Jones Soda's Cost For Terminating Nets Deal: $350K
Earlier this week, we wrote about the curious end to the Nets-Jones Soda deal and mentioned it may have been about more than Brooklyn being a Coke town. In fact, Jones had been heavily pairing back expenses and realigning resources in recent quarters - including ending their other major sports deal with the Seattle Seahawks last Summer. As it turns out, exiting the Nets deal cost the Seattle-beverage company $350,000.
Jones Soda's operating expenses for the second quarter rose by $400,000 largely due to what it said was "a $350,000 charge accrued to the second quarter in connection with the termination of our New Jersey Nets sponsorship agreement in August 2011."
As a result of this, Jones Soda's ongoing sponsorship commitments have been reduced by approximately seven million dollars through 2017, which would be 233% of the company's expected three million dollar marketing spend this year. With that kind of budget, it's a pretty safe bet you won't see Jones competing with Coca-Cola and Pepsi for other exclusive pouring rights anytime soon.
