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NFL taking Tremendous Bowl halftime sponsorship rights to market as cope with Pepsi set to run out

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

Robin Alam | Icon Sportswire | Getty Photos

The 2021 skilled soccer season is simply over a month outdated, and the NFL is already getting ready for the 2023 Tremendous Bowl.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 response to folks accustomed to the matter who requested to not be named as a result of the negotiations are personal.

Pepsi obtained the present’s rights in 2012 as a part of a extra vital advertising deal valued at over $2 billion, in response to 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 can also select to carve out the halftime present and promote the asset individually, the folks 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 provide the present. The 2022 Tremendous Bowl airs on NBC, which is owned by CNBC father or mother firm Comcast.

The worth of the halftime present might vary from $25 million to $50 million, one advertising professional estimated, utilizing business 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. Nevertheless it’s unlikely an organization would pay that a lot yearly only for the halftime efficiency.

A Tremendous Bowl halftime rights package deal normally 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.

Basic 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 Photos

Wherever it lands, the worth could be wealthy, as entrepreneurs get an enormous viewers after they put money into the Tremendous Bowl. The 2021 recreation averaged 96.four 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 international media sports activities and leisure advertising. “Some youthful, new tech firm that desires to make a splash and has the sources 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 instance of how newer tech corporations can “rock the boat” utilizing the NFL’s prime recreation.

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

Given the sport’s international enchantment and the halftime present’s inclusion of artists from outdoors 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 would doubtlessly be a great match, Ponturo talked about electrical automotive maker Lucid Motors.

“I might 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 folks not on Wall Avenue or auto aficionados to know who they’re, I can see an organization like that doing it.”

Ponturo known as it “instantaneous model consciousness” and, regardless of the excessive price ticket, “one would argue it is price it,” he mentioned.

Lucid did not instantly reply to a request for remark.

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