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?
Let’s hear it, football fans and marketers. What say you?
Categories:Licensing, Consumer Products, Entertainment