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The NFL Kicks Off This Weekend! Are You Ready for Some... Pepsi?

September 9, 2011 at 1:06 pm by Ted Mininni

According to The Wall Street Journal, the NFL and PepsiCo have extended their sponsorship deal through the 2022 playoff season; a deal that could be worth a cool $2.3 billion. If so, the deal is one of the largest in U.S. sports history. Talk about exorbitant marketing costs!

Translation: PepsiCo brands: Pepsi, Frito-Lay, Tropicana and Quaker Oats, as marketing partners of the NFL, will shell out close to $100 million per year… and let’s not forget Gatorade. The deal ensures the sports drink will continue to flow on the sidelines as well as being dumped on less than wary coaches at the end of games. And, yes, it’s a big deal in more ways than one. Gatorade along with Motorola (coaches’ headsets) are the only two brands allowed on official NFL gridirons.

$100 million per season buys a lot of impressions (exposure) in front of millions of fans; after all, NFL football continues to be the #1 pro sport in America due to the size of its audience. In PepsiCo’s eyes, well worth the spend… the company noted the massive international audience for the Super Bowl alone in the WSJ article.

As far as the NFL is concerned, major sponsorships are an important revenue stream.

And lockout or not, I doubt the league has skipped a beat. I expect millions of rabid fans – yours truly included – to be back in the stadiums and in front of our TVs for another great season of games and memorable moments to be discussed with friends and savored long after they’re over.

The thing is, had the lockout not ended before regular season kick-off, would PepsiCo had dug as deeply into its corporate pockets? Not to mention GM and a slew of other notable sponsors? Unlikely. But then, they would have had to hedge their bets that a partial season, at least, could be salvaged… not to mention future seasons. So who knows?

  • ARE you ready for some football and glad that the NFL season is on?
  • Do you pay attention to the ads during games? Or just during the Super Bowl?
  • Are you more likely to gravitate to the brands that sponsor the NFL or not?
  • What do you think of the capital outlay on some of these sponsorship deals? Too hefty?

Let’s hear it, football fans and marketers. What say you?


Categories:

Licensing, Consumer Products, Entertainment

Comments :

Lou LambertSeptember 14, 2011 3:34 PM

Good blog Ted! I didn't realize the monopoly that Gatorade & Motorola have on the NFL sidelines. As far as the capital outlay those figures are tuff nutz but then so are the naming rights to stadiums across the nation. Those 'impressions' must be worth it to most because they either keep coming back for more or sign long term. I do watch the commercials, but then I am a marketer. Luv the E-Trade baby & the brand name is household BUT it's never moved me to use the service....
Keep up the good work!

Ted MininniSeptember 14, 2011 3:59 PM

Thanks so much, Lou! I appreciate your chiming in over here as well. Yes, the numbers are absolutely staggering. The ROI had better be there. I enjoy watch the commercials as well, and can’t help but evaluate them from a marketing and design perspective. Funny thing: I can’t recall seeing any TV advertising for the PepsiCo brands while watching the Eagles game this past Sunday. But, I do remember the ads for the new FIAT 500 (catchy tune with heavy focus on glorifying the cool vehicle design). And, for some reason, the GoDaddy.com commercials with Danica Patrick always stick with me!