Jan 14, 2010 at 07:55 PM
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Mets Sue SpongeTech For Unpaid Sponsorship

According to today's New York Post, the Mets have filed suit against SpongeTech for being in default of its 3-year, $3.34 million sponsorship.

The New York Post writes:

SpongeTech Delivery Systems, a New York firm that makes soap-filled sponges, is the target of a nasty lawsuit from the Mets' Citi Field that alleges the company stiffed the ballpark out of $300,000 owed for stadium-related advertising by sending them a bum check and then promising a wire transfer that never came.

This comes on the heels of allegations that company executives may have violated federal securities laws. In October, trading was temporarily suspended because of questions that had been raised about the accuracy and adequacy of tbe company's publicly disseminated information concerning among other things, the amount of sales and customer orders, investment agreements entered into and revenues.

SpongeTech has said it will increase its national marketing budget to $20 million for fiscal year 2010, a 100% increase from last year. Last year, SpongeTech sponsored 28 MLB teams, NBA teams the Cleveland Cavaliers and New York Knicks, NHL teams the Chicago Blackhawks and New York Rangers, and eight NFL teams.