Papa John's Founder & CEO John Schnatter, whose company has been the NFL's official pizza sponsor since '10, is "going after NFL Commissioner Roger Goodell, saying weak handling of the league’s national-anthem controversy has hammered sales of his pizza," according to Craig Giammona of BLOOMBERG NEWS. Schnatter on a company earnings call today said, "The NFL has hurt us by not resolving the current debacle to the players' and owners' satisfaction. NFL leadership has hurt Papa John's shareholders." Schnatter: "Leadership starts at the top, and this is an example of poor leadership." He added of the protests, "This should have been nipped in the bud a year and a half ago. Like many sponsors, we're in touch with the NFL. Once the issue is resolved, we're optimistic the NFL's best years are ahead" (BLOOMBERG NEWS, 11/1). ESPN.com's Darren Rovell reports that Papa John's has "pulled much of its NFL television advertising and that the NFL has responded by giving the company additional future spots." Papa John's President & COO Steve Ritchie in revising sales estimates for the company's next quarter said that the NFL deal was the "primary suspect behind the decline and that 'we expect it to persist unless a solution is put in place.'" In addition to the league sponsorship, Papa John's also has "deals with 23 individual teams" (ESPN.com, 11/1). Papa John’s last month said that in-game pizza sales had fallen since President Trump first criticized protesting players in September (THE DAILY). ESPN’s Will Cain said Papa John’s stance "isn't surprising." He said, "Whether or not it's about ratings or sponsors pulling out or owners attempting to put their foot down, the message is just loud and clear. ‘We're here for business, we're here to make money, and this is getting in the way.’ It's no surprise, and it really should be listened to” (“First Take,” ESPN, 11/1).
TWITTER WEIGHS IN: Twitter users quickly waded into the controversy. Daddi Brand Communications' Tim Baysinger: "Do I think Papa Johns suffered because they're an NFL sponsor? No. But that narrative that PJ and others may use is very troubling for NFL." Bleacher Report's Mike Freeman: "It’s possible Papa John’s, in trashing Goodell, is doing the dirty work of Jerry Jones." The Nation's Dave Zirin: "A whole bunch of us are now boycotting Sal's Pizza 2.0 aka @PapaJohns." ESPN's Jemele Hill: "Sorry racial injustice couldn’t be ended as easily as adding an extra topping and a side of ranch." Former NFLer Adewale Ogunleye: "Blaming the NFL for poor sells ... haha ... then stop letting Peyton make your pies" (TWITTER.com, 11/1).
LAUNDRY LIST: AD AGE's Wohl & Stein reported Papa John's has selected Wasserman-owned social media agency Laundry Service as its new creative agency "following a non-traditional review process that began late this summer." Papa John's CMO Brandon Rhoten has said that he wants Papa John's, the nation's fourth-largest pizza chain, to "stand out in what has become a commoditized pizza category." Laundry Service starts Jan. 1. Details of upcoming campaigns were "not shared." But Rhoten said that Schnatter will "most likely continue to appear in the work." Wohl & Stein noted Papa John's is currently "busy with the end" of the MLB season and the ongoing NFL season as a "sponsor of both leagues." Rhoten said of declining NFL ratings this season, "Ratings impact everything we do." He added that the NFL has been a "good partner for the brand in the past." Still, the chain has "started to shift some of its marketing to make sure it's connecting with people in the right place at the right time, such as Twitter, Facebook, Instagram, Snapchat and elsewhere." Rhoten also was "quick to add that Papa John's will continue to spend time and effort with the NFL, MLB and anyone 'with significant reach.'" Wohl & Stein note for Laundry Service, the decision comes a "few weeks after it signed a deal with ESPN to collaborate on branded digital content and original programming" for the net's advertisers (ADAGE.com, 10/31).
