Coors Light will remain the “Official Beer Sponsor” of the National Football League through 2010 under a new five- year deal announced Tuesday.
The deal is reportedly worth $500 million and will kick in after the upcoming NFL season. That’s when Golden-based Coors Brewing Co.’s current sponsorship agreement with the league expires.
Coors Brewing, the nation’s No. 3 brewer and a subsidiary of Molson Coors Brewing Co., became the NFL’s official beer sponsor in early 2002 after signing a five-year, $300-million deal. The NFL exercised an option in that deal that allowed it to sign a new agreement after the fourth year.
“The NFL is the single greatest sports property in the world, and we are extremely pleased to remain associated with it – particularly in light of the intense competition for the beer category sponsorship,” said Coors Brewing chief executive Frits van Paasschen in a statement.
Although financial terms weren’t disclosed, Sports Business Journal reported that the deal was worth $500 million. Coors Brewing’s payments will rise by $40 million a year compared with the previous contract. Even so, the investment is “worthwhile,” said Denver sports consultant Dean Bonham.
“The NFL is a sports property without parallel,” Bonham said. “I’m not surprised that the price went up that much.”
NFL spokesman Brian McCarthy said the league received “deep interest from a number of brewing companies.”
Among them was Anheuser-Busch, the country’s No. 1 brewer and the NFL’s long-time sponsor prior to Coors Brewing’s 2002 deal.
“We’re disappointed that the NFL chose to go in a different direction,” said Tony Ponturo, vice president of global media and sports marketing for Anheuser-Busch.
Even without an NFL deal, Anheuser-Busch and other beer companies are allowed to sign sponsorship deals with individual teams.
Anheuser-Busch has sponsorship deals with 28 of the 32 NFL teams, including the Denver Broncos. The brewer, maker of Budweiser and Bud Light, will also be the official sponsor of the Super Bowl for the 18th consecutive season.
Coors Brewing’s new NFL deal will give it “greater access to, and involvement with, local NFL teams,” the company said. In addition to the deal, Coors Brewing has sponsorship agreements with the Broncos and four other teams.
Coors Brewing and the NFL also said Tuesday that it will create marketing programs targeted directly at Hispanic consumers.
The first NFL regular-season game outside the United States will be Oct. 2, when the Arizona Cardinals face the San Francisco 49ers in Mexico City.
Staff writer Andy Vuong can be reached at 303-820-1209 or avuong@denverpost.com.
