GMAC Continues Sponsorship of Bowl Game Despite $5 Billion Taxpayer Bailout

businessandmedia.org ^ | January 2, 2009 | Jeff Poor

[Rufus2007]

GMAC may be in financial trouble, but that isn’t stopping the auto lender-turned-bank holding company from maintaining its corporate sponsorships.

In October, GMAC 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.”

...more (w/video)...

[Rufus2007]

I guess this one went unnoticed.

[omega4179]

How dare GMAC have a marketing department!

[Las Vegas Ron]

The contract to do this was probably done and paid for a year agao

[Las Vegas Ron]

And I meant to add, how are they supposed to sell without advertising their product?

[EGPWS]

In October, GMAC 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.

Hey, this stylish government takeover worked for the U.S.S.R. didn't it, why wouldn't it work for the U.S.A.?

[MplsSteve]

College Football PING?

[I see my hands]

To: JEFF POOR

What was your 2007 personal federal income tax liability? Did you receive and cash a federal govt. stimulus check?

Nothing personal, I'm just curious how pristine those who are doing all the carping are.

[blam]

"The contract to do this was probably done and paid for a year ago"

I agee but, they still have my money when they should gone out of business.

[Emmett McCarthy]

It’s right in line with the way some of us at a local level get to pay dramatically higher property taxes to build these stupid stadiums for privately-owned football teams. Isn’t access to sporting events guaranteed under the U.S. Constitution?

[hunter112]

What if they used that as a gimmick? Say they started on January 25th, and said, "We're cutting off all advertising for the month of February, come in, and get an EXTRA $1000 off of a car!"

When you see the enormous amounts being spent on advertising at all levels, it's gotta cost nearly that per vehicle for the few cars they're selling these days.

[PugetSoundSoldier]

I gladly took my rebate and used it; it was a tax rebate, and a small amount of the total taxes I paid. GM did not pay $5 billion in taxes, let alone the $100 billion it would take to equal the amount of rebate I received from that $600 check.

[Las Vegas Ron]

I agee but, they still have my money when they should gone out of business.

I coulddn't agree with you more, but that wasn't my point

[Las Vegas Ron]

advertising for the month of February, come in, and get an EXTRA $1000 off of a car!"

Unless I am misunderstanding your point, they would have to advertise that, no?

[EGPWS]

GMAC changed its legal status...

At one time GM was free and twisted governments arm via their production as a company promoting freedom.

During WWII another option wasn't available to maintain sovereignty as a nation.

Today, government dictates.....

[Non-Sequitur]

And how much did Citigroup agree to pay for the naming rights to the Mets new stadium? And how many billions did they get from the Feds? What about Citizens bank and the Phillies? Bank of America? M&T Bank?

[hunter112]

Yes, they would advertise it for the last week of January, then go silent. February's a short month, they can piss money away like gangbusters again in March if they want. Or, if they still feel that advertising during the Super Bowl would actually convince people to buy cars, they could just delay the whole thing until March.

I remember when ARCO Oil decided it would no longer take credit cards so that it could save money on the sale of gasoline, and pass that on to the buying public. They consistently sell for about ten cents a gallon less than their competitors. It's going to take something besides the old ideas to get things moving again.

[I see my hands]

"I gladly took my rebate and used it"

I didn't get one. I guess I paid for yours. Your sense of entitlement is bold.

The check wasn't a rebate, it was welfare.

[PugetSoundSoldier]

Yes, paying $12,000 in taxes, and getting a $600 check is definitely welfare...

[Las Vegas Ron]

It's going to take something besides the old ideas to get things moving again

As I posted earlier, these ad deals are made and paid for way in advance, so they are committed...now if they had gone bankrupt...

We probably both know what it's going to take for the auto industry to get out of this mess and we both know it will never happen

[I see my hands]

"Yes, paying $12,000 in taxes, and getting a $600 check is definitely welfare"

Do you think 12K pays for your family's keep? I paid much more Fed income tax than 12K, didn't get a check and paid for yours.

Too bad takers can't market rationalizations.