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Thursday, September 18, 2014

Pepsi starting war with NFL?

At this point even Roger Goodell must be questioning the very God who somehow deemed him worthy of being paid $44 million to sit at the head of the most powerful non-profit organization not based in Vatican City.
The NFL's day started with the Minnesota Viking's 12:47am announcement that Adrian Peterson had been placed on something called the Exempt Commissioner's Permission list. Peterson was later joined on the list by Carolina Panther’s lineman Greg Hardy as he appeals his July conviction on charges of assaulting and threatening to kill his girlfriend.
Don’t weep for Peterson and Hardy. Per the previously obscure terms of the ECP List players are paid their full salaries provided they do anything other than show up for work. That means Peterson and Hardy will collect a combined $24.87 million to stay home and spend time with their families.Hours later Arizona Cardinal running back Jonathan Dwyer was arrested on domestic abuse charges.
None of this is sitting well with sponsors. Pepsi is the latest company to express concern in the form of a letter of quasi-support from CEO Indra Nooyi. In her letter Nooyi acknowledged that a cloud has fallen over the integrity of the league but expressed guarded confidence that the commissioner will do the right thing “immediately.”
Don’t underestimated just how conditional her support is and how much is at stake for the NFL in this. In 2012 Pepsi signed a 10-year deal worth an estimated $2.3 billion that makes the company’s suite of products everything from the official softdrink to chip and Oatmeal of the NFL. That deal is only with the league. Nooyi may say she likes Goodell as a person but she’ll throw him into an oil drum next to Jimmy Hoffa when push comes to shove.
In 2002 when Pepsi stole the right to be the official beverage of the NFL the league’s then VP of corporate sponsorships welcomed them by telling the Wall Street Journal the league “didn’t have a lot to lose either way.” It would seem that control dynamic is changing.
The League is the Rose of Tralee of sponsorship deals. It’s got so many partners it has a hard time even keeping their names straight. Microsoft is paying $80 million a year to make the Surface the office tablet of the league and the announcers on Monday Night Football called them iPads repeatedly in week one.
Coors (not Bud) is the official beer of the NFL. They’re paying a reported $300 million over 5 years and are completely overshadowed by Bud’s Super Bowl ads. Motorola is paying the league more than $20 million a year to be the official… something... but the NFL still signed a deal with Verizon to stream games. Most of the sponsors paying the NFL nearly $10 billion a year in fees are doing so just to be associated with the Shield and right now that’s the last thing any of them want.
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The real issue facing the league is whether or not associating with the league has ever been worth it. Last year Super Bowl ads went for $8 million for 60 seconds. The surprise winner of the night was RadioShack with it’s memorable “The 80s want their store back” campaign. 8 months later the chain is down to its $25 million and facing bankruptcy.
The NFL is a terrible partner. It's a sham. Goodell isn't the problem, or at least he wouldn't be, except for his declaring himself the moral enforcer years ago.
The ratings being up doesn't matter. Goodell will be gone before October 1st. Why then? Because that's the beginning of Breast Cancer Awareness month during which players on all teams will wear pink on their uniforms.
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As calculated by Business Insider 5% of the proceeds from merchandise sold goes to fighting breast cancer. Not even Goodell can survive running a league seen as soft on domestic violence and presiding over a scam charity drive designed to sell jerseys

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