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While its auditors are busy expressing doubt about the company's ability to continue as a going concern, General Motors Corporation (NYSE: GM) announced that it will not be using its company suites at the NCAA's Final Four basketball event. The seats are part of the sponsorship package, but GM is now talking with the NCAA about what to do with the suites.

This is a relatively small example of the kind of wasteful spending that GM engaged in, with private jets and excessive executive compensation being better examples.

It's all well and good that GM isn't using the suites this year but we should keep in mind that GM has been in trouble for a long, long time. Even when the company's SUV sales were propping up performance, the balance sheet was still an absolute disaster, and the company should have been looking at every option possible for reducing its debt load. Renting out suites to entertain dealers and customers has not been something GM could prudently afford for a long time.

It's yet another very small example of the poor management that has led this company into its current situation and, miraculously, is still allowed to run the show even as taxpayer cash is shoveled in.

Filed under: General Motors (GM)

General Motors cancels NCAA Final Four festivities originally appeared on BloggingStocks on Fri, 27 Feb 2009 17:05:00 EST. Please see our terms for use of feeds.

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