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Shaquille O'Neal's new role as Papa John's face was costly for the conflicting pizza chain.
Papa John's will pay O'Neal's company, ABG-Shaq, a total of $ 4.125 million over three years under an endorsement contract, the company said Monday in a document filed with the company. DRY. The agreement gives Papa John's the right to include O'Neal, its identity, nickname and other intellectual property rights in its commercials. O'Neal will also serve as the brand's ambassador for live appearances and social media campaigns.
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In addition to his payroll, Papa John's will cover O'Neal's "marketing and personal services" expenses and grant him shares in the company. In addition to his role as Papa John's brand ambassador and board member, O'Neal invested approximately $ 840,000 in nine Papa John's restaurants in the Atlanta area as part of a joint venture to allows to acquire 30% of the capital of its sites.
The approval agreement is expected to expire in March 2022, but it can be extended for one year by mutual agreement. The contract also includes unspecified exclusive rights and early termination clauses.
Papa John's announced for the first time its partnership with O'Neal in March, shortly after settling a protracted conflict with company founder John Schnatter. The pizza chain has reshaped its brand and marketing campaigns in recent months, following an incident in which Schnatter used a racial insult during a teleconference, which exacerbated the steady decline in sales.
Schnatter, who has long been Papa John's largest shareholder, would intend to divest his interests in the company and would have already started selling certain shares.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| PZZA | PAPA JOHNS INTL | 50.74 | 0.00 | 0.00% |
"In addition to her strong business acumen, Shaquille understands how to create lasting relationships with consumers and energize employees," said Steve Ritchie, CEO of Papa John's, in a March statement. "I look forward to working with him as a board member and brand partner to advance the many initiatives we are taking in the organization to create even more success for Papa John's and our stakeholders." .
O'Neal's first renovated Papa John's restaurant opened Monday at the Georgia Tech University campus. Papa John's plans to air its first commercials starring O'Neal later this year, USA Today reported.
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"I plan to buy as many [locations] I can, "O'Neal told the newspaper. "Everyone loves pizza and pizza loves everyone."
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