Image Source: Pepsi
The NFL and Pepsi just renewed their sponsorship deal, but the Super Bowl halftime show will no longer be part of Pepsi’s rights.
The League and the snack and soda company have been partners for almost four decades. This year, they renewed their partnership after the spring meeting in Atlanta.
The agreement was signed by the owners of the NFL, giving Pepsi’s brands like Tostitos and Frito Lay premium rights. The deal also includes pouring rights in all league-related events, including NFL the Draft, with Gatorade retaining high visibility on the sidelines.
The parties did not reveal the terms of the renewal; though, according to sources, the last deal between the two parties was worth $2 billion for ten years.
“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,” said Tracie Rodburg, NFL’s senior vice president of sponsorship management.
NFL’s removal of Pepsi’s rights over the Super Bowl halftime show was surprising but not uncommon. The latest Super Bowl brought hip-hop icons Dr. Dre and Snoop Dogg in front of thousands of NFL fans in 2022. Before Pepsi, Bridgestone earned the rights of the halftime show; now, any party has the chance to earn it.
This would be the second time since 2012 that Pepsi was not given the rights to the Super Bowl.
It is ‘tough to justify’ the potential cost of the recent move by the NFL, says Anheuser-Busch, former vice president of global sports and entertainment marketing.
During the 2021 season, Pepsi spent $114 million during NFL events, including the playoffs. A year before that, the company’s spending reached $127 million. Additionally, Pepsi has 15 deals with clubs in the NFL, including the Dallas Cowboys.
NFL owners may change the location of their annual pre-draft event, according to some reports. The possibility was announced after it was revealed that Dallas and Los Angeles might be considered.
Team owners have also finalized keeping the combine event in Indianapolis in 2023 and 2024. This year, the combine event garnered around $9.6 million in earnings.
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