Image Source: Pepsi
NFL and Pepsi have renewed their sponsorship deal, but the NFL excluded the Super Bowl halftime show from the new deal.
The soda and snacks company has been a league partner for almost four decades. The renewal happened after this year’s NFL spring meeting in Atlanta, which representatives from both sides attended.
The renewal of the NFL sponsorship gives Pepsi premium rights for some of its brands like Tostitos and Frito Lay. In the agreement, it is announced that they will be able to have pouring rights at NFL events, including the NFL draft, which means more exposure to the Gatorade sports drink – maintaining high visibility from the sidelines.
The terms of the renewal were not revealed to the public – according to sources, the last deal was estimated at $2 billion for ten years.
NFL’s senior vice president of sponsorship management, Tracie Rodburg, said: “Our priorities and their priorities have evolved, and we wanted to make sure that as we continue this partnership that we’re all working toward the same goal.”
The removal of Pepsi’s rights from the Super Bowl halftime show came as no surprise to many. The last Super Bowl featured hip-hop icons Dr. Dre and Snoop Dogg in front of thousands of crowds. Before Pepsi, Bridgestone owned the rights. Now, it’s been opened to the market.
This would be the second time since 2012 that Pepsi was not given the rights to the Super Bowl.
According to the former vice president of global sports and entertainment marketing in Anheuser-Busch, the recent decision of the NFL is “tough to justify,” especially considering the possible potential cost.
In the 2021 season, Pepsi spent $114 million during the games, including the playoffs, while in 2020, the company’s spending reached $127 million. In addition, Pepsi holds 15 deals with clubs in the NFL, including the Dallas Cowboys.
The NFL has hinted to fans that they are considering moving the pre-draft scouting event out of Indianapolis and into either Dallas or Los Angeles.
Meanwhile, NFL team owners have also decided to keep the combine event in Indianapolis this 2023 and 2024. Combine events of the league often earn millions; this year, the earnings reached $9.6 million.
