NEW YORK — When the economy was healthy, no one batted an eye at Citigroup’s agreement to spend millions of dollars to put its name on the New York Mets’ new stadium.
But in a recession that has seen the bank accept $45 billion in government bailout money, the move is viewed by some lawmakers as an example of lavish spending — akin to millions of dollars spent on corporate jets.
Business experts say advertising and other marketing efforts are not luxuries at all. To the contrary, they say, strong marketing strategies are even more important in tough economic times.
According to Mark Peroff, an intellectual-property lawyer at Hiscock & Barclay in New York, a stadium deal is “probably the most economical way to advertise because of the number of people that you capture.” The question, though, is how appropriate the deal is now that the landscape has drastically changed.
“You have to have the right tone. People in these times have very sensitive ears,” said Don Sexton, a professor of marketing at Columbia Business School and a principal at the Arrow Group, a marketing-consulting firm.
Citigroup’s contract with the Mets is the biggest stadium naming-rights deal ever. The bank is paying the team $400 million over 20 years to call the ballpark Citi Field. Another bank operating with the help of government capital, Bank of America, is reportedly paying $7 million a year for naming rights to the Carolina Panthers’ stadium. The Associated Press
