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Coke quitting the Yankees?
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October 19, 1998: 8:17 a.m. ET
$12M sponsorship isn't worth it to soda maker despite championship season
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NEW YORK (CNNfn) - Fans of the Bronx Bombers may have plenty to smile about, but it will be harder for them to have a ballpark Coke with that smile if Coca-Cola Co. refuses to renew its sponsorship of the New York Yankees.
Coca-Cola confirmed reports Monday that it has rejected the Yankees' asking price of $12 million to extend its Yankee Stadium soft drink concession.
"The math just doesn't work at this level," Coke Marketing Vice President Steve Koonin told the Wall Street Journal. "A lot of people believe these places are real valuable and you sell a lot of product, but the return is minuscule. Basically, Yankee Stadium does as much business as a medium-sized convenience store."
However, Koonin added that Coke would like to stay with the Yankees in the wake of the club's American League record season, bringing in 2.9 million ticket buyers during the season.
It is possible for negotiations between company and ball club to continue.
If Coke drops out of Yankee Stadium, rival Pepsi almost certainly would fill its soft drink shoes as it recently did with the Mets and Angels and, in football, the Patriots, Packers and Bills.
"We're always on the lookout for new ways to expand our brand presence," a Pepsi spokesman told the Journal.
Coke stock (KO) rose Friday to close at 69-3/16, up 1-11/16. PepsiCo shares (PEP) gained 1-9/16 to 33-1/2. 
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