Citigroup, AIG Won't Drop Big Sports Sponsorships, Even As They are Bailed Out By Federal Government

It is unconscionable that Citigroup and AIG, as well as a number of other federally-bailed out financial institutions have no plans to cancel the hundreds of millions of dollars in sports team sponsorships, even as they take billions in taxpayer support. According to ABC News,

Despite collecting billions in bailout funds from the U.S. government, AIG and Citibank aren't giving up multi-million dollar sponsorship deals. AIG is paying the British soccer team Manchester United $125 million for the privilege of having its logo appear on Man U's uniforms, while Citibank has a 20-year contract to pay the New York Mets $400 million to name the team's new stadium "Citi Field."

I can understand such frivolities in boom times, when the sponsorships were seen as a way to advertise the firms' "brands" and appeal to potential customers. But in these tough economic times, such spending decisions are pretty hard to justify, especially when taxpayers are bailing these companies out. It is indefensible and unacceptable. Citibank just sealed a multi-billion-dollar emergency "backstop" deal with the U.S. government. The company, 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." How smart is that? Now is the time to flood your congressman or woman and your senators' telephone lines. This is crazy. What is Main Street getting out of the deal?

To read more of the ABC News Report, CLICK HERE....