Citigroup Reinforces That It Will Honor Mets Naming-Rights Deal

Mets Deny Report Suggesting Citi Is Considering Backing Out Of Citi Field Deal

The Mets in a statement said Citigroup this morning "reinforced that they will honor" the company's 20-year, $400M naming-rights deal for the team's new Citi Field (THE DAILY). The WALL STREET JOURNAL's Enrich, Futterman & Paletta in a front-page story this morning cite sources as saying that Citigroup is "exploring the possibility of backing out" of the Mets deal. Citigroup in a statement yesterday said none of the $45B it received through the U.S. Treasury Troubled Asset Relief Program (TARP) "will be used" for the stadium. But "as it revisits the pact, Citigroup is essentially acknowledging that the volatile political climate could make it untenable for the bank to proceed with the deal." Sources said that if Citigroup backs out of its agreement, "it likely wouldn't happen immediately and could involve the bank paying a breakup penalty to the Mets." Mets VP/Media Relations Jay Horwitz said the team is "fully committed to our contract with Citi." A Citigroup spokesperson said the bank "signed a legally binding agreement" with the Mets in '06. Enrich, Futterman & Paletta note if Citigroup backs out of the deal, other financial institutions "may find themselves under pressure to reconsider sports-marketing deals." Bank of America, which also got $45B through the TARP program, signed a deal in '04 for naming-rights to the NFL Panthers' Bank of America Stadium, and the 20-year deal "calls for the bank to pay the Panthers $7.5[M] a year, making it one of the [NFL's] most expensive naming-rights deals" (WALL STREET JOURNAL, 2/3).

WORD ON THE STREET: TheStreet.com’s Douglas Kass said of the Mets-Citigroup situation,“Here’s another example of the New York Mets and the long arm of (Bernie) Madoff because if Citi is actually going to back out of this $400(M) deal, I suspect that (Mets Owners) the Wilpons will be under pressure to at the very least sell a minority interest in the New York Mets because as you know, in their Sterling Equities subsidiary they lost a great deal of money through Madoff, and there is the scuttlebutt around town that they are under pressure to sell a piece of the Mets” (“Squawk Box,” CNBC, 2/3).

BANK ON IT: On Long Island, Wallace Matthews writes the Mets "insist they're not bailing" on their naming-rights deal with the Citigroup. Mets Exec VP/Business Operations Dave Howard: "We're committed to our agreement with Citi, and Citi has indicated it is committed to us. They're our partners and both sides are going to live up to the agreement. ... Superficially, I understand (the public's reaction). But the reality is, the TARP recipients were companies the federal government thought were vital to our economy. To continue doing business, they still need to advertise." Howard added that the Mets "believe Citi is being 'unfairly singled out,' and rattled off a list of 12 financial institutions," including Barclays, "as examples of companies that took the money but have thus far escaped public criticism" (NEWSDAY, 2/3). Changewave Investing Founder Tobin Smith said, “If we’re going to be on our high horse, ... we’re going to kill these people.” U.S. Rep. Dennis Kucinich (D-OH), who along with U.S. Rep. Ted Poe (R-TX) has sent a letter to U.S. Treasury Secretary Timothy Geithner requesting that he dissolve the Mets-Citigroup contract, said this is not about whether or not Citigroup has the "right to market." Kucinich: "They received more bailout money than almost anybody. They have an obligation to the Federal taxpayers not to waste that money” (“America’s Nightly Scoreboard,” Fox Business, 2/2).

WHAT'S IN A NAME? In Philadelphia, Bill Conlin writes the name of the ballpark should be "stretched to Citi-101st Airborne Field." Colin: "If these upholstered bums from Citigroup are taking $400[M] from you and me and handing it over to Mets club owners on Bernard Madoff's speed dial, let's at least have a bailout name with some clout and dignity." Perhaps Mets Owner Fred Wilpon can also "sell the scoreboard rights to Bicycle Playing Cards." Conlin: "What better theme for an international banking colossus now playing with house money provided by you and me?" (PHILADELPHIA DAILY NEWS, 2/3).