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July 20, 2008
Citigroup Puts Its Money Where Its Name Will Be
NY Times
RICHARD SANDOMIR
What will happen to naming rights deals as the economy suffers? The NY Times looks at Citi Field, which Citibank promises to follow through with, even if it doesn't make much sense for business. Barclays also sticks to its promises, while the Times sticks to its claims that an arena would be open in 2010:
Another bank, Barclays, followed Citigroup by a few months with its 20-year, $400 million naming-rights deal for the Nets’ arena near downtown Brooklyn.Barclays, based in Britain, lacked Citigroup’s substantial presence in the United States and viewed the arena — whenever the Barclays Center’s long-delayed construction starts — as part of an aggressive domestic brand-building plan. But like Citigroup, it has had problems in the credit market, with $6.5 billion in write-downs on its banking scorecard. To shore up its capital position, Barclays recently sold $8.9 billion in new stock.
The bank, which sponsors the Premier League and a PGA Tour event in the FedEx Cup playoffs, is still linked with the Nets, who are seeking a 2010 arena opening if construction starts soon. On Friday, Brett Yormark, the president of Nets Sports and Entertainment, called Barclays a “stable and dynamic institution that is thriving in a very challenging marketplace.”
Brandon Ashcraft, a bank spokesman, said, “Barclays is fully committed to its relationship with the Nets.”
Posted by amy at July 20, 2008 4:00 PM