams to step aside so the other can mount a stronger challenge against surprise Democratic primary winner Zohran Mamdani.
Following Cuomo’s announcement that he would stay in the race as an independent after losing to Mamdani, New York-based CEOs have yet to coalesce behind either the former governor or incumbent Adams in their bid to defeat Mamdani, a Democratic socialist who won the primary in June.
Several business leaders who would only speak under the condition of anonymity said they would support Cuomo, while others were backing Adams, a former police captain who was elected mayor as a Democrat in 2021 but this year decided to run as an independent, as less sure of the former governor’s chances. Many leaders are taking a wait-and-see approach — though others believe that could be a bad move, keeping another candidate from gaining momentum.
Mamdani won the June 24 primary with 56% of the vote, bolstered by young voters drawn to his social media presence and messaging focused on solving the city’s affordability crisis. Polling suggests he would prevail over a fractured field of Cuomo, Adams and Republican candidate Curtis Sliwa, but some polls suggest Cuomo would win a head-to-head matchup against Mamdani in heavily Democratic New York.
Fears Of Capital Flight
Business owners are concerned that Mamdani’s proposals, which include rent freezes, free city buses and city-owned grocery stores, would add to residents’ tax burden and cause an exodus of capital.
Mamdani says his plans, which also include free childcare, would be paid for by raising corporate taxes and imposing an additional 2% income tax on New Yorkers earning more than $1 million a year.
“I can only vote for one candidate in November, and that decision won’t be made until closer to Election Day,” said Jared Epstein, president of real-estate owner and developer Aurora Capital Associates, in an email. “Until then, like nearly every one of the 20,000 contacts in my phone, my position is simple: ABZ – ‘Anyone But Zohran.'”
Mamdani has raised about $820,000 since the primary through July 21, according to the city’s campaign finance board. Few prominent business leaders have publicly come out in support of Mamdani, who has received endorsements from unions that previously backed Cuomo. In recent days, Mamdani met with executives in a meeting organised by the nonprofit Partnership for New York City.
“He did a pretty good job of making the case that he was open to conversations, discussion and learning, and that he wanted to build a coalition that would represent all New Yorkers,” said Kathy Wylde, president and chief executive officer of the group.
Cuomo has said he would drop out by September if he isn’t the clear favourite and has urged others to do the same, though by state law his name would remain on the ballot. He has raised just $64,000 since June 10.
Adams Gains Elite Backing
Adams has raised roughly $1.5 million since June 10. Maria and Kenneth Fishel, who own a luxury real estate company, Renaissance Properties, hosted a fundraiser for Adams in Long Island’s Hamptons over the 4th of July weekend. Adams has also received support on social media from hedge-fund managers Bill Ackman and Daniel Loeb. He has been endorsed by 13 police unions.
Hedge fund manager Whitney Tilson, who ran in this year’s Democratic mayoral primary, receiving just 0.8% of the vote, said in an email that once the election is one month away, “it will hopefully be clear who’s better positioned to beat Mamdani and ONLY THEN should the other guy drop.”
Neither Cuomo nor Mamdani’s campaigns responded to a request for comment.
Todd Shapiro, spokesperson for Adams, said Adams made New York stronger after the pandemic and will continue to deliver results for the business community in New York.
Sliwa, who is polling behind both Mamdani and Cuomo, said he is not planning on dropping out; Sliwa, as the Republican candidate in the 2021 mayoral general election, won 27.8% of the vote.
(With inputs from Reuters)
