Citigroup says its deal to pay $400 million for naming rights to the Mets’ new baseball stadium is still on.
The bank’s statement came in response to a Wall Street Journal report on Tuesday that Citigroup is exploring the possibility of backing out of the deal.
Just two months before Opening Day, The Wall Street Journal reported that Citigroup officials are discussing whether they should go ahead with the agreement given the ongoing financial crisis and after lawmakers put pressure on them to spend less after receiving federal bailout cash last year.
The company was ripped by members of Congress last week for taking billions in bailout money while spending millions to put their name — Citi Field — on the new ballpark, which is set to open in April and replace Shea Stadium.
“At Citigroup, 50,000 people will lose their jobs. Yet in the boardroom of Citigroup, spending $400 million to put a name on stadium seems like a good idea,” said Rep. Dennic Kucinich (D-Ohio).
Citigroup has suffered losses of $28.5 billion since 2007. The naming rights deal costs $400 million over 20 years.
The Wall Street Journal quoted a Citicorp spokesman as saying none of the bailout money is going toward the naming rights of the new stadium or any other marketing ventures.
The Mets have said they are committed to going ahead with the Citigroup deal.
“In conversations this morning, Citi reinforced that they will honor our legally binding agreement,” the team said in a statement this afternoon.