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Bailed-out AIG to drop pricey sports team sponsorships

By Rick Karcher, Michael McCann, Geoffrey Rapp, Greg Skidmore, and Howard Wasserman

One of the reasons I've been blogging relatively lightly in the past few weeks is that I've discovered the Fox Soccer Channel is part of my digital cable package. Although I've been enjoying a number of great soccer games, it is always a bit jarring to see a team of millionaire soccer players running around in jerseys that proudly display the name of a corporation that has recently come begging for money to the U.S. taxpayers.

Today, Reuters broke the story that insurance giant and bailout recipient AIG will not be renewing its $100 million sponsorship of Manchester United, a top English soccer team. AIG is also seeking to renegotiate its current sponsorship -- likely in an effort to escape from the contract's remaining years.

At the time of the bailout, AIG and other corporate sports sponsors receiving federal funds, like Citi, insisted they had no plans to discontinue such sponsorships even in the face of public criticism and the common "Taxpayer field" jokes.

Expect AIG's lead to be followed by other recipients of bailout funds.

Full post as published by Sports Law Blog on January 21, 2009 (boomark / email).