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SBJ/November 22 - 28, 2004/SBJ In Depth
Deals that caught our eye in 2004
Published November 22, 2004
NFL big winner
While NFL owners reshaped the NFL Trust in terms of which sponsorship categories the league should sell and which ones teams should have to themselves, the league was able to pull off several major sponsorship deals that saw their partners get fewer rights at higher fees.
First up, Visa renewed its NFL sponsorship for six years at a cost of $300 million. The deal gave Visa league rights, including the NFL shield, Super Bowl and Pro Bowl marks and collective use of the 32 team trademarks.
Gatorade agreed to an eight-year, $384 million sponsorship renewal that features the ultimate in product placement: Gatorades sports drink, logo and towels along the sidelines of the leagues 32 teams.
The ink had hardly dried on that deal when Gatorade parent PepsiCo and the NFL agreed to extend their sponsorship deal through the 2011 season. Sources valued that deal at $560 million. The agreement involves the companys Pepsi, Tropicana and Frito-Lay brands.
Sounded like a good idea
We salute the deals that looked good on paper, but
In May Major League Baseball Properties agreed to a marketing sponsorship with Columbia Pictures and Marvel Studios around the release of Spider-Man 2. MLB agreed to decorate its bases, pitching mound rubbers and on-deck circles with a spider-web pattern. However, fans and the media balked and the web-slinging concept was squashed.
In October SBC Communications offered $1 million-plus to be title sponsor of the annual Michigan-Ohio State football game for two years. Fans and alumni flagged the idea, so the deal was scrapped.
Major League Baseball cashed in on the successful playoff run in the previous season by signing three big sponsorship deals.
Bank of America signed a five-year deal worth a reported $90 million to $100 million to be the leagues official bank. Taco Bell agreed to a three-year, $25 million deal to become the official fast-food restaurant of MLB. Ameriquest Mortgage became the official mortgage company of the league. Terms were not disclosed.
A piece of the action
If any brand knows what it means to perform a frontside 180 ollie or a corkscrew, its Mountain Dew. The brand has been so active in action sports, it was obvious that Dews door would be knocked on first when Clear Channel and NBC announced plans for an extreme sports tour.
Mountain Dew signed on as title sponsor, clearing the way for the Dew Action Sports Tour to begin in 2005. Sources said the sponsorship was for four years plus an optional fifth at an average of $3.6 million a year.