A Papa John’s (NASDAQ:PZZA) partnership with Shaquille O’Neal has been inked, which sees the NBA legend and Hall of Fame member endorse the franchise.
Here are seven things to know about the deal:
- The former Los Angeles Lakers player will be the new face of the pizza chain, which came under fire in 2017 when it was revealed that former CEO John Schnatter used a racial slur in a conference call. This led to Schnatter stepping down, and it appears Papa John’s is looking to gain back some customers by bringing Shaq on board.
- The pizza chain will pay O’Neal’s business, ABG-Shaq, roughly $4.125 million over three years in the endorsement deal.
- The move grants Papa John’s the right to include O’Neal, his nickname, likeness and other intellectual property in its advertisements.
- O’Neal will also be the brand ambassador for Papa John’s during live appearances and social media campaigns.
- Additionally, Papa John’s will also pay for O’Neal’s expenses associated with “marketing and personal services and grant him stock in the company.”
- In addition to being a brand ambassador and a member of the company’s board of directors, Shaq has invested roughly $840,000 in nine Atlanta-area company restaurants in a joint venture that provides him with 30% ownership of the locations.
- The endorsement deal is slated to expire in March 2022, although it can be extended for one year by mutual agreement.
PZZA stock is down 2.4% Tuesday.