Apple is the next sponsor of the Super Bowl halftime show.
The National Football League announced a new partnership with Apple late Thursday that includes the rights to the 12-minute show, one of the music industry’s biggest annual events. The tech giant (Nasdaq: AAPL) pays nearly $50 million annually over five years, according to a person familiar with the terms, who was granted anonymity because the details are private.
Apple takes over from Pepsi, which refused to renew the half-time deal after a decade serving as the show’s sponsor. The news comes as the NFL continues to purchase the Sunday Ticket broadcast product, with Apple being one of the primary providers.
An NFL representative declined to comment on the terms. An Apple representative did not immediately respond to an email requesting comment after business hours.
“We couldn’t think of a partner more suited to the world’s most watched musical performance than Apple Music, a service that entertains, inspires, and motivates millions of people around the world through the intersection of music and technology,” said Nana Yao Asamoah, senior vice president of partner strategy for the NFL. In a statement.
The annual fee of about $50 million is in line with what the NFL was looking for when it started buying the rights. It’s not clear what Pepsi has paid over its 10 years with the rights (the company remains a league partner out of the show break). Ameriquest Mortgage Co. paid $15 million in 2005 to sponsor the halftime show after the infamous performances of Janet Jackson and Justin Timberlake. Bridgestone paid nearly $10 million a year ahead of Pepsi.
Apple rights this season will begin at the February 12 Super Bowl in Arizona. The halftime rule has not been announced. Recent shows have included The Weeknd, Beyonce, Lady Gaga, Dr. Dre and Eminem.
The show, which one marketing expert described as an “inside-out scene,” benefits from eyeballs drawn to the game, as well as interest from non-football fans. According to the NFL, the performance earlier this year drew more than 120 million viewers.
The league entered 2022 with more than 30 league-level sponsors, a group that includes Pepsi (NASDAQ: PEP), Intel (NASDAQ: INTC), Anheuser-Busch (NYSE: BUD), Lowe’s (NYSE: LOW), and Microsoft. (NASDAQ: MSFT).
The NFL is the richest sports league in the world, and its business continues to grow. Last season, the league’s national revenue — from media, sponsorship and other revenue — topped $11 billion for the first time ever. And that’s before new broadcast deals worth $105 billion from the NFL begin next season.
Each team received a $345 million check as part of that national revenue. This stake is expected to reach $400 million when new media deals begin.