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Citi May Bail on $400M Marketing Deal With Mets
The call to spend taxpayer money more wisely may overshadow agreement
By Clay Dillow
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Posted Feb 3, 09 7:28 AM CST
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(Newser)
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Citigroup, trying to duck controversy over its use of taxpayer bailout dollars, is considering reneging on a $400 million marketing deal with the New York Mets, the Wall Street Journal reports. The 20-year partnership—which includes naming the Mets new stadium Citi Field—may be scratched because Citi accepted $45 billion in TARP funds from the Treasury, as well as federal guarantees on $301 billion in loans.
The debate inside Citi is whether it's more important to distance the firm from taxpayer wrath, or avoid setting a bad precedent by wiggling out of a contract signed in 2006. "If we cave for political reasons, it will have enormous implications for our ability to contract with third parties," one exec tells the Journal.