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VIDEOField of Schemes: Will Citibank Renege on Mets' Contract?
By
Scott Reeves Feb 03, 2009 12:45 pm
Company says no TARP funds for marketing program.
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Now, with the start of spring training about 2 weeks away, the team may be looking for a new sponsor for its new ballpark.
Citigroup (C) may back out of a $400 million marketing deal with the team following concerns about how banks are using federal bailout bucks, The Wall Street Journal reports.
Citigroup officials say they haven't made a final decision about ending the 20-year agreement, which includes naming the Mets' new 45,000-seat ballpark patterned on Brooklyn's Ebbets Field.
Citigroup says no Troubled Asset Relief Program (TARP) funds will be used as part of the marketing program. But that hasn't stopped Democratic Representative Dennis Kucinich of Ohio, and Republian Representative Ted Poe of Texas, from sending a letter to US Treasury Secretary Timothy Geithner (of tax-problem fame) asking him to urge Citigorup to dissolve its deal with the Mets.
"Citigroup is now dependent on the support of the federal government for its survival as an institution," the letter said, according to The Wall Street Journal. "As such we do not believe Citigroup ought to spend $400 million to name a stadium at the same time that they accept over $350 billion in taxpayer support and guarantees."
It's hard to imagine the Mets taking down Citigroup's logo from the stadium entrance and scoreboard this season. If it happens now or in the future, there's almost certain to be a cancellation penalty.
The Mets say they've signed a "legally binding agreement" with Citigroup, but apparently the team has forgotten that contracts are made to be broken - especially when Congress is miffed.
Does Congress respect no limits in its desire to micro-manage everything?
Citigroup didn't acquire about 200 million customer accounts in 100 countries or so without knowing how to market its services. The company apparently sees the Mets' stadium and TV audiences as prospective customers because it's got money in its pockets to spend on baseball, beer and all that Americana stuff.
Other major companies see professional sports as a good way to reach potential customers. The list of naming deals is endless, but for starters, there's the Staples Center in Los Angeles, AT&T Park in San Francisco, PNC Park in Pittsburgh and Comerica Park in Detroit. And don't forget all those company logos on the cars of NASCAR competitors.
Let's hope that saving the banking industry from Armageddon doesn't give Congress license to micro-manage it into the ground. In any case, baseball is supposed to be an escape, a Never-Never Land away from minor irritants like members of Congress who think they know more about everything than the folks who actually turn the wheels in American industry.
Today's forecast in New York calls for snow. Play ball, already.
Lacking that, let's just call the Mets new ballpark The Field of Schemes.
No positions in stocks mentioned.
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