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December 4, 2008
What’s in a Name? A Mets-Citi Bond
The New York Times
by Richard Sandomir
Last week, the government came to Citi’s rescue with a stabilization plan that includes backing $306 billion in mostly real estate assets, agreeing to absorb potential losses on that portfolio, as well as buying $20 billion in Citi preferred stock.
Banks are well represented in the universe of naming rights — from Bank of America and Wachovia to Chase, Citizens Bank and TD Banknorth — but those deals did not go into effect during a dire economy or cost nearly as much as the record sum that Citi is paying (which was matched by Barclays in its deal for the Nets’ arena in Brooklyn).
Without falling into bankruptcy, Citi could not seek to abrogate its deal. It was only in federal bankruptcy court that the Houston Astros got the name of the felonious energy company Enron off its stadium, but it cost them a $2.1 million buyout fee.
The Mets are standing by Citi, and Citi is standing by the Mets.
“It’s a binding agreement,” [Citi Vice Chairman Lewis B.] Kaden said in a brief interview, “and a good deal” that still fits Citi’s local and global marketing and philanthropic goals.
NoLandGrab: "Philanthropic goals?" The only philanthropy we see at play here are the generous gifts bestowed upon Citigroup and the Mets by the taxpayers.
Posted by eric at December 4, 2008 11:32 AM