Papa John’s Pizza, NFL Mutually Agree to End Sponsorship Deal

Papa John’s has ceased to be the official pizza of the NFL.

Papa John’s Pizza deal with NFL news

The chain’s CEO Steve Richie stated Tuesday on the company’s earnings conference call that they and the league mutually agreed this decision was in Papa John’s best interest.

The pizza company became the NFL’s official pizza in 2010. Papa John’s said on the aforementioned call that there was no additional cost for undoing the deal.

“The NFL and Papa John’s have made a mutual decision to shift from their official league sponsorship to a focus on partnerships with 22 local NFL teams, presence in broadcast and digital media, and key personalities in the sport,” the league and company said in a joint statement.

Papa John’s will continue to invest in the NFL through its local-market deals with 22 teams. The company will no longer be present at the league’s big events, including the draft and the Super Bowl, which will be given to the new pizza sponsor. The league is expected to have a replacement before the 2018 season starts.

Nearly four months ago, Papa John’s founder John Schnatter, then also the CEO, said players who protested the national anthem hurt the business. The company began pulling the NFL logo from its commercials during game broadcasts.

“We are disappointed the NFL and its leadership did not resolve this,” Schnatter said at the time.

Twelve days later, Schnatter apologized for his remarks after the company’s stock had dropped 12 percent.

Papa John’s chief financial officer, Lance Tucker, will reportedly leave after this week to become CFO at Jack in the Box.

Sales for the pizza chain decreased 3.9 percent nationwide from October to December compare to the same time period a year prior, the company announced Tuesday. They said it was due to promotions that didn’t pan out and negative consumer perception. Shares were down 7 percent in after-hours trading on Tuesday as of 5:09 pm EST.

Papa John’s also made headlines in November when it was revealed members of several neo-Nazi and other white supremacist groups’ began endorsing the chain’s products on their websites. The company quickly released a statement saying they refused to sell to these types of customers.

NEW YORK, NY – JANUARY 31: John H. Schnatter, Founder, Chairman & CEO of Papa John’s International, Inc. rings the NASDAQ Opening Bell at NASDAQ MarketSite on January 31, 2014 in New York City. (Photo by Rob Kim/Getty Images)