How can GMAC sponsor a bowl???

[glaserjohn]

In the day of extreme economic crisis how can GMAC, Citibank, etc fork out the money for bowl games and then turn around and ask for an economic bailout package that we, the tax payer, ended up paying for in the end.

Talk amongst yourselves.

Personally I think it is yet another reason for a playoff.

 

[freeagent]

In the day of extreme economic crisis how can GMAC, Citibank, etc fork out the money for bowl games and then turn around and ask for an economic bailout package that we, the tax payer, ended up paying for in the end.

Talk amongst yourselves.

Personally I think it is yet another reason for a playoff.

Serious answer:

Probably GMAC has a long term agreement to sponsor this bowl game. Unless the parties agree to a termination (which the bowl committee probably would not without a sponsor to take their place), GMAC is contractually on the hook.

I'd also bet that there are some legal differences between GM and GMAC, so that if GM filed for bankruptcy (which could invalidate some agreements; I'm not a lawyer and only play one fairly poorly on a message board), the GMAC bowl agreement could still be valid.

There's been a lot of press on how the economic fortunes of major companies are affecting a lot of sports events ... I believe Mr. Jones is sweating how he's to get some company to pay the big bucks for naming rights to the new Cowboys stadium (and wishes he had cut the deal six months or a year ago as opposed to waiting until now) ... Tiger Woods and GM/Buick agreed to terminate their deal (and Buick will reduce the number of vehicles that they make available for golf tournaments) ... NASCAR, golf and tennis groups are really worried about how they will continue to operate many of their events, since they are very much more dependent on sponsorships as opposed to broadcast/gate revenues for their sports.

I do remember a few years back, the Alamo Bowl went a year without a sponsor (they started with Builders Square, then to Sylvania, and then to Master Card before cutting a long term deal with Valero; one of those years they were "sponsorless" and I think had to draw on reserves for that year's game).

I understand that Podunk High's sixman sponsorship deal with Bubba's Bait Shop is still pretty solid ...