There are multiple reports swirling around the internet regarding the Citigroup-Mets marketing deal. This morning ESPN was still reporting that Citi was looking into the possibility of getting out of the deal. On the other hand, reputable sources said yesterday that Citi executives have assured the Mets they need not worry and the deal is intact.
Why such a big concern?
As you know, this is no humdrum everyday contract, it is a $400 million marketing agreement that includes the naming rights to the new Mets stadium.
Citigroup is now dependent on the funding of the federal government for its survival as an institution. For this reason many people do not believe Citigroup should be spending $400 million in the realm of sports marketing while they recently accept over $350 billion in taxpayer support.
Citi originally signed the 20-year marketing contract back in 2006. If Citigroup breaks its agreement with the Mets, it likely would not happen overnight. It would likely involve the bank paying a penalty to the Mets.
It is sickening the way these loan driven institutions have squandered not only their money but out money as well. Citigroup should be able to break this agreement with little penalty. If they can more than a quarter of a trillion dollar bailout from the government than I think there should be a way out of this marketing agreement.
Maybe the federal government should intervene and put an end to this deal. Heck, why don’t they just pay the fees that backing out of the agreement will create?
Citi Says Mets Deal Is Still On [WSJ.com]
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