On the day we first reported on the potential Bank of America sponsorship deal the Yanks were set to sign for the new stadium, the Dow closed at 11510.74. Tonight, the market sleeps at 7182.08, and the potential sponsorship deal is dead.
The AP reported on the demise of a deal that could have brought the Yanks upwards of $20 million a year for the next 20 years. Ronald Blum writes:
The New York Yankees and Bank of America ended months of negotiations on a long-term, high-profile sponsorship agreement, fallout from the financial industry’s decision to accept aid from the federal government.
While the sides never discussed naming rights to the team’s new $1.5 billion stadium, they had talked about the possibility of a 20-year deal that would have included signage, special events and tickets.
“With the downturn in the economy and the effect on financial institutions including government support of those institutions, we have determined that it is better to enter into a traditional business arrangement with a financial institution,” Yankees spokeswoman Alice McGillion said.
According to the AP, BoA had been the Yanks’ official bank since 1994. It’s unclear if they will continue to sponsor the team in a more limited capacity.
Meanwhile, it’s a bad sign for everyone that Bank of America backed out of a deal that is both lucrative for them and for the Yanks. According to the AP Joe Goode, a bank spokesperson, noted that a spending of $1 by the bank on the Yanks generated a 1000 percent revenue return and a 300 percent income return.
“We recognize that our decision not to pursue a long-term partnership with the Yankees reflects a lost revenue opportunity for our company, however these are unprecedented times that perhaps call for some very difficult decisions,” Goode said.