US: Gatorade renews NFL deal for $500m
Gatorade has renewed its contract with the National Football League at a value of more than US$500m. The new contract will see the partnership extend to the 2011 season. Gatorade has been the official sports beverage of the league since 1983.
The agreement, announced yesterday, comes three weeks after the Super Bowl half-time show histrionics, which led Gatorade's parent company PepsiCo to threaten to pull its advertising from next year's final.
The agreement, according to a source familiar to the situation, will see Gatorade pay the NFL a rights fee of around $46m a year, and includes a marketing commitment of about $16m a year and roughly $1m in free products, for a total of over $500m. In return, Gatorade will continue to hold exclusive rights to all NFL training camps, practices and sidelines during games. The beverage company will also continue to have exclusive rights to all league assets, including use of the NFL shield logo, Super Bowl, Pro Bowl and collective and individual use of the 32 NFL team marks.
The previous six-year agreement between the two was worth about $125m in rights fees, advertising spending and marketing.
Sectors: Soft drinks
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