What was the Whitewater scandal? Well Arkansas attorney general Bill Clinton and his wife partnered with James and Susan McDougal to purchase 220 acres of land that would become the Whitewater Development Corporation back in 1979. This investment failed and caused the Clinton’s to lose $40,000. Why was this a scandal? Well the guy who made the loan (David Hale) said he was pressured into it by the Clintons. David Hale said this while being investigated and then prosecuted for a list of felony fraud charges. This was all brought to the forefront by New York Times writer Jeff Gerth.

So right around the same time another Little Rock Arkansas man was starting a new venture after a few failed ones (some from borrowing money from teamsters). Jerry Jones and Mike McCoy started a company called Arkoma. Arkoma was an oil business and through his connections he secured the rights to drill for oil and gas. Jones’ friend was Arkla’s CEO at the time Sheffield Nelson. Nelson sold against his own geologists and other folks wishes lease rights to Jones and company for $15,000,000 and the right to buy 75% of the the oil/gas Jerry and company find for market rates set by Jerry, and put Jerry Jones on the board of directors. So Jerry Jones’ lucky streak of hitting oil was due to the fact he was hitting oil on land most people knew had oil on it.

Jerry didn’t stop there because of the contracts he had with Arkla where he could set the prices he sold oil/gas to them he could then branch out and buy oil/gas from Arkla’s competitors Stephens Production Company for below market rates and sell it to Arkla at above market rates. Needless to say this deal was so bad for Arkla that Nelson soon left. A few years later under new CEO Mack McLarty authorized the purchase of those same leases and few others back from Jones for $174,800,000. Mack McLarty would later on leave his position as CEO to become White House Chief of Staff for his BFF Bill Clinton.

Not bad and not the only deal Jerry Jones made a profit from due to his friendship with Sheffield Nelson. Both he and Nelson put money into a land deal in Canada with the help with James McDougal who now had his own bank. The deal tanked yet Nelson and Jones were bought out of their combined stake of $500,000 for $725,000.

<blockquote> ok so there are some connections but where is this going? </blockquote>

Now Sheffield Nelson was a lifelong democrat and was in a bit of a professional feud with Witt and Jack Stephens, yup the same Stephens of the Stephens Production Company. Back in 1978 the Stephens’ nephew Ray Thorton was running for a Senate seat but had his hopes derailed by a very well timed hit piece written by one Jeff Gerth. The Stephens were also the major contributors to every political opponent of Bill Clinton’s.

Now lets fast forward to 1990. Sheffield has been waiting for Bill Clinton (now Governor) to leave office, but he won’t leave. Sheffield Nelson switches to a Republican and starts running against Clinton. In response Clinton’s Public Service Commission start making inquiries about the whole Arkoma/Arkla deals. And Nelson is humiliated and defeated.

TL;DR

Jerry Jones gets a royally sweet deal from his friend Sheffield Nelson, Nelsons shitty deal is undone By Clinton’s friend McClarty. Jones uses money to buy Cowboys. Nelson tries to run against Clinton. Clinton investigates Sheffield’s deal with Jones, Sheffield has a friend writer investigate Clinton, and boom Whitewater scandal is born. Clinton sits in Jones’ box seats.

STRANGE BUT TRUE