WSJ: Citi Explores Breaking Mets Deal

[Morrissey]

http://online.wsj.com/article/SB123363029719042381.html?mod=djemalertNEWS

Citi Explores Breaking Mets Deal

Bank That Got Bailout Cash Revisits $400 Million Pact to Put Name on Stadium

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.

[ZachEY]

They should have to.

No way taxpayer bailout money go towards putting a sign on a baseball stadium.

[Lil Bit Special]

They should have to.

No way taxpayer bailout money go towards putting a sign on a baseball stadium.

So should the Yankees reject Bank of America's sponsorship deal with the Yankees?

Should Comerica get out of their deal with the Tigers?

If its going to be one, it has to be all.

[Scott Dierking]

Another entity should not tell a company how and where their marketing dollars should go.

To Citi, this represents a marketing program that they expect to help them drive business.

If you start doing this, you then should tell them what content their ads should have.

The government elected to give them the money, it is the resposnisbilty of teh entity to spend it smartly.

if they fail, no more help.

[AdropOFvenom]

It's called advertising, a company needs to do so in order to be successful. I have no problem with Citi remaining the Mets ballpark's main sponsor. If they decide to break it off, that's their decision, but it seems like they're being pressured into doing so, which isn't right.

[Bob]

There's no way Citi should be pissing away $400 million in taxpayer money by putting their name on a ballpark.

[JohnnyHector]

There's no way Citi should be pissing away $400 million in taxpayer money by putting their name on a ballpark.

Agreed completely. They can instead piss away millions in taxpayer money on corporate jets and interior decorating.

[Bob]

Agreed completely. They can instead piss away millions in taxpayer money on corporate jets and interior decorating.

These bastards really know how to make people hate them, don't they?

[JohnnyHector]

These bastards really know how to make people hate them, don't they?

They are the JETSFAN5180 of financial corporations.

[ZachEY]

So should the Yankees reject Bank of America's sponsorship deal with the Yankees?

Should Comerica get out of their deal with the Tigers?

If its going to be one, it has to be all.

Yankees shouldn't reject anything, nor should the Mets.

I'm simply saying that Citi is given a gift to get itself out of trouble, and a sign on a baseball stadium is not really a fair way to spend it.

[faba]

The Mets should do the right thing and try to work out a deal to get another partner for less money- it would be the right thing to do.

[JohnnyHector]

The Mets should do the right thing and try to work out a deal to get another partner for less money- it would be the right thing to do.

I'm not getting a raise this year, so Citi should lower my mortgage rate to account for inflation - it would be the right thing to do.

[AdropOFvenom]

According to a report on CNBC, the Mets say Citigroup has contacted them and will continue to honor their current marketing and naming rights agreement, contrary to the Wall Street Journal report from below.

(Metsblog.com)

Also, various things pointed out in the WBJ article

- TARP money is "not being used to fund the stadium deal."

- The deal is 20 million annually over 20 years, not 400 million up front.

- Citigroup is legally bound to this contract and would be subject to a penalty should they break it. (I'm speculating here, but the penalty is probably larger then the 20 million they would have to pay the Mets for next season anyways).

- Forcing Citi out of his deal would harm their ability to make deals with 3rd parties in the future

- Where exactly is the outrage for similar deals? Citi Field isn't Citi groups only naming rights deal, Bank of America (The largest member of the bailout) has naming rights for the Panthers stadium and is "close" to being the main sponsors in New Yankee Stadium

- They quote a Bank of America Spokesman who notes that such deals are PROFITABLE for the company.

[JohnnyHector]

TARP money is "not being used to fund the stadium deal."

OK, so Citi isn't taking money from the Treasury and directly giving it to the Mets.

That's like me saying that I didn't gamble away my son's birthday checks that I deposited in my checking account, because I used money that I had withdrawn from the ATM.

[AdropOFvenom]

OK, so Citi isn't taking money from the Treasury and directly giving it to the Mets.

That's like me saying that I didn't gamble away my son's birthday checks that I deposited in my checking account, because I used money that I had withdrawn from the ATM.

Hence why I used the quotation marks, lol

[AdropOFvenom]

The Mets should do the right thing and try to work out a deal to get another partner for less money- it would be the right thing to do.

The issue there is I'm sure the Mets are just as legally bound to the contract as Citigroup is, and would likely be subject to the same penalties should they break the contract.

[Bugg]

Another entity should not tell a company how and where their marketing dollars should go.

To Citi, this represents a marketing program that they expect to help them drive business.

If you start doing this, you then should tell them what content their ads should have.

The government elected to give them the money, it is the resposnisbilty of teh entity to spend it smartly.

if they fail, no more help.

They ALREADY failed.

They shouldn't have received the money in the first place. It's national disgrace. This whole socialist idiocy by both Bush and now Obama would make the founding fathers rightly put our whole government in both adminsitrations in front of firing squads.

The Coupons, between this debacle and investing with Madoff, are the trashiest rich people in NYC. Long as we're going to piss away taxpayers' trillions, sign Manny and get it over with already. It's not like the Coupons are paying for it.

[Jbro22]

Yankees shouldn't reject anything, nor should the Mets.

I'm simply saying that Citi is given a gift to get itself out of trouble, and a sign on a baseball stadium is not really a fair way to spend it.

I agree with what you saying, but its much more then a sign on a stadium. Its name is printed on every ticket, and every time espn or any network/paper/videogame covers anything from there. The money companies spend on stadium names is worth it. But for a bank to do it, right now in this economy. Yeah maybe its a little much. Especially if they're gonna have to turn around and hand over the space for another company in 2-3 years.

[ZachEY]

I agree with what you saying, but its much more then a sign on a stadium. Its name is printed on every ticket, and every time espn or any network/paper/videogame covers anything from there. The money companies spend on stadium names is worth it. But for a bank to do it, right now in this economy. Yeah maybe its a little much. Especially if they're gonna have to turn around and hand over the space for another company in 2-3 years.

Thanks, I wasn't familiar with the concept of advertising before this response.

Spend 20 million dollars a year in ad money when things flourish and you want growth.

That same GIFT money can be used elsewhere when you need to dig your stock out of the gutter and get out from underneath a ton of bad mortgages.

[Jbro22]

Thanks, I wasn't familiar with the concept of advertising before this response.

Spend 20 million dollars a year in ad money when things flourish and you want growth.

That same GIFT money can be used elsewhere when you need to dig your stock out of the gutter and get out from underneath a ton of bad mortgages.

Haha, I knew that would be your response. But yeah, maybe I took your sarcasm too far.

[Zeebers]

They ALREADY failed.

They shouldn't have received the money in the first place. It's national disgrace. This whole socialist idiocy by both Bush and now Obama would make the founding fathers rightly put our whole government in both adminsitrations in front of firing squads.

The Coupons, between this debacle and investing with Madoff, are the trashiest rich people in NYC. Long as we're going to piss away taxpayers' trillions, sign Manny and get it over with already. It's not like the Coupons are paying for it.

Bank of America, also a major recipient of the bailout money is set to become the biggest sponsor for the new Yankee stadium although it is not for the naming rights. Some reports state that the sponsorship package will exceed that of the citigroup and Mets ballpark deal. Is this a disgrace? Or is it OK because it is the Yankees?

[Jbro22]

Bank of America, also a major recipient of the bailout money is set to become the biggest sponsor for the new Yankee stadium although it is not for the naming rights. Some reports state that the sponsorship package will exceed that of the citigroup and Mets ballpark deal. Is this a disgrace? Or is it OK because it is the Yankees?

Need more details.

[Zeebers]

Need more details.

I am not sure the deal is done yet, but it is close to being completed. I personally don't like that that my tax money is going to any team, but at the same time I do see sponsorship as a marketing tool. Here are a couple articles on the BofA and Yankee deal.

http://www.bizofbaseball.com/index.php?option=com_content&view=article&id=2456:bofa-close-to-major-sponsorship-deal-at-new-yankee-stadium&catid=41:facility-news&Itemid=56

http://www.bizjournals.com/charlotte/stories/2008/09/08/daily10.html

[Jbro22]

I am not sure the deal is done yet, but it is close to being completed. I personally don't like that that my tax money is going to any team, but at the same time I do see sponsorship as a marketing tool. Here are a couple articles on the BofA and Yankee deal.

http://www.bizofbaseball.com/index.php?option=com_content&view=article&id=2456:bofa-close-to-major-sponsorship-deal-at-new-yankee-stadium&catid=41:facility-news&Itemid=56

http://www.bizjournals.com/charlotte/stories/2008/09/08/daily10.html

I was kinda joking, but this money these banks receive. Where is it supposed to go?

[Bugg]

Bank of America, also a major recipient of the bailout money is set to become the biggest sponsor for the new Yankee stadium although it is not for the naming rights. Some reports state that the sponsorship package will exceed that of the citigroup and Mets ballpark deal. Is this a disgrace? Or is it OK because it is the Yankees?

If BOA is getting TARP funds, yes.

[Zeebers]

If BOA is getting TARP funds, yes.

I don't see how you can know that Citigroup is receiving TARP money and not realize the same thing about BofA. That is like the Yankees honest mistake of omitting Torre in the closing ceremonies. I don't have any issues with anyone taking offense to how different financial institutions are spending their bailout money. They need to be monitored closely. The oversight committees didn't do their job and this can't happen again. The problem is you continually attack the Wilpons and the Mets when this is not a Mets issue. The Mets and Citigroup entered into a business agreement, even before the financial mess we are in today. What do you expect the Mets to do? If Citigroup declares they want out of the agreement, then it becomes a Mets issue, and they have to decide what they need to do then. Until then, this have nothing to do with the Wilpon and the Mets.

You sound like a broken record, you continually bring up the Wilpons and the Madoff scam. The Wilpons lost a ton of money, I don't feel bad for them, and I can't care less. They have more money then I can ever imagine. If they had slashed the payroll, then it should become an issue to Met fans. To my knowledge, the Mets payroll has remained relatively the same as compared to last year, maybe a little more. The Mets payroll is the 2nd or 3rd highest in the league. Anyone that tells you the Mets are cheap have no idea what they're talking about. The Mets operate in the same town as the Yankees, but the Mets revenue stream is not in the same stratoshere as the Yankees.

One more thing, I don't know the Wilpons personally, but I'm curious to know why the Wilpons are such A-holes in your book?

[Bugg]

I don't see how you can know that Citigroup is receiving TARP money and not realize the same thing about BofA. That is like the Yankees honest mistake of omitting Torre in the closing ceremonies. I don't have any issues with anyone taking offense to how different financial institutions are spending their bailout money. They need to be monitored closely. The oversight committees didn't do their job and this can't happen again. The problem is you continually attack the Wilpons and the Mets when this is not a Mets issue. The Mets and Citigroup entered into a business agreement, even before the financial mess we are in today. What do you expect the Mets to do? If Citigroup declares they want out of the agreement, then it becomes a Mets issue, and they have to decide what they need to do then. Until then, this have nothing to do with the Wilpon and the Mets.

You sound like a broken record, you continually bring up the Wilpons and the Madoff scam. The Wilpons lost a ton of money, I don't feel bad for them, and I can't care less. They have more money then I can ever imagine. If they had slashed the payroll, then it should become an issue to Met fans. To my knowledge, the Mets payroll has remained relatively the same as compared to last year, maybe a little more. The Mets payroll is the 2nd or 3rd highest in the league. Anyone that tells you the Mets are cheap have no idea what they're talking about. The Mets operate in the same town as the Yankees, but the Mets revenue stream is not in the same stratoshere as the Yankees.

One more thing, I don't know the Wilpons personally, but I'm curious to know why the Wilpons are such A-holes in your book?

If any of these companies took the government money, then they shouldn't be spending money on frivilous advertising and naming rights. If they had run their businesses smartly, they wouldn't have taken TARP. Since they took TARP, I have no sympathy, and that's true if it's BOA and the Yanks or Citibank and the MEts.

The Wilpons are cheap. They have run their businesses stupidly, Madoff being the latest example. They could've been classy and named the stadium for Jackie Robinson(may they will do so now, which would be the proper thing to do) but got greedy isntead. Omar Minaya has been allowed to do some remarkably stupid things, and even before him they allowed Duquette to make that moronic Kazmir trade with Tampa.

Remember this, though; I dislike the Mets, but I hate the Sawx.

And as a Yankee fan I'm tired of all the BS strutting around their players and fans do(David Wright being the one exception; seems like a really good guy). You haven't won anything that matters in 20+ years, so STFU. On the one occasion you could've stolen the Yanks' thunder, you shat the bed in 2000.

[ZachEY]

I was kinda joking, but this money these banks receive. Where is it supposed to go?

Towards providing loans and mortgages.

Actually stimulating the economy.

[ECURB]

Sure lets force them to change their marketing plans that actually help the company and make them money... **** why not just have the Govt buy the bank completely and run it into the ground themselves...

Some of you folks fail to realize regardless of the health of your business the WORST thing you can do is cut advertising/marketing especially if its a type that works... stadium deals work... their name gets TONS of exposure...

[ECURB]

Towards providing loans and mortgages.

Actually stimulating the economy.

Not only providing new loans but bailing out "bad" loans and giving them new better loans...

They are doing it... but I dont think the banks or the Govt realized how hard it would be to undertake on a large scale...

[Bugg]

Sure lets force them to change their marketing plans that actually help the company and make them money... **** why not just have the Govt buy the bank completely and run it into the ground themselves... NO DOUBT TRUE!

Some of you folks fail to realize regardless of the health of your business the WORST thing you can do is cut advertising/marketing especially if its a type that works... stadium deals work... their name gets TONS of exposure...

Which is why the government shouldn't be giving them dime 1 in the first place.

TARP is fiscal insanity.

Let these companies go out of business. Citibank actually holds my mortgage, which gets paid every month.if they fail some other well-run company will buy those assets. My problem is less with the Mets than with the idea of TARP.

Also, had the government not mandated that Citibank and other banks give unqualified people mortgages, we might not be in this mess, and thatw as done by both Bushes and Clinton, so it's not a political point, just sheer federal stupidity(though if we could nail Barney Frank and Chris Dodd to fencepsots for encouraging this when any whistlesblower said boo as some in alla dminsitrations tried to, sign me up for one spot on hammer time, wearing serious rubber gloves in Mr. Frank's case).

[JohnnyHector]

They could've been classy and named the stadium for Jackie Robinson(may they will do so now, which would be the proper thing to do) but got greedy isntead.

Yeah, because he had such a distinguished career as a member of the Mets. Other than Fred Wilpon's hard-on for everything Brooklyn Dodgers, what the **** does Jackie Robinson have to do with the Mets?

[Thai Jet]

The Mets should do the right thing and try to work out a deal to get another partner for less money- it would be the right thing to do.

It'll be interesting to see how this plays out.

[Thai Jet]

Yeah, because he had such a distinguished career as a member of the Mets. Other than Fred Wilpon's hard-on for everything Brooklyn Dodgers, what the **** does Jackie Robinson have to do with the Mets?

As Darkhelmet would say...... "ABSOLUTELY NOTHING"

[Zeebers]

If any of these companies took the government money, then they shouldn't be spending money on frivilous advertising and naming rights. If they had run their businesses smartly, they wouldn't have taken TARP. Since they took TARP, I have no sympathy, and that's true if it's BOA and the Yanks or Citibank and the MEts.

The Wilpons are cheap. They have run their businesses stupidly, Madoff being the latest example. They could've been classy and named the stadium for Jackie Robinson(may they will do so now, which would be the proper thing to do) but got greedy isntead. Omar Minaya has been allowed to do some remarkably stupid things, and even before him they allowed Duquette to make that moronic Kazmir trade with Tampa.

Remember this, though; I dislike the Mets, but I hate the Sawx.

And as a Yankee fan I'm tired of all the BS strutting around their players and fans do(David Wright being the one exception; seems like a really good guy). You haven't won anything that matters in 20+ years, so STFU. On the one occasion you could've stolen the Yanks' thunder, you shat the bed in 2000.

I have no issue with you disliking the Mets hating the Sawx, whatever. That's your prerogative. It's just silly for you to rip the Mets, when all the Mets and Citigroup did was enter into a business agreement. If citibank, decides to back out and the Mets go after them for legal damages and what not, go ahead and have a field day with that. The Mets are a business, why would they just name the Park after Jackie Robinson. It doesn't make any sense. Why you hate the Wilpons is beyond me, I assume you know them, but all you really bring up is the Madoff scheme. Again, thousands of smart business people lost money with that. It is what it is. After a while it gets tiring. Who cares. Just because they lost money with the Ponzi scheme they become *******s? I am sure you can go on and on about all the bad decisions Mets management have made. Every freaking organization has made bad decisions. Look at the Steinbrenners. Look at the Kei Igawa's the Pavano's giving Roger Clemens 28 million prorated. Look at George in the 80's early 90's. How much talent did he give up for over the hill veterans. I would argue he is the best owner in sports. All I am saying is you're not making any sense in your diatribe against the Mets. I will look forward to your future posts ripping the Yankees and BoA.