Verizon (VZ) Reviewing NFL Partnership and Other Sponsorship Deals to Cut Costs

Verizon Communications Inc. (NYSE:VZ) is included among the 15 Best High Dividend Stocks to Invest in Under $100.

On March 4, The Wall Street Journal reported that Verizon Communications Inc. (NYSE:VZ) has been reviewing the hundreds of millions of dollars it spends on sports and music sponsorships. The review is part of a broader effort to reduce costs across the business. In recent months, the company held internal discussions about possibly scaling back, or even exiting, its high-profile partnership with the National Football League.

The sponsorship agreement, signed in 2021 and valued at more than $1 billion, made Verizon the league’s official 5G network. It also allowed the telecom company to use NFL branding in its marketing. Those discussions have slowed since then. Changing or ending the deal would be complicated and could require Verizon to pay a penalty for breaking the contract early.

A company spokesperson said Verizon is reviewing all spending, including sponsorships. The spokesperson also said that leaving the NFL partnership was never the company’s objective. An NFL spokesperson said the league values its long-standing relationship with Verizon and expects the partnership to continue supporting both organizations.

Verizon spends more than $250 million each year on sponsorships. These include agreements with the NFL, FIFA, several sports teams, and iHeartRadio. The review comes as new CEO Daniel Schulman moves ahead with a broad cost-cutting plan after taking over the role in October. The company has already announced its largest round of layoffs, eliminating about 13,000 jobs. The move is part of a wider effort to simplify operations and address customer losses.

Verizon Communications Inc. (NYSE:VZ) is a holding company. Through its subsidiaries, it provides communications, technology, information, and streaming products and services to consumers, businesses, and government entities.

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