SBD/September 7, 2011/Marketing and Sponsorship

NFL And PepsiCo Renew Partnership, Align Several PepsiCo Brands With League

Gatorade will continue to be featured sideline drink during games under deal
The NFL yesterday announced the renewal of its partnership with PepsiCo with a new agreement that will take effect in '12. The deal will align several PepsiCo brands with the NFL, including Gatorade and Frito-Lay, which will continue their relationships with the league, and Pepsi Max, which will remain the league's official soft drink. Additionally, Quaker Oats and Tropicana will be new partners with the NFL, and PepsiCo will continue to sponsor the NFL Int'l Series (PepsiCo). Sources estimated that PepsiCo "will invest up to $2.3bn through its NFL sponsorship up to 2022." The sources added that the NFL will receive "between $15m and $20m a year for each brand" (FINANCIAL TIMES, 9/7). The WALL STREET JOURNAL's Matthew Futterman reported the deal is "one of the largest sponsorships to date in U.S. sports." A source said that "in addition to the national rights fee, PepsiCo could spend an estimated $1.3 billion on marketing and other NFL-related spending during the agreement." The NFL previously "announced new sponsorship deals with insurer USAA and electronics company Bose Corp., as well as a renewal with auto maker General Motors Co." NFL officials said that "sponsorship revenue will rise 15% this year, pushing projected league revenue to a record $9.5 billion, $100 million more than was previously projected." PepsiCo Senior VP/Global Sports Marketing Jennifer Storms said that "securing the NFL extension was an important goal, with the current deal set to expire at season's end." NFL Media COO Brian Rolapp said that the "PepsiCo deal would have been tough to pull off had the lockout not ended" (WALL STREET JOURNAL, 9/6). PepsiCo Chair & CEO Indra Nooyi said, "We'll have all kinds of engagement with the fans in-stadium and fans at home because we have an incredible lineup of products." NFL Commissioner Roger Goodell: "We're fortunate. Our sponsorship business is up, particularly coming off of a difficult lockout and obviously we're still going through a very difficult economy. But I think it shows the strength of the NFL and our relationships. ... This is more than just a sponsorship agreement. This is really a partnership to promote each other's brands and to make them stronger and do that on a global basis" ("The Call," CNBC, 9/6).

NEW LODGINGS: Marriott Int'l yesterday announced it signed a multiyear deal with the NFL to be the league's exclusive lodging category sponsor. Courtyard by Marriott will be the official hotel of the NFL, and will continue its four-year relationship with NFL Network, NFL.com and NFL Mobile from Verizon throughout the partnership (Marriott International).
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