HomeBusinessNFL taking Super Bowl halftime rights to market as Pepsi deal expires

NFL taking Super Bowl halftime rights to market as Pepsi deal expires

Jennifer Lopez performs onstage through the Pepsi Tremendous Bowl LIV Halftime Present at Laborious 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 previous, 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 sport that marks the tip of the present season. The NFL is now planning to take future sponsorship rights to the open market, in line with folks conversant in 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 line with the Wall Road Journal. Earlier than that, auto elements producer Bridgestone held the present’s rights and paid as much as $10 million yearly. 

Pepsi may nonetheless renew its cope with the league, however the NFL may additionally 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 sport 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 mother or father firm Comcast.

The worth of the halftime present may 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. But it surely’s unlikely an organization would pay that a lot yearly only for the halftime efficiency.

A Tremendous Bowl halftime rights bundle often consists of ancillary programming through the NFL season, business 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 value can be wealthy, as entrepreneurs get an enormous viewers after they spend money on the Tremendous Bowl. The 2021 sport 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 houses 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 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.

‘On the spot model consciousness’

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

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

Given the sport’s international enchantment and the halftime present’s inclusion of artists from exterior the U.S., the sponsor may come from one other nation, together with Germany, the place the NFL desires to develop. Requested about manufacturers that would doubtlessly be a superb match, Ponturo talked about electrical automobile maker Lucid Motors.

“I might guess one out of 100 auto clients 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 Road or auto aficionados to know who they’re, I can see an organization like that doing it.”

Ponturo referred to as it “immediate 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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