- Pepsi holds the sponsorship rights to the Super Bowl halftime show in a deal that expires after 2022.
- One expert estimates the value of halftime shows for the National Football League to be between $25 million and $50 million per year.
The 2021 professional football season is just over 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, although the deal is set to expire after the 2022 game which marks the end of the current season. The NFL now plans to take future sponsorship rights to the open market, according to people familiar with the matter, who asked not to be named because the talks are private.
Pepsi acquired the rights to the show in 2012 as part of a more substantial marketing deal valued at over $2 billion. wall street journal. Prior to this, auto parts manufacturer Bridgestone held the rights to the show and paid up to $10 million annually.
Pepsi could still renew its deal with the league, but the NFL could also choose to create halftime shows and sell the assets separately, the people said.
The NFL declined to comment for this story.
Pepsi will continue to sponsor the February Games in Los Angeles, featuring Dr. Dre, Snoop Dogg, Mary J. Blige, Kendrick Lamar and Eminem will join the cast. The NFL partners with Jay-Z’s Rock Nation to produce the show. The 2022 Super Bowl airs on NBC, which is owned by CNBC parent company Comcast.
The value of halftime shows can range from $25 million to $50 million, one marketing expert estimates, using industry metrics. It takes into account what Bridgestone last paid for the rights, as well as an evolving media landscape that factors in social media impressions.
Making accurate estimates is a challenge. NBC charged $6.5 million for a 30-second ad slot for the upcoming Super Bowl LVI in 2022. Applying that figure to a 12-minute halftime show would assume an advertising value in the range of $150 million. But it’s unlikely a company would pay that much every year just for halftime performance.
The Super Bowl halftime rights package typically includes ancillary programming during the NFL season, commercial spots during the Super Bowl, exclusive access to artists for content, and other NFL branding leading up to the game.
Wherever it lands, the price will prosper, because marketers get a bigger audience when they invest in the Super Bowl. The 2021 game for the Tampa Bay Buccaneers vs Kansas City Chiefs matchup averaged 96.4 million viewers (including streaming). NBC last aired the Super Bowl in 2018, drawing over 100 million viewers.
“Nothing reaches half the market in households and demographics [other] Compared to the Super Bowl,” said Tony Ponturo, who was Anheuser-Busch’s vice president of global media sports and entertainment marketing. “Some young, new tech company that wants to make a splash and has the resources to do so” should bid for the rights when they go to market, he said.
While discussing Super Bowl rights with CNBC on Wednesday, Ponturo spoke about Apple’s 1984 . used super bowl commercial As an example of how new tech companies can “shake the boat” by using the NFL’s top game.
“If you didn’t know who Apple was in 1984, you now know who Apple was,” Ponturo said. “It was Steve Jobs’ way of making a big splash.”
Given the game’s global appeal and the inclusion of artists from outside the US at halftime shows, the sponsor may have come from any other country, including Germany, where the NFL wants to grow. When asked about brands that could potentially be a good fit, Ponturo mentioned electric car maker Lucid Motors.
“I think one in 100 auto customers even knows who Lucid is,” Ponturo said. “So if they need brand awareness and not people on Wall Street or auto aficionados to know who they are, I can see a company doing that.”
Ponturo called it “instant brand awareness” and despite the high price tag, “one would argue it’s worth it,” he said.
Lucid did not immediately respond to a request for comment.
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