Doral PGA Golf: Cadillac Sponsors Golf: 6 Year Contract – GM Owes TaxPayers $25B

Donald Trump has recently bought Doral Golf Resort and Spa, just outside of Miami and is in the process of rennovating it. Currently the PGA World Golf Championships-Cadillac Championship is underway at Doral, with everyone including Trump, waiting breathlessly to see if Tiger Wood can show the newest bunch of young upstart, amazing golfers that they are not nearly as hot as he (Tiger). The Donald was on Greta last night via phone and said he was with Tiger Woods and for the first time, I heard that GM is back to advertising in a very big way, by signing a contract for sponsorships for the next six years – in the lingo: Cadillac is an “umbrella sponsor.” Nevermind that GM stills owes taxpayers at least $25 BILLION. Worse yet, this deal was culminated in November 2010, just months after Obama crowed that GM had repaid their bailout debt – a bald lie. The truth was, they simply dipped into yet another bailout pot to pay the first.

Cadillac Escalade 2012

ESPN:

Finchem said Cadillac has assured him that it will be “fully engaged” at Doral within the next few weeks. Cadillac and the PGA Tour are also in talks about bringing golf back to the Detroit area, although Finchem said it would be premature to expect a stop there as early as 2012.

Last year, the automaker ended its half-century run as sponsor of the Buick Open golf tournament near Flint, Mich., as it cut expenses while under bankruptcy court protection. Buick ended a nine-year endorsement deal with golf superstar Tiger Woods in 2008.

Buick had been the longest-standing corporate sponsor on the PGA Tour and once had its name on four tournaments — the Buick Classic in New York, the Buick Challenge in Georgia, the Buick Open and the Buick Invitational. It also took over the Buick Championship in Connecticut for three years after the Georgia event folded.

“I think it’s safe to assume from today’s announcement and from how we’re positioning the brand that Cadillac will be the face of golf for GM going forward,” Cadillac marketing vice president Don Butler said. “It makes sense for our target customers, it makes sense for what we think of the brand.”

GM has returned to profitability? Really? With $25 BILLION+ in indebtedness there are no profits. For the statement below to work, the $25 BILLION cannot show on the books. Only Government Motors has that advantage, denying the same to Ford, which took no bailout.

GM has returned to profitability. It made $4.2 billion through the first three quarters of this year despite slow auto sales in the U.S. The company shed much of its debt and slimmed down to just four brands as it went through bankruptcy court last year, allowing it to make money on far lower sales volumes.

Fox News:

top Senate Republican on Thursday accused the Obama administration of misleading taxpayers about General Motors’ loan repayment, saying the struggling auto giant was only able to repay its bailout money by dipping into a separate pot of bailout money.

Sen. Chuck Grassley’s charge was backed up by the inspector general for the bailout — also known as the Trouble Asset Relief Program, or TARP. Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.

“It appears to be nothing more than an elaborate TARP money shuffle,” Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner.

GM announced Wednesday that it had paid back the $8.1 billion in loans it received from the U.S. and Canadian governments. Of that, $6.7 billion went to the U.S. treasury.

But Grassley said in his letter that a Securities and Exchange Commission form filed by GM showed that $6.7 billion of the tens of billions the company received was sitting in an escrow account and available to be used for repayment. He called on Geithner to provide more information about why the company was allowed to use bailout money to repay bailout money, and how much of the remaining escrow money GM would be allowed to keep.

“The bottom line seems to be that the TARP loans were ‘repaid’ with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials,” he wrote.

I get it that advertising is designed to boost a company’s bottom line. I believe in it, but just as no other company with huge debt can afford such high-profile, expensive advertising, GM should be saddled with the same problem. No advertising until all the money is returned to the American taxpayer – and, certainly no donations to political parties or candidates.

Posted by Maggie @ Maggie’s Notebook