NEW YORK (CNN/Money) -
Major League Baseball has tapped Taco Bell as its first national fast-food sponsor since 1987, with a published report saying the sport picked it over a pitch from McDonald's.
The three-year deal with Taco Bell, a unit of Yum Brands (YUM: Research, Estimates), was announced by Major League Baseball early Friday. While the value of the deal was not announced, the Wall Street Journal reported it was worth $25 million.
The paper quotes John Brody, MLB's senior vice president of corporate sales and marketing, as saying that MLB had discussions about a possible McDonald's (MCD: Research, Estimates) sponsorship with one of the fast-food giant's media services company in late May and early June.
But a McDonald's spokeswoman told the paper the company had no discussions with MLB and wasn't pursuing any. McDonald's says it didn't give directions to its agencies to pursue an MLB agreement.
Brody told the paper that discussions with Taco Bell had begun in April.
One thing working for Taco Bell and against McDonald's is the soft drinks the chains serve. McDonald's serves Coca-Cola products, while Taco Bell serves Pepsi products. Pepsi is MLB's official soft drink sponsor. Yum Brands is a former PepsiCo unit.
Under the agreement, MLB said Taco Bell will receive exclusive category rights as well as on-site signage and advertising during major MLB events, including the World Series and the All-Star Game. But the paper reports that five teams -- the New York Yankees, Chicago White Sox, Atlanta Braves, Detroit Tigers and Cleveland Indians -- have their own exclusive deals with McDonald's and that half of major league teams serve Coke rather than Pepsi products at their concession stands.
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