Hy-Vee ends sponsorship of Kansas City Royals
Hy-Vee Inc. has ended its sponsorship of the Kansas City Royals after the baseball team asked for "significantly more" money to renew its contract.
The West Des Moines-based grocery chain has been the official grocer of the Royals since 2001, sponsoring everything from upper-deck seats to firework displays. But the Royals, fresh off two World Series appearances in the past three years, wanted more money than Hy-Vee was willing to pay.
“While we are disappointed to end our long-standing relationship, we couldn’t justify spending the amount that was being asked without it impacting our customers in the long run," Donna Tweeten, Hy-Vee’s chief marketing officer, said in a news release. "We have to be fiscally responsible when evaluating our sponsorships and this offer simply didn’t fit that criteria.”
The split from the Royals marks the end of a high-profile partnership for the grocery chain. Hy-Vee signs at Kauffman Stadium were seen on millions of TV sets nationwide during recent playoff runs. The upper deck was named the Hy-Vee level. Hy-Vee also sponsored weekly fireworks displays and sold Royals tickets at stores around Kansas and Missouri. The Hy-Vee Cool Zone, an area with live entertainment and cooling stations, was recently added to the outfield.
The Royals and Hy-Vee last renewed their sponsorship agreement in 2013.
Hy-Vee wouldn't disclose how much money the Royals wanted for a renewal, but company spokesperson Tina Potthoff said it was significantly more than the 2013 contract.
Hy-Vee officials said they negotiated for weeks but couldn't come to an agreement.
The Royals, it seems, would have come to the negotiating table with more leverage than in 2013. Since then, the team has ended a 30-year playoff drought, won two American League championships and a World Series, set attendance records and led the major leagues in local television ratings.
Buzz: Loyalty to Royals pays off for Hy-Vee
Hy-Vee will maintain a presence in the Kansas City sports market. It recently renewed its contract to sponsor the Kansas City Chiefs through 2023 and is a sponsor of the Kansas Speedway.
The company, which has made an aggressive push to expand into the Twin Cities, signed sponsorship contracts in 2015 with the Minnesota Vikings and the Minnesota Wild.
The end of the Royals sponsorship comes nearly two years after the grocery chain announced it would stop sponsoring the Hy-Vee Triathlon, now called the Des Moines Triathlon.
A spokesman for the Royals said the club is grateful for Hy-Vee's support over the years and will announce sponsorships for the 2017 season at a later date.