Should bailout banks receiving billions of U.S. taxpayer money be allowed to sponsor PGA tournaments?
Rep. Barney Frank and PGA commissioner Tim Finchem have debated the issue. According to WSJ, “Mr. Finchem acknowledged that this controversy already has negatively affected tournament sponsorships. Both Morgan Stanley and Wells Fargo & Co., which are sponsoring tournaments this spring, have said that they will scale back or curtail the entertaining of clients at those events.”
This is complex issue. If the banks are under contract to sponsor a PGA tournament, not sure they can just bail on their contractual obligation without monetary consequences. We’d have to look at the terms of the contract. On the other hand, let’s say that a golf sponsorship costs $20 million or more, but ends up being a loss for the banks or sponsors. It would be hard to justify letting a bank receiving billions of dollars in taxpayer money draining more money on PGA golf tournament.
What say you, dear Readers? Should banks receiving US taxpayer money be allowed to sponsor PGA events?
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