First the Pirates, now the Yankees.
General Motors, under financial
distress, is not renewing sponsorship
agreements with some MLB clubs.
The economy continues to pound the sponsorship front for pro sports leagues as General Motors (NYSE:GM) announced Tuesday that they would not be renewing their agreement with the New York Yankees. The news comes less than a week after GM ended their sponsorship agreement with the Pittsburgh Pirates after only one year.
GM is mired in financial losses and is looking for assistance from the federal government.
While GM in not renewing with the Yankees, the company said that it may renew with the cross-town Mets.
“We still want a presence in New York and we can’t do both,” GM Northeast region spokeswoman Andrea Canabal said in a telephone interview with Bloomberg News. “We are looking at what we can do to save some costs.”
As we have been reporting, while some clubs in MLB may feel the effects of the recession less than others, all should feel the pinch when it comes to sponsorship renewals. As Bloomberg News reports, other clubs have already been feeling the hit before the 2009 season starts.
Daimler AG’s Mercedes-Benz pulled out of its deal with the Milwaukee Brewers, Deutsche Post AG’s DHL unit is seeking to end its agreement with the Atlanta Braves, and GM chose not to renew with the Pittsburgh Pirates.
GM will continue to honor deals with the Chicago Cubs and White Sox, Houston Astros, Milwaukee Brewers, Texas Rangers and Philadelphia Phillies, Rhadigan said. The company is negotiating with an unidentified number of clubs, he said.
Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.
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