Pepsi Plans To Continue Sponsoring Penn State, Football Team, Despite Scandal

Pepsi yesterday said that it will "remain a sponsor" of Penn State Univ. and its football team, according to Ron Dicker of the DAILY FINANCE. A Pepsi spokesperson said, "We are very concerned about the current allegations surrounding certain individuals at Penn State University, but will continue to honor our longstanding relationship." Pepsi has been "one of the university's largest corporate partners, and is ubiquitous on Penn State's main State College campus." Soft drinks are "served in Pepsi cups on game day," and their signage is "anchored by a permanent Pepsi logo on the scoreboard" at Beaver Stadium." PSU's endorsement portfolio "faces a potentially massive exodus in the wake" of the child sexual abuse scandal. Cars.com "pulled advertising from an ESPN telecast of Penn State's loss to Nebraska last Saturday, and Sherwin-Williams, the paint company, removed its logo from the banner that hangs during Penn State press conferences." A spokesperson for the Mohegan Sun resort yesterday said that the casino's "deal with Penn State football 'technically' ended for the year." Penn State sponsors AT&T, Berks Hot Dogs and Chesapeake Energy did not respond to questions." Other "high-profile sponsors such as Chevrolet, PNC Financial, John Deere, State Farm Insurance and the American Red Cross are staying put for now" (DAILYFINANCE.com, 11/16). The Marketing Arm Senior Consultant Basia Wojcik said she expects more sponsors would withdraw their support if Penn State was invited to a bowl game. However, she said the Penn State scandal and other scandals in college athletics will not scare away advertisers, as “sponsors in Florida and Texas and other schools, it doesn’t really affect them in the long run." Wojcik: "This is above and beyond athletics so I think it’s more criminal than athletic” (Bloomberg TV, 11/14).

NEED SOME SEPARATION: Nike sponsors Penn State athletics, and REUTERS' Paul Thomasch noted the company is "well-known for standing with its athletes, including Kobe Bryant when he was accused of sexual assault, and Tiger Woods when his tawdry personal life made headlines." However, branding and advertising experts said that the PSU case "may call for a different strategy," as it is "dealing with issues of child abuse and questions about a cover up." Branding and design firm Carbone Smolan Agency Partner Paul Pierson: "You have to distance yourself in a time of crisis. From Nike’s point of view, the value of the Penn State brand has been lost, they have to realize that. They are sponsoring a tarnished brand with a tarnished history. It’s not the time to be wearing a Penn St. sweatshirt" (REUTERS, 11/16).

HARRIS CANNED: In Philadelphia, Suzette Parmley reports the Meadows Racetrack & Casino near Pittsburgh “terminated its working relationship" with Pro Football HOFer and Penn State alum Franco Harris Tuesday "after his criticism of the firing of coach Joe Paterno.” PR firm Makovsky + Company President Kenneth Makovsky said, "Penn State will likely be a risky investment for major corporations for a while to come, as the story's not over and will probably be kept alive with years of litigation" (PHILADELPHIA INQUIRER, 11/17).