Verizon Considered Exiting $1 Billion NFL Sponsorship Amid Cost-Cutting Efforts

As part of an effort to reduce costs, Verizon Communications has been looking over the hundreds of millions of dollars it spends on sports and music sponsorships, including the NFL, according to The Wall Street Journal. 

The Wall Street Journal Reports the NFL Deal Almost Ended 

According to the Journal, the company did discuss pulling back on or fully exiting the deal with the NFL. 

Their deal has been in place since 2021 and lasts for a decade. It costs about $1 billion, the Journal reports. This made Verizon the league's official 5G network and allowed it to use NFL branding in ads. 

The Journal also reports that "people familiar with the matter" say that the discussions have cooled because amending the deal isn't easy and exiting would likely incur a penalty. 

“We’re looking at every expense and investment across the business, sponsorships included,” a Verizon spokesman said. “Withdrawing from the NFL partnership was not a goal and not the plan.” 

NFL on the Deal, Other Verizon Deals, and Layoffs 

The Journal also reports that an NFL spokesman said the league values the pact and looks forward to “working together to drive their business forward while strengthening our game and league into the future.”

Verizon has deals with the NFL, FIFA, other individual teams, and iHeart Radio. 

These deals amount to a quarter of a billion dollars, according to people familiar with the matter, per the Journal. 

Daniel Schulman took over as chief executive of Verizon in October and has been aggressively cutting costs to streamline operations and withstand customers leaving the service. 

Late last year, Verizon laid off 13,000 employees, which was its largest ever. 

Right now, Verizon is the largest telecommunications company by subscribers, but there's plenty of competition. 

The Journal reports that Verizon "plans to exit or streamline legacy businesses that don’t offer clear paths to profitability and will look to be a more nimble organization."