Citigroup to Halt Funds to ‘NewsHour’

Citigroup, one of two corporate financial underwriters for the Public Broadcasting Service’s nightly newscast, “The NewsHour with Jim Lehrer,” will cease its sponsorship as a result of the uncertain economy.

Citigroup units Travelers Insurance and Salomon Smith Barney split the sponsorship, which officially ends in August.

It’s the second recent blow for MacNeil/Lehrer Productions, which produces the show. Earlier this year, PBS officials told the production company that they were taking back money that had been earmarked for “National Edition,” a national late-night newscast that MacNeil/Lehrer has been hoping to launch with the New York Times, because the company had been unable to line up additional corporate or foundation underwriters, meaning a planned launch later this year had to be pushed back. PBS has said it remains supportive of “National Edition” if the funding can be lined up.

MacNeil/Lehrer President Dan Werner said the loss of a sponsor for “NewsHour,” which has an annual budget of nearly $20 million, “is the normal course of things and we’re looking for another underwriter.” Werner said he remains “very optimistic” about replacing the Citigroup funding for “NewsHour,” now in its 26th year. He declined to say how much of the show’s funding Citigroup represented.

The remaining corporate underwriter is Archer Daniels Midland Co., and additional funding for the program is provided by public TV stations and the Corp. for Public Broadcasting. MacNeil/Lehrer said it had no indication that the ADM sponsorship would not continue.

Still, MacNeil/Lehrer is looking for new money at an inopportune time, given that sponsorships are usually one of the first things to be cut in a down economy. Salomon Smith Barney spokeswoman Susan Thomson said the company is “still very committed to public television and believes that the ‘Lehrer NewsHour’ is a great sponsorship opportunity, but in light of current market conditions we had to step back and assess all advertising and sponsorship opportunities, and we’re not in a position to renew at this time.”

MacNeil/Lehrer has been looking for funding for its second show, “National Edition,” for more than a year, without luck.