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FINANCIAL SYSTEM IN CRISIS

Firms' woes may be seen at stadiums

Many venues and sports teams bear the names of companies that have faltered or failed in recent weeks.

October 01, 2008|Samantha Gross | The Associated Press

NEW YORK — First the bursting of the dot-com bubble in the 1990s, then the accounting scandals earlier this decade, forced ballparks and arenas around the country to change their names. Enron Field became Minute Maid Park, and names such as PSINet Stadium and CMGI Field vanished.

Now, the Wall Street meltdown is creating its own identity crisis for arenas and teams that bear the names of financial companies that are suddenly disappearing or in distress.

The Wachovia Center arena in Philadelphia and WaMu theaters at Madison Square Garden and in Seattle are among the venues whose names face an uncertain future.

Similarly, players on England's storied Manchester United soccer team wear the AIG name on their jerseys, advertising American International Group Inc., a company that fell so deep into financial trouble that the U.S. government took control of it.

Some corporate names -- Washington Mutual Bank, for one -- could vanish from Wall Street altogether. In other cases, the public and stockholders could begin to wonder why these struggling companies are tying up scarce funds on multimillion-dollar sports sponsorship deals.

As a result, some arenas might see a name change.

"I would think that would be the top order of the day to get that switched over," said Rob Vogel, president of Bonham Group, which helps broker sponsorship and naming-rights deals. "It's in everyone's best interests to get that rebranded as quickly as possible."

When Enron Corp. collapsed in a spectacular case of accounting fraud, the Houston Astros were quick to scrub the company's name from the team's ballpark, Enron Field. It was rechristened Minute Maid Park within months.

Most naming-rights contracts provide for such a switch.

Although each agreement is different, the details -- and cost -- are usually left to whomever acquires the sponsoring company, said Dick Sherwood, president of Front Row Marketing Services, which helps negotiate such deals.

If Citigroup Inc., which agreed to buy Wachovia Corp.'s banking operations Monday, were to change the name of the Wachovia Center, the home of the Philadelphia Flyers hockey team and 76ers basketball team, it could cost around $1 million to install new signs, issue employees new uniforms and design new logos, Sherwood said.

Any new name on Wachovia Center would be the fourth since 1994, after a series of bank mergers.

"We've been going through this for years, because banks have been sold and bought at a pretty rapid pace anyway," said Sherwood, whose office is in the building.

After cable TV company Adelphia Communications Corp. filed for bankruptcy in a corruption scandal, the Tennessee Titans football team's Adelphia Coliseum became just the Coliseum. Later it was named LP Field after a deal with Louisiana-Pacific Corp.

The Baltimore Ravens football team had to change the name of its stadium -- PSINet Stadium -- after the Internet company filed for bankruptcy. The stadium is now named after M&T Bank.

A Citigroup spokeswoman said it was too early to speculate what might happen to the Philadelphia arena.

And for now, it appears that the players of Manchester United will keep the American International Group name on their uniforms. AIG spokesman Joe Norton said that "nothing has changed" with the sponsorship deal.

A message left for a Washington Mutual representative went unreturned. WaMu failed and was bought by JPMorgan Chase & Co. last week.

Vogel said companies will probably take some time to decide what to do with the naming deals, and some will probably try to buy their way out of the agreements.

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