To put it simply, the NFL is a money printing business. Sports leagues such as the NBA, MLB, and EPL also take in billions annually; however, their revenues are nothing compared to that of the National Football League. The total amount made by the league and its teams has been on the rise for over a decade. This is majorly thanks to the large corporations that pump millions into the league each year through sponsorship deals.
In 2021, the sponsorship spending on the league has risen to a whopping $1.62 billion. With the competition for the chance to sponsor the league as hot as ever, some major corporations made fantastic offers this year. In this article, we will be looking at why sponsors are interested in investing so much. We will also be taking a look at 5 of the biggest deals in the 2021 season.
Why Are Sponsorship Deals So Expensive?
Brands have been into sports sponsorship since the 19th century and the prices of the deals have continued to increase ever since. Today, sponsors pay huge amounts to the NFL just to have their adverts displayed on the big screens and other areas around the stadiums. Though these adverts get the attention of thousands of fans in the stadium, they are not the primary target.
The main target of the adverts is the millions of people watching at home from all corners of the world. During the previous season, the average number of fans that watched an NFL regular-season game on TV was about 14.9 million. This makes the NFL the most-watched sport in the US by a distance. In 2020, the list of the most viewed sporting events in the country was dominated by NFL games. So, the fact that the NFL raises more revenue from its sponsors than the NBA and MLB shouldn’t be a surprise.
The Biggest Deal in the 2021 Season
Though the NFL has 41 league-level sponsors in the new season, we will be taking a look at those who gave more in this section.
The NFL recently announced a blockbuster deal with Verizon that sees the network company become the official 5G partner of the league. Though both organizations have been working together for a decade, the new deal is worth around $1 billion and will last for another decade. During this period, Verizon hopes to show how 5G interactive technology can improve the experience of fans in stadiums. The company will also be providing teams with on-field data and gathering crowd information. There are now 5G Ultra Widebands in 25 NFL stadiums.
2. Caesars, Draftkings, and FanDuel
The NFL wasn’t known to associate with sports betting in the past. However, the league announced deals worth about $1 billion with three sports betting companies. Caesars, Draftkings, and FanDuel now have the right to use the logo of NFL companies and team insignia. The deal also allows the companies to engage fans via NFL-inspired games.
Additionally, the league’s casino sponsors show the great potential of the US gambling industry. So, punters should be assured that they can sagely in £10 deposit casino sites. Whether you gamble in an online casino or betting site, you are guaranteed to have a great time.
3. Anheuser-Busch InBev
AB InBev is the second corporation on our list of the biggest NFL sponsors. It is the world’s largest brewer and its list of global beer brands consists of popular names like Budweiser, Becks, Leffe, Stella Artois, and Corona. The organization’s sponsorship deal with the National Football League is worth $230 million annually and expires in 2022.
Additionally, Bud Light serves as the official beer of the NFL. Thanks to its partnership with the league, Anheuser-Busch has the right to advertise with the logos of all teams in the league.
When it comes to sports, very few names are more popular than Nike in the world. The global brand extended its partnership with the league by eight years in 2019. Nike pays $120 million annually for the rights to provide the kits used by all teams in the league.
Additionally, Nike is allowed to design gear for the players that have individual contracts with the brand. We would like to note that Nike is also the official kit maker of the National Basketball Association (NBA) and Major League Baseball (MLB).
Pepsi took the position of the official soft drink of the NFL from Coca-Cola about two decades ago and has held on to it ever since. Thanks to this long-term deal, Pepsi has been able to advertise all its brands with the league’s logo and branding. Interestingly, Pepsi was handed the branding rights of the Super Bowl in 2019 when the event returned to Atlanta — the home of coke.
There is no doubt that the National Football League had the greatest pull when compared to others in the States. The league has taken full advantage of its popularity and landed some huge deals ahead of the 2021 season. We have mentioned the biggest of these deals in our NFL sponsorship list.