When the new stadium for The New York Mets opens next year, it will be called Citi Field. Given the number of the financial firm's employees who are out of work and the large numbers who will be fired in the future, the Citigroup (NYSE: C) name on the park borders on cruelty.
According to The New York Times, "With high name recognition and a place among the world's banking leaders, Citigroup hardly needed the Citi name plastered on a ballpark to enhance itself." The arrangement runs for 20 years and has a total cost of $400 million.
The naming rights hardly seem like a good idea for Citi's shareholders.
Although the bank's stock has recovered somewhat recently, shares are still at only $19.35 compared to a 52-week high of $52.18.
The decision to move ahead with the deal calls into question, once again, the judgment of Citi CEO Vikram Pandit and his management. A firm losing billions of dollars a quarter hardly seem a candidate for being caviler with its cash.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
7-21-2008 @ 5:11AM
Miller said...
This cannot be for real! $400 million of shareholder money, for nothing. Further proof that this out-of-control company has no stewardship and is heading for $zero$. Nobody's behind the wheel of this jalopy that's speeding toward the cliff.