Bailed Out Banks Still Spending Millions On Sports Sponsorships, Considering New Ones

Tax paying sports fans beware... it appears that you may be helping sponsor major teams whether you like them or not! A couple reports out cite how bailed out banks are still spending millions on sponsorships. Moreover, Bank of America is considering a new sponsorship with the Yankees. Read below.

ABC: Bank Of America doled out around $10 million for super bowl festivities...

Despite a near collapse that required $45 billion in federal taxpayer bailout funds, Bank of America sponsored a five day carnival-like affair just outside the Super Bowl stadium this past week as President Obama decried wasteful spending on Wall St.

The event - known as the NFL Experience - was 850,000 square feet of sports games and interactive entertainment attractions for football fans and was blanketed in Bank of America logos and marketing calls to sign up for football-themed banking products.

HuffPost's Ryan Grim: Congressmen want Citibank to nix its Mets sponsorship deal...

In 2006, Citigroup entered into a $400 million contract with the New York Mets for naming rights to the team's stadium, now called Citi Field. That was then. Housing prices were climbing, no-doc loans were flying out the door and Citigroup was encouraging us all to "Live Richly."

This is now. Citigroup has taken $45 billion in bailout funds -- plus another several hundred billion in guarantees -- to stay afloat as it contemplates breaking into smaller pieces. With that cash in mind, Ohio Rep. Dennis Kucinich, one of the House's most liberal Democrats, and Texas Rep. Ted Poe, one of the most conservative Republicans, see a problem with the $400 million contract. The duo wrote newly-confirmed Treasury Secretary Tim Geithner Thursday urging him to nix the deal.

Charlotte Observer: Will Bank Of America continue to negotiate a Yankees sponsorship deal?...

Charlotte-based Bank of America Corp. continues to negotiate a possible New York Yankees sponsorship amid increased scrutiny of spending by banks that have received government assistance.

Published reports in September said Bank of America was close to a deal to become the largest sponsor in the new Yankee Stadium, although the agreement wouldn't include naming rights. Bank of America already has a sponsorship with the baseball team that includes Yankees-themed credit cards and checking accounts.

Comments

[streak of rin tin tin]

New age Obama Mom's instead of boms.

[KeepMeLearning]

I think I understand what you posted... :-)

How about this? I was at a conference on Saturday in LA for women entrepreneurs...350 women (yes, 350!) who have started their own businesses were in attendance... This was no girlie, foo-foo, soccer mom event...these women are serious about their work (myself included), and the idea that individuals like us are key to improving the economy. Many of these women had grown their businesses and hired employees within the past year; one of the keynote speakers--who mentors other entrepreneurs--recently sold her business for $56 million.

The momentum in the room was off the hook, in spite of the economy. The ladies are in the house!

[SmellyOne]

As I was feeling angry at the Gov't for giving all that money to those banks, I thought about how Congress had to vote for the money, and they allowed it to happen.

Then I remembered that I was on H u f f P o , and no one wants to blame a D e mo c r a t i c C o n g r ess for the seemingly stupid idea of giving out the money.

Just a d u m b move.

[GrouchoMarxist]

Whatever you say, Mr. Independent.

[SmellyOne]

You doubt my independence? Does it help that I h a t e most everything about the Republican party? Like what they did to Clinton, like how d u m b GWB was/is, like how they sold out to the F u n di e s? I h a t e thier stance on h o m o s e xuality and f l a g bu r nin g. I h a t e their sense of entitlement.

How's that? Why should I have to prove myself to you just because I am critical or ask questions that are hard for ya'll to answer? Why are you so threatened by someone who thinks for themself?

[WLA]

Duhmbya sure pushed it hard. Want to see the youtube?

[SmellyOne]

I wouldn't brag about being in league with our last POTUS. He was a d o l t and a scallywag!!

[culturaldiplomat]

Well the absurdity is these cases is in the dollar amounts and how the funds were used. Sponsorships can and should accomplish a few positive things.

1. Return on investment. The sponsorship "should" attract new business and create new relationships with customers that will help build the base and generate new cash flow that will exceed the sponsorship value.

2. Allow "start ups" and philanthropic organizations to align themselves with powerful message campaigns that can boost investment for what really matters. This benefits both the sponsor and the sponsored.

3. Throwing millions of dollars at organizations who already benefit from licensing, branding and sales equates to allot of waste for both the sponsor and the sponsored.

4. Throwing money away on a "big party" is not the best idea. Sustained support of quality events in cultural, civic arenas helps spur growth and attract new customers and keep ones loyal to the brand all at a lower cost.

[frantaylor]

Banks are banks. They do not manufacture anything.

[amdezurik]

except fees...

[MsRy]

As a potential customer of these companies, their marketing at this time and in this way has only worked to drive me away from them forever.

[humuhumunukunukuapuaa]

Introduction to GOP Fiscal Policy:

Spending a trillion of US Tax dollars building roads, bridges, hospitals, schools, and to provide clean water, sewers, health care, education and security for the people of Iraq is "Sound economic policy"

To do the same for the people of the United States is "Socialism"

[EllisWyatt]

Our governement has actually done that over the history of our country. You forget?

[Emerald1943]

Yes, the Marshall Plan and all that! However, the USA was not on the brink of complete financial collapse. We need to take care of our own first so that we can take care of others later.

[GrouchoMarxist]

Bingo!

[KQuarksSuperKollider]

Exactly.

Now they want to take the "Buy American" clause out of the stimulus so even if we spend tax payer money on the stimulus package the government can use foreign contractors and by foreign goods.

Rethuglicans hate America.

[rmmk]

While the bonus pay outs were beyond irresponsible, I don't think that congress has the right to dictate marketing budgets for any of these companies. And that is where sponsorship dollars come from, marketing budgets that keep people employed.

While the bailouts went into greedy pockets, sponsorship dollars (at least some) go back into the economy and employ people. Think of the people who got paid to work at the event outside the super bowl for the week, the shirt maker who got the order for the t-shirts, the local rental store that go to provide the tables and tents, the factory that got the order to produce the the give-a-ways, the people at the NFL and their related marketing agencies that may not have been laid off due to the income that came in from the sponsorship agreements.

Money needs to keep circulating if we want the economy to bounce back. Fear of lending and spending is at least a part of the current problem with stimulating our sagging economy. Should we sped a bit less? Yes. But, we need to make smart decisions on spending to help keep the economy going. And setting a precedent that would allow the government to dictate marketing budgets would cross a major line.

[frantaylor]

We will not solve our economic problems by throwing Super Bowl parties.

[MsRy]

This spending in no way promoted any long-term strategic growth for the US economy. T-shirt guys selling t-shirts will not save us.

This was simply a large chunk of changes p iss ed down the toilet so they could party.

Short-term loans to small businesses anyone? No, but hey! A few folks in Tampa got some really cool foam #1 fingers.

[IronPalm]

JP Morgan agrees to finance summer long rock festival in upstate New York....

"The Hemp Helps" festival will be host to hundreds of today's top acts and activist Hollywood luminaries...

Unions demand summer off to attend...

Democrats swoon...

[ThunderclapNewman]

Poor, pathetic Vogie.

Unable to post anything except Iies.

[GrouchoMarxist]

Shouldn't you be organizing a boycott?

[MsRy]

drop acid much?

[EllisWyatt]

John F. Kennedy was on the Harvard swim team and JV football team at Harvard. Poppy Bush was first baseman on the Yale Varsity Baseball Team.

Hope that helps you out Episcopagan for getting it wrong.

[Episcopagan]

I was not wrong about FDR, Truman, Carter, Clinton, Hoover, Wilson, Coolidge, Harding, and all the others, shortbus.

Poor shortbus. Always a jocksniffer, never a jock.

[EllisWyatt]

You incorrectly stated that Poppy Bush and JFK did not play intercollegiate sports, my good little friend.

[frantaylor]

I wonder what this has to do with professional sports and advertising.

[Oldbuck]

This makes more sense than giving it in some damn bonus to a CEO that broke the Bank and made us bail it out to start with.

[Emerald1943]

The question is not whether they should spend money on expensive sports sponsorships or high dollar bonuses....IT'S WHETHER THEY SHOULD SPEND TAX DOLLARS TO DO IT WHEN THEIR COMPANIES ARE GOING DOWN! (Caps intentional)

In my small business, bonus is only when I MAKE money! There is no bailout for me! And I don't think I will be able to have a stadium named after me either.

I cannot believe the arrogance!!!!!!!!

[humuhumunukunukuapuaa]

Introduction to GOP Fiscal Policy:

When CEO's live lavishly at tax payers expense, it is called "Marketing".

When poor people get taxpayer's help to pay for health care, it is called "socialism".

[FatherKindly]

Or "entitlements". If any member of the current crowd of crooks in Congress says he is going after "entitlements," what he really means is that he wants to shut down Social Security and Medicare.

[Merckx]

On the surface, these types of sports marketing expenditures can seem extravagant, but if you dig deeper, the real question is are they worth the investment? Banks like many businesses need to advertise.
You can only sell free checking so many times until people tune you out.
If a large corporation spends 5% of their annual budget on advertising to keep the brand growing and
say that is $100,000,000. If they take 10% of their advertising budget and invest in sports or special event marketing, that would be $10,000,000 per year. It could be sponsoring a NASCAR team, a Super Bowl Party, a bicycle racing team or event, a marathon, concerts, etc. The question is does the ROI equal or exceed buying an additional $10,000,000 in radio, print, web, billboard, etc.

With event marketing you can target specific demographics and you create a positive connection with the event that far exceeds more billboards or radio ads. A well rounded marketing/branding package ties in the product or company with the event and the rest of their marketing campaign to increase the synergy and hopefully create a greater positive impact then if they had not associated with an event at all.

Of course, typically the CEO that approves these types of expenditures tend to be a fan of said sport.
If you're dropping $5 million on a Golf event, it makes sense that your probably a golf nut.
If the investments are worth while, I'm not against them.

[HarryParatestis]

that's right America - pay your taxes so that these banks can spend your tax dollars as they see fit - fascism never felt so good

[IronPalm]

Wells Fargo to sponsor Abortion Awareness Month for Head Start program...

Democrats swoon.....

[GrouchoMarxist]

Shouldn't you be organizing a boycott?

[NatteringNabob]

Link please.

[ThunderclapNewman]

Provide a link, Vogie.

Or we'll know you Iied.
Again.

It seems all you do is Iie.

[humuhumunukunukuapuaa]

Isn't there a Harry Potter movie you need to boycott?

[SmellyOne]

Wells Fargo is not a bank that was in trouble. They are a very solvent bank. They took the money because the gov't didn't want to single out the troubled banks, so they made everyone take the money.

I bet Bank of America and Wells Fargo and others who "spend foolishly" while doing post-bailout business will be the first to pay the money back.

[EllisWyatt]

Eisenhower, Kennedy, Nixon, Ford, Reagan, and Bush 41 all played intercollegiate athletics, with varying degrees of success.

Supreme Court Justice Byron Whizzer White was an All American football player. at Colorado

Gerald Ford was all Big Ten as a center at Michigan

There are many other prominent politicians lilke Bill Bradley, Rhodes Scholar, All American basketball player and All pro basketball player, etc. The list goes on.

[ThunderclapNewman]

Off-topic and incredibly boring.

[Episcopagan]

Truman didn't, FDR didn't, your Lord W was a cheerleader in prep school, though.

[KQuarksSuperKollider]

Actually none of our top 10 presidents played sports.

[KQuarksSuperKollider]

By your logic then Al Gore who was captain of his football team would have been a much better president than cheerleader Bush.

[Byrne]

As a matter of interest, AIG is getting out of its sponsorship deal with Manchester United in the UK. Why can't banks in the US do the same?

[ThunderclapNewman]

AIG is also under the sole ownership of the US government.