A potential $10 billion fine for BNP Paribas could see it cut back on its tennis sponsorship, according to Bloomberg Businessweek. The U.S. government is pursuing the company for financial transactions that violate sanctions against countries such as Iran, Cuba, and Sudan.
The fine, if imposed, could be larger than the bank's annual profits of $7.7 billion, affecting its ability to spend on promotional activities. The French government has asked for the amount to be limited to avoid economic repercussions, and discussed the issue with President Barack Obama during his trip to France this week.
A BNP Paribas spokesperson referred to in the story would not comment on the potential impact for sponsorship.
The French bank, which is one of the largest sponsors of tennis, spends $30 million a year on events like the French Open, Indian Wells, the Paris Masters, the WTA Finals, and the Davis and Fed Cups. Its deal with the French Open, Davis Cup, and Fed Cup runs for another two years, while its title sponsorship of Indian Wells is for another four years. It has also extended its sponsorship of the WTA Finals for another five years.
Former USTA president Frankin Johnson, speaking to the Desert Sun, said that the issue was of "great concern" but that the company would probably continue its existing deals. "They would have to cut back on things, but there is an existing contract," he said. "The question is if it would come up for renewal, will they back off."
The company first got involved in tennis when it signed on with the French Open in 1973.