Author Topic: AIG, Citi won't drop expensive sports sponsorships...  (Read 2590 times)

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Online Babblelot

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AIG, Citi won't drop expensive sports sponsorships...
« on: November 25, 2008, 08:45:06 AM »
...oh really?

AIG, Citibank and a number of other federally bailed-out financial institutions have no plans to cancel hundreds of millions of dollars in sports team sponsorships, even as they take billions in taxpayer support, ABC News has found.



In boom times, the sponsorships were seen as a way to advertise the firms' "brands" and appeal to potential customers. Even today, at least one bank told ABC News that a naming deal was increasing its revenue. But critics, including a member of Congress, say the decision to continue them now is hard to defend.

Struggling Citibank just sealed a multi-billion-dollar emergency "backstop" deal with the U.S. government. The financial behemoth, 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."

"This type of spending is indefensible and unacceptable to Citigroup's new partner and largest investor: the American taxpayer," said Rep. Elijah Cummings, D-Md., in a statement Monday.

Citi isn't alone: Imploding insurance giant AIG is paying the British soccer team Manchester United $125 million for the privilege of having its logo appear on Man U's uniforms. That, despite the fact the firm is standing largely thanks to a $150 billion lifeline from the U.S. Treasury.

"A friend of mine joked they should put 'US Treasury' on the front of their uniforms," said Steve Ellis of Taxpayers for Common Sense, a Washington, D.C.-based nonpartisan watchdog group which is outraged by the expenditures.

In boom times it was fine for AIG, Citi and others to spend millions on naming rights and other promotional arrangements with professional sports teams, critics say – even if they're a waste of money, as some marketing experts believe. But when the economy teeters on the brink of collapse – and firms are using American taxpayers' money to keep lending or just keep their doors open – those critics are making a stink about the expensive deals.

"Up until now they were businesses who could invest or waste their money as they see fit," said Taxpayers for Common Sense's Ellis. "But now we're the shareholders. And frittering their money away with naming rights and ties to sports teams isn't a really good investment of taxpayers' money -- particularly when credit markets are collapsed."
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Offline dmastous

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #1 on: November 25, 2008, 09:50:09 AM »
The music hasn't stopped. The middle class are just financing their party now. :ranting:

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Offline Chris1987

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #2 on: November 25, 2008, 11:44:43 AM »
United are just too big to drop even for a crisis company  :)~
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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #3 on: November 25, 2008, 02:24:31 PM »
United are just too big to drop even for a crisis company  :)~

We'll let the American taxpayers have the last word  ;-()
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Offline dmastous

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #4 on: November 25, 2008, 03:07:28 PM »
United are just too big to drop even for a crisis company  :)~

We'll let the American taxpayers have the last word  ;-()

How? At least if that's the case than they haven't said the right word. Because these guys haven't heard it.

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Offline Tennis4you

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #5 on: November 25, 2008, 05:15:38 PM »
For every hundred million they pay out to athletes they can pay save 1,333 jobs of their own for a YEAR!  That assumes they fork out an average of $75,000.00 per year per employee.

They better hurry up and lay off those 50,000 so they can pay those athletes.  Heaven forbid those athletes and their families go hungry.  I hear they only fork out a lowly million per slam these days...
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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #6 on: November 26, 2008, 01:32:31 AM »
United are just too big to drop even for a crisis company  :)~

We'll let the American taxpayers have the last word  ;-()

How? At least if that's the case than they haven't said the right word. Because these guys haven't heard it.

Have you been following the Congressional hearings? Now Elijah Cummings is on the case. For better or worse, American outrage can reverberates. Believe me, the original bailout proposal got struck down for one reason alone: hundreds of thousands of Americans demanded that their congressional reps kill the proposal. AIG has followed up their original sin with one scandal after another. They are going to emerge as the American public's whipping boy. I was telling Chris, their reputation is going to be so bloodied, they likely walk away from the AIG brand.
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Offline Chris1987

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #7 on: November 26, 2008, 01:44:41 AM »
United are just too big to drop even for a crisis company  :)~

We'll let the American taxpayers have the last word  ;-()

How? At least if that's the case than they haven't said the right word. Because these guys haven't heard it.

Have you been following the Congressional hearings? Now Elijah Cummings is on the case. For better or worse, American outrage can reverberates. Believe me, the original bailout proposal got struck down for one reason alone: hundreds of thousands of Americans demanded that their congressional reps kill the proposal. AIG has followed up their original sin with one scandal after another. They are going to emerge as the American public's whipping boy. I was telling Chris, their reputation is going to be so bloodied, they likely walk away from the AIG brand.

From over here we hear about the bad position AIG are in but we don't really understand what you the American people feel about them so to hear that view and more than likely quite popular opinion right now when so much of taxpayers money is going into the company is pretty revealing to say the least. A company that is basically only surviving because of the Government is one that you indeed would look to stay away from. I would go along with you in that when this current deal expires we ull the plug on them and look for another big sponsorship deal- they'll never be any shortages of them when it comes to United. If I put myself in the American taxpayers position, I'd be exactly the same as you guys- I'd be very unhappy and quite mad to see so much of my hard earned money going to a crisis company.
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Offline Jamesdster

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #8 on: November 28, 2008, 09:37:39 AM »
As big a sports junkie I am......I hope like hell pro sports takes a hit.  I know this a long and complicated topic and the fault remains with all (owners, players, fans), but I hope they all bleed to death.  When you can't afford to take a family of 4 to a game there is something wrong.  I took my son to Blue Jackets (NHL game) this year and paid $10 to park, $70 for tickets (not close to the best seats in the house), around $25 for a few snacks (2 dogs, cokes, and nachos).  I'll stick to high school sports and free college tennis thank you very much.
I was at this casino minding my own business, and this guy came up to me and said, "You're gonna have to move, you're blocking a fire exit." As though if there was a fire, I wasn't gonna run. If you're flammible and have legs, you are never blocking a fire exit.  - Mitch Hedberg

Online Babblelot

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #9 on: November 28, 2008, 10:49:54 AM »
As big a sports junkie I am......I hope like hell pro sports takes a hit.  I know this a long and complicated topic and the fault remains with all (owners, players, fans), but I hope they all bleed to death.  When you can't afford to take a family of 4 to a game there is something wrong.  I took my son to Blue Jackets (NHL game) this year and paid $10 to park, $70 for tickets (not close to the best seats in the house), around $25 for a few snacks (2 dogs, cokes, and nachos).  I'll stick to high school sports and free college tennis thank you very much.

Seriously, I often think about what it's like for parents.  :(  It's one thing to get gouged when a game is a complete sell out, but when the stadium is just 65-75% full and you still can't afford to take your family...  :no-no-no:
« Last Edit: November 28, 2008, 10:50:48 AM by Babblelot »
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Offline dmastous

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #10 on: November 28, 2008, 02:39:48 PM »
As big a sports junkie I am......I hope like hell pro sports takes a hit.  I know this a long and complicated topic and the fault remains with all (owners, players, fans), but I hope they all bleed to death.  When you can't afford to take a family of 4 to a game there is something wrong.  I took my son to Blue Jackets (NHL game) this year and paid $10 to park, $70 for tickets (not close to the best seats in the house), around $25 for a few snacks (2 dogs, cokes, and nachos).  I'll stick to high school sports and free college tennis thank you very much.

 ://

When you have athletes like Will Clark (1st baseman for the Giants) justifying his turning down a $4 million contract offer to return to the Giants to take a $5 million offer from Texas because "I have to feed my family" you realize just how far removed these guys are from reality (this was in 1993). They live in a different world, totally unconnected with the fans that follow them so vigorously. God bless them for being able to get what they can out of their chosen career. But to so callously act as if they are facing poverty if they don't get that extra million dollars is ridiculous.
I think the athletes and owners can live with a pay cut, but that's just me.

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Offline Jamesdster

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #11 on: November 28, 2008, 04:42:36 PM »
As big a sports junkie I am......I hope like hell pro sports takes a hit.  I know this a long and complicated topic and the fault remains with all (owners, players, fans), but I hope they all bleed to death.  When you can't afford to take a family of 4 to a game there is something wrong.  I took my son to Blue Jackets (NHL game) this year and paid $10 to park, $70 for tickets (not close to the best seats in the house), around $25 for a few snacks (2 dogs, cokes, and nachos).  I'll stick to high school sports and free college tennis thank you very much.

 ://

When you have athletes like Will Clark (1st baseman for the Giants) justifying his turning down a $4 million contract offer to return to the Giants to take a $5 million offer from Texas because "I have to feed my family" you realize just how far removed these guys are from reality (this was in 1993). They live in a different world, totally unconnected with the fans that follow them so vigorously. God bless them for being able to get what they can out of their chosen career. But to so callously act as if they are facing poverty if they don't get that extra million dollars is ridiculous.
I think the athletes and owners can live with a pay cut, but that's just me.

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I was at this casino minding my own business, and this guy came up to me and said, "You're gonna have to move, you're blocking a fire exit." As though if there was a fire, I wasn't gonna run. If you're flammible and have legs, you are never blocking a fire exit.  - Mitch Hedberg

Offline dmastous

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #12 on: December 01, 2008, 10:36:35 PM »
Happy Thanksgiving.... a bit belated.

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Offline retro

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #13 on: December 02, 2008, 01:45:43 PM »
As big a sports junkie I am......I hope like hell pro sports takes a hit.  I know this a long and complicated topic and the fault remains with all (owners, players, fans), but I hope they all bleed to death.  When you can't afford to take a family of 4 to a game there is something wrong.  I took my son to Blue Jackets (NHL game) this year and paid $10 to park, $70 for tickets (not close to the best seats in the house), around $25 for a few snacks (2 dogs, cokes, and nachos).  I'll stick to high school sports and free college tennis thank you very much.

 ://

When you have athletes like Will Clark (1st baseman for the Giants) justifying his turning down a $4 million contract offer to return to the Giants to take a $5 million offer from Texas because "I have to feed my family" you realize just how far removed these guys are from reality (this was in 1993). They live in a different world, totally unconnected with the fans that follow them so vigorously. God bless them for being able to get what they can out of their chosen career. But to so callously act as if they are facing poverty if they don't get that extra million dollars is ridiculous.
I think the athletes and owners can live with a pay cut, but that's just me.
A wise old sage player named Patrick Ewing once said, "When you make more, you spend more". So him not being able to feed his family on 4 mil might be true. [end sarcasm]

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Offline Jamesdster

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #14 on: December 02, 2008, 01:58:51 PM »
If I am not mistaken, Latrell Sprewell once turned down some ridiculous multi-million dollar contract because he also was worried about feeding his family.  I guess you can work up quite a hunger from strangling coaches.
I was at this casino minding my own business, and this guy came up to me and said, "You're gonna have to move, you're blocking a fire exit." As though if there was a fire, I wasn't gonna run. If you're flammible and have legs, you are never blocking a fire exit.  - Mitch Hedberg

Offline retro

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #15 on: December 02, 2008, 10:30:10 PM »
If I am not mistaken, Latrell Sprewell once turned down some ridiculous multi-million dollar contract because he also was worried about feeding his family.  I guess you can work up quite a hunger from strangling coaches.
The even sadder part was that he was still a top 20 player and he didn't receive a contract offer from another team. He turned down 21 mil over 3 years and got nothing in the end :rofl_2:
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Offline dmastous

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #16 on: December 03, 2008, 12:16:37 AM »
If I am not mistaken, Latrell Sprewell once turned down some ridiculous multi-million dollar contract because he also was worried about feeding his family.  I guess you can work up quite a hunger from strangling coaches.
The even sadder part was that he was still a top 20 player and he didn't receive a contract offer from another team. He turned down 21 mil over 3 years and got nothing in the end :rofl_2:

Sad? I'm hoping that was sarcasm. I was a big fan of Sprewell when he came up in Golden State. He was a breath of fresh air for a couple years. Then he changed, or allowed his true nature to come out. I don't know which. But I don't feel bad for players who turn down multi millions of dollars  and find there isn't another million dollar contract out there.
Even players who don't have the rep that a guy like Spree. Like Will Clark, who was always a fan favorite in San Francisco. Or Jody Reed, who had one very good season in LA as a second baseman, and turned down around 8 million on the advice of his agent. He ended up signing a minor league contract with the Brewers (around $200k which is still a pretty good amount of cash) just before the season began.
A little reality check is a good thing.

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Offline jeffrx

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #17 on: December 03, 2008, 03:01:44 PM »
I am also a huge sports fan.  I used to go to 20 Yankees games per year at about 20-30 bucks a pop.  Now, the same seats will be hundreds of dollars in the new stadium.  The Yankees are becoming too expensive and people like me, who love the game but don't want to sit in the worst seat in the house, would rather not go to the game than spend $600 for a family of four.

Basketball...Knicks games are hundreds of dollars for an average seat (and they totally suck anyway).  No I go to college games and can't afford to see the Knicks.

Tennis - a grounds pass at the Open is about $50.  Not too bad.  As long as it stays relatively close to that, I'm all in still.  The Bronx Challenger event is free....I can also see local college tennis for basically free (Princeton, Rutgers women, etc).  Tennis is still a pretty good deal (even though that BNP event at Madison Square Garden is a complete ripoff at hundreds of dollars for an average, not great, ticket).

Football - forget about it!  TV all the way.  If you want live football, go see college, because the Giants or Jets are always sold out and you will pay extreme prices when the teams are good.  When the teams are bad, the season tix holders don't want to go and they offer the tix at discount prices (but who wants to sit in zero degree weather to watch a crappy team?).

The bottom line is that I am a huge fan and people like me built these sports in to what they are today.  I (and all of us regular fans) are being priced out.  Sporting events will eventually be for corporate types only and there will be no real fans at the game.  What will this lead to?  I have no idea, but it can't be good.
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Offline retro

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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #18 on: December 03, 2008, 04:21:49 PM »
The best seat in the house has always been at home in front of the TV.
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Re: AIG, Citi won't drop expensive sports sponsorships...
« Reply #19 on: December 03, 2008, 04:54:43 PM »
I found this interesting.

My cousin works at an upscale steak house in Boston and told me the Celtic players come in often. I asked her how well they tip. She says it depends, some players tip very well, others tip like you and me. But the wives leave bad tips.  ..-)

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