"Bailed-out companies AIG, Citibank have no plans to cancel expensive sports sponsorships."
ABC reports that “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”:
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.” […]
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.
Rep. Elijah Cummings (D-MD) said that this “type of spending is indefensible and unacceptable to Citigroup’s new partner and largest investor: the American taxpayer.” Steve Ellis of Taxpayers for Common Sense joked that Manchester United should put “U.S. Treasury” on the front of their uniforms instead.