Pizza Hut takes the field as rival bows out
Papa John’s exit means opportunity for Yum Brands
Pizza Hut will take over the NFL pizza-sponsorship deal abandoned by Papa John’s International, betting that it can revive its allure by teaming up with the increasingly controversial league.
Pizza Hut’s multiyear deal gives it collective use of all 32 teams logos, and the NFL will work closely with the chain on local team partnerships, according to a joint statement Wednesday.
Papa John’s — unhappy over declining ratings and the handling of players’ national anthem protests — said Tuesday it was ending its deal across the whole league that had been in place since 2010, and would focus on marketing with 22 specific teams. The opening provides an opportunity for Pizza Hut’s parent, Yum Brands, which has sought to burnish the pizza chain’s image after years of sluggish sales.
“The capacity for what’s possible is endless, and that’s going to make this league partnership great fun for Pizza Hut, the NFL and everyone who loves pizza and football,” said Artie Starrs, Pizza Hut’s U.S. president. NFL Commissioner Roger Goodell said the league is “thrilled to have Pizza Hut.”
The NFL’s relationship with Papa John’s had been strained since the chain’s founder John Schnatter slammed the league in November, saying that declining ratings had hurt sales. He also said Goodell mishandled a controversy over NFL players kneeling during the national anthem.
The league will get more money from Pizza Hut under the terms of the four-year deal than it got from Papa John’s, Sports-Business Daily reported.
The NFL remains the mostwatched sports league in the U.S., and one of the few places were marketers can be sure to reach tens of millions of Americans.
The league and its 32 teams made $1.3 billion in sponsorship revenue last season, according to ESP research, up from $1.07 billion five years ago.
But there are risks. The anthem kneeling, part of a broader commentary on race relations in the U.S., drew criticism from President Donald Trump, and the fallout angered fans on both sides of the political sphere. Growing awareness over the physical dangers of the sport, including concussions, have led to decreased participation at the younger levels, and other major leagues like the NBA have used progressive leadership to claw into NFL market share.