AIG, Citibank and a number of other federally bailed-out financial institutions have no plans to cancel hundreds of millions of dollars in sports team sponsorships, even as they take billions in taxpayer support. Struggling Citibank just sealed a multi-billion-dollar emergency "backstop" deal with the U.S. government. The financial behemoth, suffering with billions in bad mortgage-related assets on its books, recently shed 53,000 workers and saw its stock price lose over half its value. Yet it's in a 20-year contract to pay the New York Mets $400 million to name the team's new stadium "Citi Field."
Citi isn't alone: Imploding insurance giant AIG is paying the British soccer team Manchester United $125 million for the privilege of having its logo appear on Man U's uniforms. That, despite the fact the firm is standing largely thanks to a $150 billion lifeline from the U.S. Treasury.
Bank of America (TARP take: $25 billion) is reportedly poised to ink a $20 million-a-year sponsorship with the New York Yankees – a team that is hardly hurting for cash. They are already in a reported 20-year, $140 million deal with the Carolina Panthers football team to call the team's arena "Bank of America Stadium."
PNC Bank ($7.7 billion in TARP funds pledged) is locked in a 20-year, $30 million deal to keep the home of the Pittsburgh Pirates named "PNC Park." A spokesman there said the bank did not use TARP funds to make payments on the deal.
J.P. Morgan Chase ($25 billion from TARP) has a 30-year, $66 million contract for the Arizona Diamondbacks to call their stadium "Chase Field." "That was an agreement that was signed 11 years ago," by a bank that was bought by Chase, said bank spokesman Tom Kelley. "Tell me what 2008 has to do with 1997? That's a contractual obligation."
J.P. Morgan Chase ($25 billion from TARP) has a 30-year, $66 million contract for the Arizona Diamondbacks to call their stadium "Chase Field." "That was an agreement that was signed 11 years ago," by a bank that was bought by Chase, said bank spokesman Tom Kelley. "Tell me what 2008 has to do with 1997? That's a contractual obligation."
Comerica ($2.3 billion in TARP funds pledged) has an identical deal with the Detroit Tigers to refer to their home field as "Comerica Park." Both expire in 2028.
Capital One – famous for their tagline, "What's in your wallet?" and a recipient of $2.3 billion in TARP money – are the proud and paying sponsor of the Capital One Bowl, formerly known as the Florida Citrus Bowl.
Our tax money at work, folks.
1 comment:
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The first package was about what we spent on the war. The second package is the war again. And rumor has it that there will be yet another package about the same. Hmmm... not even in office yet and Obama will have had two wars on the home front... blue dog Democrats will cost the party almost as much to hold sway.
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