GMAC Continues Sponsorship of Bowl Game Despite $5 Billion Taxpayer Bailout
GMAC may be in financial trouble, but that isn't stopping the auto lender-turned-bank holding company from maintaining its corporate sponsorships. The question is - will anyone notice?
In October, GMAC (NYSE:GKM) changed its legal status so that it would be eligible for TARP funds passed by Congress. Late last month, GMAC was approved to receive a $5 billion lifeline from the U.S. government. However, the company is still maintaining its sponsorship of a collegiate bowl game set for Jan. 6 in Mobile, Ala.
"There's about 34 bowl games, 30 of which are sponsored in one way or the other," Fox Business Network's Jenna Lee said Jan. 2 on the Fox News Channel's "Happening Now." "The lower-level, the mid-level games pull in about six figures to have your name attached to one of the games - that's the estimate. And the big games, let's say the Rose Bowl for example, or the Sugar Bowl, or the Orange Bowl - those figures go upwards of $5 to $6 million for some sort of sponsorship."
As Lee pointed out - GMAC is continuing to sponsor the game, although they're in financial trouble.
"So GMAC as you mention - the GMAC Bowl is going to be happening Tuesday I believe and it of course is this lending arm that received government funds and we don't know exactly how much they spent, but they're staying in this."
According to a June 13, 2000 Associated Press story, GMAC originally agreed to pay $500,000 for the naming rights of the Mobile, Ala. bowl game.
"GMAC agreed to pay the city $500,000 for naming rights on the bowl logo, Mobile Mayor Mike Dow said Monday at a news conference announcing the deal," the 2000 story said. The cost of the bowl game at the time was $1 million and split between the city of Mobile and GMAC.
The bowl game provides a positive impact for their local economy according to the 2000 AP story.for a boycott of Alabama.