Naming Rights to Stadium Agreed To Long Before Financial Crisis

Washington, D.C.--Congressman Eliot Engel initiated efforts to defend the New York Mets’ agreement with Citigroup which has recently been under attack by other Members of Congress and some media outlets. Rep. Engel wrote a letter to U.S. Treasury Secretary Timothy Geithner, which has since been signed by five other members of the New York Congressional Delegation, which asserts the contract signed between the Mets and Citigroup be unaffected by Citigroup’s participation in the Troubled Assets Relief Program (TARP). Citigroup has publicly stated that “No TARP capital will be used for CitiField or other marketing purposes.”

The Mets will begin play in their new stadium in April 2009. Citigroup purchased the naming rights for the stadium in 2006, years before Citigroup and other major financial institutions required government funds because of the financial sector collapse. The Mets absorbed much of the construction costs of the new stadium because of the naming rights deal.

“Interfering in a binding contract signed by two willing parties is a slippery slope towards sanctioned advertising which I believe is a dangerous precedent to be setting,” said Rep. Engel. “This would unfairly single out a specific company and a particular form of advertising for purely a political reason. It would have a negative effect on free speech in advertising which could cross over into television, radio, cable and newspapers.”

Rep. Engel added, “Should this misguided attack on the Mets and Citigroup be upheld, there are countless other companies who participate in TARP and hold the naming rights in stadiums and arenas around the country. Are we ready to remove their names from those stadiums? Or is this a rule to apply solely to Citigroup and the Mets. It is not only unreasonable but it is reckless to do so.”

Other companies who participated in TARP and currently have naming rights to sports venues include:

* JP Morgan Chase Field in Phoenix
* Comerica Park in Detroit
* Citizens Bank Park and the Wachovia Center in Philadelphia
* PNC Park in Pittsburgh
* M&T Bank Stadium in Baltimore
* Bank of America Stadium in Charlotte
* U.S. Airways Center in Phoenix – U.S. Airways took part in the Airline Stabilization Program.

“Any attempt to cancel this deal would not only affect the team and the bank, but it would be damaging to the New York community already reeling from economic strife. An attack on advertising would send another crippling blow to New York, as it serves as the center of the advertising world. As more and more industries struggle with the financial crisis in America, do we really want to punish advertisers as well?” said Rep. Engel.

Rep. Engel added, “I believe the companies involved in TARP need to be monitored closely, but they also need to be given a legitimate chance to succeed. That is the whole point of the TARP program. Companies can and should continue to advertise their goods and wares. Such companies like Citigroup are an integral part of New York and the nation’s economy and must be allowed the chance to right the ship. There will be a watchful government eye on the taxpayers’ money, but we must also be reasonable with what we demand from these companies. We cannot let our outrage with how some companies have acted with TARP money cloud our view of the bigger picture.”