On Monday, Pepsi announced that it had signed a multi-year, North American partnership deal with the National Basketball Association, replacing Coca-Cola in the process, which held the sponsorship for 28 years.
The new agreement includes the WNBA, NBA Development League and USA Basketball. Pepsi’s Chinese partner Tingyi will become the official sponsor for the NBA in China. In addition, PepsiCo also has sponsorship links with the National Football League, Major League Baseball and the National Hockey League.
This is a huge achievement for PepsiCo, which has already built a strong network through its various sports partnerships and the recent deal expands the company’s major league sports presence.
The deal will also be extremely beneficial to PepsiCo, since it will now have guaranteed turnout of at least 18 million fans of NBA. Likewise, its commercials will also be favored to other advertisements.
Being the official partner of NBA also means that PepsiCo will now be the prime prospect for partnering for both teams and players alike. Although they can still approach other brands, like Coca-Cola, Pepsi’s chances of making such deals are now notably higher than its rivals.
While Mountain Dew will be the major product of the campaign, other products like bottled water Aquafina, Lipton Brisk will also be a part. Other products including Doritos and Ruffle will join Gatorade, another PepsiCo brand (which has been associated with the NBA since 1984) as the official food and beverage brands beginning next season in North America.
As majority of the stadiums have their own separate arrangements with the brands, the deal will not influence the products which are being sold in them.
The financial aspects of the deal have not been disclosed as yet, however reports state that it is more than the one made with Coca Cola.
NBA Commissioner, Adam Silver, said that they are fortunate to be working along with a company like PepsiCo, which is well known for its association with various sports. He further expressed his willingness to immediately start working with the company, stating that a brand like PepsiCo offers limitless prospects of partnership.
Meanwhile, Coca Cola said that they still are a big fan of NBA, and they have decided not to extend their agreement with the league. However, it elucidated that they will continue to be a part of basketball through their deals with the players and their teams.