Bread, Circuses and the Business Climate

By March 24, 2009Economy

From CQ Politics, “Pascrell Says Kill Their Naming Rights“:

Professional sports have long been wedded to corporate sponsorships. But with the economy forcing some sponsors to take bailout money, lawmakers are questioning the rationale for the marriage.

Rep. Bill Pascrell Jr. , D-N.J., fired off a letter today to Treasury Secretary Timothy F. Geithner urging him to force Britain-based Barclays Bank to drop its $400 million naming rights contract for Barclays Center — which would be the new Brooklyn-based home of the New Jersey Nets — because it accepted $8.5 billion in taxpayer bailout money through insurance giant AIG.

“I believe it is appropriate for the U.S. to request that Barclays cancel this naming-rights agreement as a result of the payments made to it through AIG and respectfully request that you take action to that effect,” Pascrell wrote.


The Senate, meanwhile, is having second thoughts about undermining the rule of law and U.S. business climate with the populist targeting of individuals. From The Washington Post, “Senate Will Delay Action on Punitive Tax on Bonuses“:

Jarred by a cool reception from the White House and fears of unintended consequences across the financial world, Senate leaders are likely to delay until late next month legislation to punitively tax bonuses at banks and investment firms that receive federal aid. 


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