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Magic signs PepsiCo for Amway Center
Published June 28, 2010
The Orlando Magic has signed PepsiCo as its third founding partner for Amway Center, the team’s $480 million arena opening in October.
The five-year deal is valued at seven figures annually, said Alex Martins, the Magic’s chief operating officer. It’s on par with deals the club signed with the first two founding partners, AirTran and technology provider Harris Corp. The Magic calls them Champions of the Community partnerships.
PepsiCo has been a team sponsor with pouring rights for all 21 of the Magic’s seasons in the NBA at Amway Arena, the team’s old facility.
The previous deal fluctuated in value over the years, Martins said. At one time, PepsiCo was a major media sponsor when the Magic controlled its television rights before surrendering them to the local Fox regional sports network.
Over the years, the Magic also had separate agreements with Gatorade, a well-known PepsiCo brand, Martins said.
Moving forward, the new deal ties all PepsiCo brands, including its Frito-Lay snack line, together into one joint partnership with exclusivity in the hydration, carbonated soft drinks, bottled water, carbonated caffeine-based energy drinks and packaged salty snack foods categories.
The deal places equal value on PepsiCo as an arena partner with all its brands on display 365 days year at Amway Center. Previously, there were events outside of Magic games at the old arena where Pepsi could not display its brands, Martins said.
The soda maker and other founding partners’ exposure extends outside Amway Center on a 2,800-square-foot video screen attached to the east wall. The screen faces Interstate 4 in downtown Orlando, where thousands of motorists will pass the building every day.
The Magic expects to sign four more Champions of the Community deals by the time the arena opens, team officials said. Those agreements do not include the 10-year, $40 million naming-rights deal that Amway Global signed last summer.
The Magic handled the sponsorship sale in-house.