A-B InBev Will Look To Renegotiate Sponsorships Amid Sports Shutdown

A-B InBev will "attempt to renegotiate some commercial contracts, including sponsorships" with sports leagues, after reporting that “global volume in April plummeted 32 percent, mostly driven by bar and restaurant closings and government restrictions that affected its operations in some markets,” according to E.J. Schultz of AD AGE. The brewer sponsors the NBA, MLB and NHL, which have "all indefinitely halted their seasons," while "uncertainty remains" around the NFL. That league, also sponsored by A-B InBev, "accounts for a major share of Bud Light spending in the fall and winter." The attempt to rework contracts comes as A-B InBev CEO Carlos Brito said the brewer would "curb media spend" in the U.S. (ADAGE.com, 5/7). Brito said, "If the season is delayed it doesn’t make sense to spend money now, and if there will be no season we are not going to spend any money. We will have to see how we do with the contract terms -- what we are trying to do is find solutions that are win-win for the leagues" (FINANCIAL TIMES, 5/7).