Pepsi is keeping its sponsorship rights with the NFL but will give up a core asset – the Super Bowl halftime show, reports CNBC.
The soda-and-snacks company officially renewed its nearly four-decade partnership with the league Tuesday after the NFL's spring meeting in Atlanta. Team owners voted to ratify the renewal, which allows Pepsi to use NFL premium rights for its brands, including Frito Lay and Tostitos.
As part of the agreement, Pepsi gets pouring rights at top NFL events, including the NFL Draft. The company's sports drink maker, Gatorade, keeps its high visibility on NFL sidelines. In addition, Pepsi and the NFL are teaming up to unveil a Gatorade pre-workout product for players this fall. The line is expected to be available for consumers in 2023.
The terms of Pepsi's renewal were undisclosed. The previous deal was reportedly worth $2 billion over 10 years.
"Our priorities and their priorities have evolved, and we wanted to make sure that as we continue this partnership that we're all working toward the same goal," Tracie Rodburg, the NFL's senior vice president of sponsorship management, told CNBC.
This time, though, Pepsi won't be sponsoring the Super Bowl halftime show. It's the second time since 2012 that these rights hit the marketplace. Auto parts manufacturer Bridgestone held the Super Bowl Halftime rights before Pepsi.
The 2022 Super Bowl Halftime Show featured iconic hip-hop stars Dr. Dre and Snoop Dogg. The NFL partners with Jay-Z's Roc Nation to produce the halftime show.
As part of larger deals with pro leagues, companies also commit a portion of the total money toward buying TV ads. For the 2021 season, Pepsi spent roughly $114 million on NFL games, including the playoffs. That's down from approximately $127 million for the 2020 NFL season, according to media measurement company iSpot. Pepsi also has 15 team deals with NFL clubs including the Dallas Cowboys.
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