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DENVER'S NEW ARENA TO BE PEPSI'S LATEST POUR-HOUSE
Published March 17, 1995
Pepsi and Comsat's Rocky Mountain Entertainment announced yesterday that Denver's new $132 arena, to open in '97, will be named the "Pepsi Center." Pepsi will have exclusive rights to name the arena, serve its products there and have multi-year sponsorships of the Nuggets and a possible NHL team. Rocky Mountain Entertainment is a subsidiary of Comsat, which owns the Nuggets. Financial details were not disclosed, however, in a presentation last month, Comsat president Bruce Crockett had "valued the deal at about" $68M. Eric Foss, GM of PepsiCo's Western region, said that number is "greatly exaggerated." Coke has exclusive "pouring rights agreements" for its products in 24 of the 27 NBA arenas. According to Information Resources, Denver is a very strong market for Pepsi, as they hold 46% of the market share, while Coke holds only 28% (WALL STREET JOURNAL, 3/17). The DENVER POST reported in November Pepsi would pay $15M up front for the naming rights and an additional $1M a year for 20 years. Comsat and Pepsi may also jointly promote events at the proposed arena and other local venues (Chance Conner, DENVER POST, 3/16).