PepsiCo signed a multi-faceted marketing agreement to become
the "Official Soft Drink" of MLS; the U.S. Soccer Federation; and
two soccer youth groups, the American Youth Soccer Organization
(AYSO) and the U.S. Youth Soccer Association (USYSA). The deal
gives Pepsi soft drink exclusivity as an "Official Sponsor" of
each organization. Rights include, but aren't limited to: Use of
MLS, U.S. Soccer, AYSO and USYSA names and registered marks in
ads and promos; field board signage and/or recognition at MLS and
U.S. Soccer National Team games; official sponsorships of, and
display rights at, MLS youth camps and U.S. Soccer youth programs
and sport development programs; uniform sponsorship of the MLS
Colorado Rapids and rights to utilize MLS players in ads; an ad
package on ABC for MLS Cup '96; and sponsorship of U.S. Soccer's
National Teams in all world championship events, including the
'98 World Cup (MLS).
TERMS: MLS spokesperson Steve Vanderpool told THE DAILY
Pepsi's deal with MLS is for four years. Other MLS top-level
sponsorships have been reportedly worth $2M annually, and
Vanderpool said the Pepsi deal is "on par with the other top-
level MLS deals" (THE DAILY). The WALL STREET JOURNAL's Stefan
Fatsis puts the deal at three-years, $6M (WALL STREET JOURNAL,
10/18). In Boston, David Halbfinger has the deal at three-
years, $10M, including a $1.5M annual rights fee. That brings
MLS' total sponsorship and ad sales to $70M through '99 (BOSTON
GLOBE, 10/18). PepsiCo Spokesperson Alyssa Schaier told THE
DAILY it would be fair to categorize the agreements with U.S.
Soccer, the AYSO and the USYSA as "multi-year deals." No value
was disclosed (THE DAILY).
POURING RIGHTS: Schaier said pouring rights depend on
agreements with each stadium, and are not a "highlighted element"
of this agreement. She added PepsiCo was lured by the demos it
can reach through soccer, specifically the youth and American
Hispanic markets (THE DAILY).
ANOTHER MLS DEAL: MLS stars Alexi Lalas and Eric Wynalda
have signed endorsement contracts with MLS licensee, BMG
Interactive, to become the exclusive spokespeople for BMG's
first-ever electronic soccer game which will launch next year for
PlayStation, Saturn and PC-CD (SportsNet).
