When Pepsi’s contract expires, the NFL puts Super Bowl half-time rights on the market.

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Jennifer Lopez will perform on stage at the Pepsi Super Bowl LIV Halftime Show at Hard Rock Stadium on February 2, 2020 in Miami, Florida.

Robin Alam | Icon Sportswire | Getty Images

The 2021 professional football season is more than a month old and the NFL is already preparing for the 2023 Super Bowl.

The National Football League’s Super Bowl halftime show is sponsored by Pepsi, but the deal will expire after the 2022 match, which marks the end of the season. The NFL is currently planning to acquire future sponsorship to the open market, according to people familiar with the issue that asked them not to be named because the negotiations were private.

According to The Wall Street Journal, Pepsi acquired the rights to the show in 2012 as part of a more important marketing transaction worth over $ 2 billion. Prior to that, auto parts maker Bridgestone held the rights to the show and paid up to $ 10 million annually.

People said Pepsi could still renew its contract with the league, but the NFL might also choose to open a halftime show and sell its assets separately.

The NFL declined to comment on the story.

Pepsi will continue to sponsor the February game in Los Angeles, along with performers such as Dr. Dre, Snoop Dogg, Mary J. Blige, Kendrick Lamar and Eminem. The NFL has partnered with Jay-Z’s Roc Nation to produce the show. The 2022 Super Bowl will air on NBC, owned by CNBC’s parent company Comcast.

Using industry metrics, one marketing expert can value halftime shows in the range of $ 25 million to $ 50 million. This takes into account the amount Bridgestone last paid for the rights and the evolving media situation that takes into account the impression of social media.

Getting an accurate quote is a challenge. NBC has charged $ 6.5 million for a 30-second advertising slot in the Super Bowl LVI scheduled for 2022. Applying this number to a 12-minute halftime show, we expect an advertising value in the $ 150 million range. However, it is unlikely that a company will pay so much each year just for half-time performance.

The Super Bowl half-time rights package typically includes ancillary programming during the NFL season, commercial spots in the Super Bowl, exclusive access to performers for content up to the game and other NFL branding. Will be.

A pre-match overview of the Tampa Bay Buccaneers and Kansas City Chiefs at the Super Bowl LV at Raymond James Stadium on February 7, 2021 in Tampa, Florida.

Kevin C. Cox | Getty Images

Investing in the Super Bowl attracts marketers to a large audience, so prices are high no matter where you land. The 2021 game had an average of 96.4 million viewers (including streaming) in the Tampa Bay Buccaneers vs. Kansas City Chiefs match. NBC last aired the Super Bowl in 2018, attracting more than 100 million viewers.

“Nothing reaches half the housing and demographic market [other]“It’s better than the Super Bowl,” said Tony Ponturo, vice president of global media sports and entertainment marketing at Anheuser-Busch. He added because of the right if they went on the market.

“Instant brand awareness”

In discussing Super Bowl rights with CNBC on Wednesday, Ponturo used Apple’s 1984 Super Bowl commercial as an example of how a new tech company could “rock the boat” using NFL’s top games. ..

“If you didn’t know who Apple was in 1984, you now knew who Apple was,” Ponturo said. “It was a way to make a big splash for Steve Jobs.”

Given the global appeal of the game and the participation of non-US artists in halftime shows, sponsors may come from other countries, including Germany, where the NFL wants to grow. Asked about potential brands, Ponturo mentioned electric car maker Lucid Motors.

“I think one in 100 car customers even knows who Lucido is,” Ponturo said. “So if they need brand awareness and want to make a big splash for people other than Wall Street and car enthusiasts to know who they are, I would say such a company does it. You can see it. “

Ponturo calls it “immediate brand awareness,” and despite the high prices, “I would argue that it’s worth it,” he said.

Lucid did not immediately respond to the request for comment.

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When Pepsi’s contract expires, the NFL puts Super Bowl half-time rights on the market

Source link When Pepsi’s contract expires, the NFL puts Super Bowl half-time rights on the market

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