Citigroup has been getting hammered on the Mets
naming rights deal, but they're certainly not the only
banking institution getting TARP dollars while spending
millions in stadium sponsorship deals.
CORRECTION:Â The original article had listed Citizens Bank as receiving TARP funds. This was in error. Citizens Bank South has been cited as collecting TARP funds, not Citizens Bank.
Citigroup, Inc. (NYSE: C) has been the target of public criticism over their record $400 million naming rights deal for the new Mets stadium set to open this year, but theyâ€™re not the only banking institution receiving federal bailout money in the sports sponsorship game.
While Citiâ€™s deal is by far the largest deal (20-years at $20 million annually), several other U.S. banking intuitions are taking in Troubled Asset Relief Program, or TARP monies while investing heavily in the stadium sponsorship game.
Bank of America, Corp (NYSE: BAC) will invest $140 million over the life of an agreement that runs 2024 for the naming rights for the Carolina Panthers stadium. Each year, $7 million flows into the Pantherâ€™s coffers for the right to have their name on the stadium. They also have been working for sometime on a lucrative in-stadium naming rights deal at the new Yankee Stadium. Outside of naming rights, BofA has a league deal with MLB, along with 10 sponsorship agreements at the club level including the Yankees, and Red Sox. Club agreements with the NFL include the New England Patriots, Washington Redskins, Dallas Cowboys, and Carolina, along with the Pantherâ€™s naming rights agreement. How much is Bank of America receiving in TARP money (so far)? $45 billion.
The other banking institution that has been competing with Bank of America for the in-stadium naming rights deal at the new Yankee Stadium is JPMorgan Chase & Co. (NYSE: JPM). They have received $25 billion in TARP money while spending $66 million for the naming rights for the ballpark formerly known as Bank One Ballpark, home to the Arizona Diamondbacks. When Chase purchased Bank One, the naming rights deal was assumed by Chase, hence its new name, Chase Field.
PNC Financial Services Group Inc. (NYSE: PNC) is paying $2 million annually till 2020 (or, $22 million more over the life of the agreement) to have their name associated with the Pittsburgh Pirates ballpark (PNC Park). They are receiving $7.7 billion in TARP money, and used much of it to purchase National City Corp. (NCC).
Comerica is receiving $2.25 billion in TARP money, and has the naming rights to the Detroit Tigers ballpark (Comerica Park) at $2.2 million annually till 2030, or a balance of $46.2 million.
The Baltimore Ravens are receiving $5 million annually from M&T Bank till 2018, or a balance of $45 million. M&T Bank is receiving $600 million in TARP dollars.
According to Bloomberg News, â€śAt least two other banks that have applied for TARP funds are paying for naming rights. BankAtlantic Bancorp. Inc., which requested $124 million, is spending $27 million to have its name on the arena where the Florida Panthers play hockey. Raymond James Financial Inc., which is spending $45 million for having its name on the stadium where footballâ€™s Tampa Bay Buccaneers play, also asked for funds.â€ť
The deal with the Tampa Bay Buccaneers pays $3.1 million annually till 2026, while the deal with the Florida Panthers pays $2 million annually till 2015.
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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