League steps closer to closing its largest-ever sponsorship deal
It’s been an ugly fight, and it may not be over, but for now Molson says it has been “vindicated” by the Ontario Court of Appeals, which has ruled in favour of its sponsorship deal with the National Hockey League.
In February, Molson and the NHL announced the largest sponsorship deal in the league’s history, reported at $375 million.
However, rival brand Labatt subsequently argued it already had a beer-category sponsorship with the league, and put the issue before a judge. In June, the Ontario Superior Court upheld Labatt’s claim.
But legal battles are seldom that simple, and Molson appealed. Today, the court of appeals took issue with Superior Court Judge Frank Neubold’s interpretation of Labatt’s dealings and set his ruling aside.
Dave Perkins, president and CEO of Molson Coors Canada, said in a statement that his organization felt “vindicated” by the ruling, and looked forward “to be able to pursue our aspiration of delighting fans of the NHL this season and beyond. As official beer of the NHL, Molson Canadian’s primary job will be to fan the flames of passion around the NHL and its teams through innovative hockey initiatives, promotions and experiential marketing that provide value for both beer drinkers and hockey fans alike.”
Labatt has responded by saying it will “pursue its legal rights vigorously.” It characterizes the appeal court’s decision as a reaction to “a procedural error” in the Superior Court ruling.
“Based on the merits of the case we will aggressively pursue all legal remedies available to us,” said Charlie Angelakos, vice-president of corporate affairs at Labatt.
“Hockey remains an important aspect of the Budweiser brand and we will continue to reinforce our relationship with hockey through programs we have in place and ready to implement at both the grass roots and professional team levels in Canada.”
As part of his statement, Angelakos also announced that Budweiser, a sibling brand to Labatt, will soon sponsor three Canadian NHL teams – the Vancouver Canucks, the Calgary Flames and the soon-to-return Winnipeg Jets – starting Oct. 5.
Related: Molson, Labatt and the stakes for NHL beer sponsorship
