The National Football League and Apple were negotiating broadcast rights for the NFL Sunday Ticket. The parties dragged out negotiations as the NFL wanted $2.5 billion from the deal, $1 billion more than it has from current provider DirecTV. In the meantime, the NFL and Apple were able to agree to cooperate on another issue.
As consumers move away from traditional television packages, the NFL has sought to expand its reach into digital media. The possibility of entering into an agreement was negotiated with Google, Amazon and ESPN, and the most extensive negotiations were with Apple. But due to the high appetites of the NFL, it has not yet been possible to agree.
Nevertheless, it became known that Apple agreed to become the main sponsor of the Super Bowl halftime music show. The parties did not disclose the terms of the deal. But the NFL wanted about $50 million, according to three people with knowledge of the talks. Apparently, the Cupertino-based company found the terms acceptable, and Apple Music will now replace Pepsi as the show’s main sponsor.
Being the main sponsor of the Super Bowl halftime show is Apple’s departure from its principles. The company prides itself on promoting its brand in a way that other consumer goods companies such as Coca-Cola, Budweiser and McDonald’s have long sponsored sports and cultural events. Apple is committed to not sponsoring events that it does not control. Now the company is starting to use this method of promotion.
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Source: NYT
