Citi May Bail on $400M Marketing Deal With Mets

The call to spend taxpayer money more wisely may overshadow agreement

By Clay Dillow, Newser Staff

Posted Feb 3, 2009 7:28 AM CST

(Newser) – 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.

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This artist's rendering provided by the New York Mets shows a corner view of the Mets' new stadium, scheduled to open in April 2009, with it's newly unveiled Citi Field logo. (AP Photo/New York Mets)

Construction continues in the Jackie Robinson Rotunda at Citi Field, the new stadium being built for the New York Mets baseball club. Citi may pull out of the naming-rights deal for the stadium. (AP Photo/Frank Franklin II)

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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.
- A letter from Reps. Dennis Kucinich and Ted Poe to Treasury Secretary Geithner

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Citi May Bail on $400M Marketing Deal With Mets