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.

[PistolPaknMama]

I saw this on FOX this afternoon.

They're all crooks and the government We (or somebody) elected is complicit.

Most people won't even know this because they don't watch FOX or lurk on FR.

[GOP_Raider]

The FR College Football Ping List FReepmail GOP_Raider to be on or off this list

[eyedigress]

Good Luck tonite. This is one hell of a test for UTAH!

[eyedigress]

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

For me it was a new 40cal handgun. :^)

[eyedigress]

I realize it has nothing to do with this thread but I imagine you’ve got some kind of a party set up.

[GOP_Raider]

Thanks, I really appreciate it.

Unfortunately, I have to work tonight so I’m going to be here with FOX on one of my monitors—a bunch of my friends in SLC are in the Big Easy as we type however. I’ll have burned an ulcer or two through my stomach if this one is still competitive in the 2nd half. :)

[bronxboy]

Exactly, they have withdrawn from future games. In fact, corporate sponsors are dropping like flies. Nascar is in trouble also.

[eyedigress]

It’s a big game but you guys didn’t go undefeated for no reason.

[okie01]

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

That this snotty report is from a website called businessandmedia.org is quite revealing, too.

Evidently, the editors of the website have no clue as to how businesses use media to promote their product.

Advertising pays the media's freight but reporters are so dumb as to bite the hand that feeds them.

[norwaypinesavage]

"GM did not pay $5 billion in taxes."

GM pays substantially more than that annually when you consider all of the payroll, income, and business taxes for itself and its employees.

[EDINVA]

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

Not to mention what the penalties for withdrawing the sponsorships would have been.

[Las Vegas Ron]

Advertising pays the media's freight but reporters are so dumb as to bite the hand that feeds them.

Exactly...kind of like how the gubmint treats us taxpayers too, ba$turds

[BurbankKarl]

If GMAC paid $500k for 8 years of sponsorship, that would be a no brainer.

Unfortunately, this article is so poorly written you can not ascertain the facts.

[PugetSoundSoldier]

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.

Then you are either a non-resident alien, or your AGI was above $87,000 or you are lying. For those that paid taxes, this is not welfare, this is a net reduction in tax rates.

I suppose any cut in taxes - or any mid-year correction in deductions, such as with vehicle mileage - is a welfare check in your eyes? Do you just give your entire check to the Government?

[org.whodat]

Would it not be that the tax payers sponsored the bowl games!!!

[jammer]

You sound like a good Ted Kennedy-Democrat, where a tax cut is a "tax expenditure," or, in this case, where getting money back on the taxes paid is welfare.

If you paid more than 12k, why did you not get the rebate? If you made too much, I understand your gripe. But your thinking is wrong.

[I see my hands]

"Then you are either a nonresident alien, or your AGI was above $87,000 or you are lying"

"For those that paid taxes, this is not welfare, this is a net reduction in tax rates"

"Do you just give your entire check to the Government?"

Guess which.

Wrong again, greedy. I paid fed income taxes, lots of them. I got no reduction, you got a dole check.

Apparently not. I'm also passing out $600 checks to those whose only claim is they aren't productive enough.

Now that you've taken what others created just shut up if you can't say thank you.

[I see my hands]

"You sound like a good Ted Kennedy-Democrat."

Yeah right, while my money is in your pocket. You moochers have got more nerve than a bum tooth and zero moral authority to opine negatively on corporate bailouts.

[PugetSoundSoldier]

Sucks to be you, I guess... You need a new CPA if you couldn’t get your tax rebate, since it only went to those who made less than $87,000 AGI and paid more than $600 in Federal income tax.

Or you’re just upset that you’re in a higher tax bracket? Progressive tax rates suck, but with the $87,000 AGI cap all this is, is an adjustment to that progressive rate.

I paid far more in Federal taxes than $600; I got some of that back. Maybe you need to learn more about how to structure your income so you can benefit from the lowest possible tax rate. See Judge Learned Hand for some choice quotes about the duty of citizens to do just this.

[eyedigress]

I’ll jinx you now. Congratulations! (Your team has changed the landscape of the BCS)

[Larry Lucido]

LOL!!!

Stop making sense!!!!

[gore_sux]

It’s also kind of funny to read the PGA schedule and see how many tour sponsors may need to be “rescued”:

Bob Hope Chrysler Classic
Buick Invitational
FBR Open
Arnold Palmer Invitational presented by Mastercard
Puerto Rico Open presented by Banco Popular
Zurich Classic of New Orleans
Wachovia Championship
The Memorial Tournament presented by Morgan Stanley
Travelers Championship
Buick Open
U.S. Bank Championship in Milwaukee
RBC Canadian Open
The Barclays
Deutsche Bank Championship