Posts Tagged ‘Anheuser-Busch’

Image of Anheuser-Busch LogoBy RICHARD SANDOMIR

Published: November 12, 2010

Budweiser’s decades-long connection to Major League Baseball frayed Friday when the giant brewer’s parent company, Anheuser-Busch, alleged in a federal lawsuit that baseball reneged on an agreement reached earlier this year to extend the beer maker’s sponsorship.

With Budweiser’s sponsorship set to expire this year, the company said that it negotiated the terms of a multiyear renewal last April. The sides even exchanged congratulatory messages.

One baseball executive, John Brody, then the head of corporate sales and marketing, sent an e-mail to Budweiser that read, “We are excited about the extension of this amazing partnership.”

But within a month, the deal began to unravel when Anheuser-Busch became the official beer sponsor of the National Football League, according to the lawsuit filed in Manhattan federal court against Major League Baseball Properties.

At that point, the suit said, Tim Brosnan, an executive vice president in charge of business, “began to complain that the economic terms of the April renewal agreement were no longer satisfactory and that the market had changed,” according to the court papers.

The lawsuit did not cite financial terms of any of the deals, but the lawsuit said that Brosnan demanded Anheuser-Busch pay “several times” more than had been negotiated. In September, Brosnan informed the brewer that baseball was going to try to sell the beer sponsorship to other brewers. On Oct. 1, Brosnan informed David Peacock, the president of Anheuser-Busch, that baseball was “going to disavow” the April deal. (more…)