Peyton Manning Sells Stake in 31 Papa John’s Franchise Locations
Two days before the NFL and Papa John’s (PZZA) agreed to part ways, Peyton Manning chose to do the same with his stake in 31 Papa John’s franchise locations. Manning, who acquired the Denver area stores when he signed with the Broncos in ’12, will remain a company spokesperson and ambassador. The league has since announced Pizza Hut (YUM) will become the Official Pizza of the NFL, signing a 4-year deal (PZZA had 3 left on theirs) with an annual value exceeding the amount PZZA was schedule to pay. Papa John’s will retain an affiliation with the league through its 22 team sponsorship deals.
Howie Long-Short: It’s unclear just how much equity Manning had in each location, as his stake was tied up in a joint venture with Papa John’s International. What is clear, are the costs (and requirements) associated with opening a PZZA location. Franchisees must have a minimum net worth of $250,000 (for one store), with at least $75,000 in liquid assets. The franchise fee is just $25,000, but there is a 5% royalty fee on monthly net sales. Franchisees are also expected to invest 8% of monthly sales back into marketing and advertising their location. In all, the investment required to open a 1,200-1,400 SF location is estimated at $300,000. As of 2016, the company’s sales to investment ratio was $879,794.
Fan Marino: Mike and the Mad Dog set the bar for modern sports talk radio (and created radio row, if you ask Mike), hosting afternoon drive on WFAN (NYC) for more than 20 years. The pair broke up in 2008, though Mike remained on the station until late 2017. While Mike became a caricature of himself late in his career, he delivered one of his most epic monologues following Super Bowl 50. It’s an all-time favorite among the Mongos (his fanatical fan base, proud Mongo here). You MUST listen (Skip to 11:15, make sure you listen through at least 11:50).
Interested in Sports? Sports Business? Sports Finance? Sign-up for our free daily email newsletter list, here!