General Motors Loses NFL Sponsorship Deal To Hyundai
General Motors Company (NYSE: GM)'s sponsorship contract with the National Football League is set to expire.
Bloomberg reported last week that the Detroit-based automaker will see its contract with the NFL end replaced with South Korean based Hyundai Motor Co.
General Motors' contract dates back to 2011, which gave the company permission to use NFL trademarks in its advertising. On Monday, the NFL and Hyundai jointly announced the establishment of a new four-year sponsorship deal.
"We are huge football fans at Hyundai and feel there is no better venue to reach consumers, increase consideration and tell the Hyundai brand story," said Dave Zuchowski, president and CEO, Hyundai Motor America in a press release. "We can't wait to show the NFL's 188 million fans the great design, advanced technologies, dynamic performance and numerous safety features within the Hyundai lineup. The NFL and Hyundai also share a commitment to helping the communities where we do business, another important aspect of our sponsorship."
Automotive News noted that General Motors annual sponsorship cost was only $25 million a year, but the company spent more than $150 million per year on NFL-related marketing, including television commercials.
Hyundai, along with its corporate sibling, Kia Motors Corp. has invested a lot of marketing dollars in to sports. Hyundai recently sponsored the 2014 FIFA World Cup while Kia holds sponsorship rights with the National Basketball Association which includes an endorsement from all-star LeBron James for its K900 luxury sedan.
"We are pleased to welcome Hyundai to our family of sponsors," said Renie Anderson, the NFL's senior vice president of sponsorship in the press release. "We appreciate Hyundai's enthusiasm as we work together to reach our fans with innovative programs during our season and with our major calendar events throughout the year."
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