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NFL taking Super Bowl halftime sponsorship rights to market as deal with Pepsi set to expire

Jennifer Lopez performs onstage through the Pepsi Tremendous Bowl LIV Halftime Present at Arduous Rock Stadium on February 02, 2020 in Miami, Florida.

Robin Alam | Icon Sportswire | Getty Photographs

The 2021 skilled soccer season is simply over a month outdated, and the NFL is already making ready for the 2023 Tremendous Bowl.

The Nationwide Soccer League’s Tremendous Bowl halftime present is sponsored by Pepsi, although the deal is about to run out after the 2022 recreation that marks the top of the present season. The NFL is now planning to take future sponsorship rights to the open market, in line with individuals aware of the matter who requested to not be named as a result of the negotiations are non-public.

Pepsi obtained the present’s rights in 2012 as a part of a extra vital advertising and marketing deal valued at over $2 billion, in line with the Wall Street Journal. Earlier than that, auto components producer Bridgestone held the present’s rights and paid as much as $10 million yearly. 

Pepsi might nonetheless renew its cope with the league, however the NFL might also select to carve out the halftime present and promote the asset individually, the individuals mentioned.

The NFL declined to remark for this story.

Pepsi will stay the sponsor of February’s recreation in Los Angeles, with performers together with Dr. Dre, Snoop Dogg, Mary J. Blige, Kendrick Lamar, and Eminem. The NFL companions with Jay-Z’s Roc Nation to supply the present. The 2022 Tremendous Bowl airs on NBC, which is owned by CNBC dad or mum firm Comcast.

The worth of the halftime present might vary from $25 million to $50 million, one advertising and marketing knowledgeable estimated, utilizing trade metrics. That takes into consideration what Bridgestone final paid for the rights together with an evolving media panorama that components in social media impressions.

Arising with a exact estimate is a problem. NBC charged $6.5 million for 30-second advert slots for the upcoming Tremendous Bowl LVI in 2022. Making use of that determine to a 12-minute halftime present would assume an advert worth within the $150 million vary. However it’s unlikely an organization would pay that a lot yearly only for the halftime efficiency.

A Tremendous Bowl halftime rights package deal often consists of ancillary programming through the NFL season, industrial spots through the Tremendous Bowl, unique entry to performers for content material and different NFL branding main as much as the sport.

Normal view previous to the sport between the Tampa Bay Buccaneers and the Kansas Metropolis Chiefs in Tremendous Bowl LV at Raymond James Stadium on February 07, 2021 in Tampa, Florida.

Kevin C. Cox | Getty Photographs

Wherever it lands, the worth could be wealthy, as entrepreneurs get an enormous viewers once they spend money on the Tremendous Bowl. The 2021 recreation averaged 96.4 million viewers (together with streaming) for the Tampa Bay Buccaneers vs. Kansas Metropolis Chiefs matchup. NBC final aired the Tremendous Bowl in 2018, drawing over 100 million viewers.

“Nothing reaches half {the marketplace} in properties and demographics [other] than the Tremendous Bowl,” mentioned Tony Ponturo, who was vp of Anheuser-Busch world media sports activities and leisure advertising and marketing. “Some youthful, new tech firm that wishes to make a splash and has the assets to do it” ought to make a bid for the rights ought to they go to market, he added.

‘Prompt model consciousness’

In discussing Tremendous Bowl rights with CNBC on Wednesday, Ponturo used Apple’s 1984 Super Bowl commercial for example of how newer tech firms can “rock the boat” utilizing the NFL’s high recreation.

“For those who did not know who Apple was in 1984, you now knew who Apple was,” Ponturo mentioned. “It was Steve Jobs’ manner of constructing an enormous splash.”

Given the sport’s world attraction and the halftime present’s inclusion of artists from exterior the U.S., the sponsor might come from one other nation, together with Germany, the place the NFL wants to grow. Requested about manufacturers that might doubtlessly be a superb match, Ponturo talked about electrical automotive maker Lucid Motors.

“I’d guess one out of 100 auto prospects know who Lucid even is,” Ponturo mentioned. “So in the event that they want model consciousness and wish to make an enormous splash to individuals not on Wall Avenue or auto aficionados to know who they’re, I can see an organization like that doing it.”

Ponturo referred to as it “prompt model consciousness” and, regardless of the excessive price ticket, “one would argue it is value it,” he mentioned.

Lucid did not instantly reply to a request for remark.

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