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CMGI's Stadium Naming End-Around

CMGI has long defended a $75 million deal to name the Pats' stadium but always left the door open for reconsideration. Today, the door was slammed shut when the company named Jonathan Kraft, son of the team's owner, as a CMGI director.

August 9, 2001
By Colin C. Haley: More stories by this author:

Of particular annoyance to shareholders at CMGI's annual meeting in December, was company's insistence on paying $76 million over 15 years to name the New England Patriots refurbished stadium.

Stung by a 95 percent stock slide, and wary about the win some/lose record of venue sponsorships, they understandably asked, "Wouldn't that money be better spent elsewhere?"

David Wetherell, chairman and CEO of the struggling Internet holding company, defended the move as savvy marketing. However, he left the door slightly ajar, noting that payments don't begin until 2002 and the deal would be evaluated until then.

Now, Wetherell appears to have slammed the door shut, naming Jonathan Kraft, son of Patriots owner Robert Kraft, to the board of directors of the Andover, Mass., company.

The strengthened ties to the pro football franchise makes it virtually impossible CMGI would renege on its commitment. How do you think Kraft would vote if the issue came to a vote at a board meeting?

Further proof that Wetherell is sticking to the ill-advised game plan can be gleaned from Wetherell's statement on Kraft's appointment.

"Jonathan is a leader who keenly understands the role of technology at the junction where business, sports, entertainment and media meet,'' Wetherell said. "Having seen the implementation of his work with many of our companies, I'm certain that his diverse experience will be invaluable to the CMGI leadership team."

Oh my. Eight months, have passed since the annual meeting and good news about CMGI has been as hard to find as poor, misunderstood Patriots wide-out Terry Glenn. In the midst of layoff and other cost-cutting measures, wouldn't now be a good time to take a fresh look at the pact.

If the company doesn't start mounting a comeback soon, look for stockholders to yank Wetherell, or at the very least ask to trade their stock (currently trading at $2.10 per share) for seats at "CMGI Field."







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