« Scoop about arena costs poses questions about government approval, assurances; why did Gehry not stay "on budget"? |
Main
| ATLANTIC YARDS RATNERVILLE CONSTRUCTION UPDATE »
February 3, 2009
Citi Explores Breaking Mets Deal
Bank That Got Bailout Cash Revisits $400 Million Pact to Put Name on Stadium
The Wall Street Journal
by David Enrich, Matthew Futterman and Damian Paletta
You say Cit-ee, I say Cit-eye, let's call the whole thing off.
Citigroup Inc., eager to quell the controversy over how lenders are using government bailout money, is exploring the possibility of backing out of a nearly $400 million marketing deal with the New York Mets, say people familiar with the matter.
Officials at Citigroup have made no final decision about whether to try to void the 20-year agreement, which includes naming the Mets' new baseball stadium after the bank, say these people.
In a statement Monday, Citigroup said that "no TARP capital will be used" for the stadium -- referring to government funds from the Troubled Asset Relief Program. But as it revisits the pact, Citigroup is essentially acknowledging that the volatile political climate could make it untenable for the bank to proceed with the deal.
How exactly do they separate the TARP money from their other money? Marked bills?
If Citigroup parts ways with the Mets, other financial institutions may find themselves under pressure to reconsider sports-marketing deals. Bank of America Corp., which got $45 billion in government capital, signed a deal in 2004 for naming rights for the Carolina Panthers football stadium in Charlotte, N.C.
Bank of America's 20-year deal calls for the bank to pay the Panthers $7.5 million a year, making it one of the National Football League's most expensive naming-rights deals. The Houston Texans receive $10 million a year from Reliant Energy Inc.
Bank of America has been in talks with the New York Yankees about a major sponsorship deal for the new Yankee Stadium, though the company's name wouldn't be on the building. That deal appeared near complete in the fall, but neither side has discussed the matter since then.
NoLandGrab: The Mets have a ballpark, but may end up without a naming-rights deal. Bruce Ratner has a naming-rights deal (for now), but may not have an arena.
Posted by eric at February 3, 2009 8:24 PM