I have long had the view that one sure sign of a firm's pending demise is that they decide to buy stadium rights (uh sorry to anyone marketing this type of thing ;) ). Consider: Adelphia (had both Adelphia Court at St. Bonaventure and the dreaded Adelphia Coliseum in Tennessee), Enron (and the former Enron Field), do we add the new Citi Field to the list?
BTW There could be some rationale for this. Best guess an agency cost problem. Firms that feel important enough to buy stadium rights probably are forgetting the shareholders and the overconfidence leads to excessive risk taking.
BTW Here is some academic evidence that naming a field after your firm does not help firm's profitability.
It should be noted that the Citi deal is not done and maybe the bailout will save the firm and keep it named Citi Field. As a Mets fan, I just hope that it is not an omen of other large collapses!
1 comment:
I think WE need a bailout. So I did some research and found tons of great bailout's for us that no one talks about.
Check out current bailouts for us.
Bailout Types for 2009
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