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Visa Inc (V.N) signed on as the exclusive payment service of the National Football League for another five seasons, citing the U.S. league's popularity at a time when sports fans and corporate backers are slashing spending.

The world's largest payment network said on Tuesday the deal with the 32-team league will run through the 2014 season, continuing a relationship that dates back to 1995.

Terms of the deal were not disclosed. However, NFL officials said it was for more than the current agreement, due to expire in March 2010 and previously valued at about $8 million a year by Street & Smith's SportsBusiness Journal.

"It is the No. 1 sport in the country when it comes to viewing," Antonio Lucio, Visa's chief marketing officer, said in a telephone interview. "It is a very well-managed institution of people that understand the needs of sponsors.

"When you add on top of that everything that has to do with increases in audiences during tough economic times, it is a property that actually fits very well with our strategic priorities," he added.

Sports leagues and teams have been hurt over the past year as major sponsors from General Motors Co [GM.UL] to FedEx Corp (FDX.N) and top banks cut spending on sports marketing, including sponsorships, advertising and tickets.

Spending on sports sponsorships by North American-based companies is expected to rise only 0.7 percent this year to $11.48 billion, after growth the previous year of 14.6 percent, according to IEG, a research firm owned by advertising giant WPP Plc (WPP.L).

The NFL has seen ticket sales drop in some cities this season, resulting in a few games being blacked out in local markets. But it remains the most popular U.S. sports league thanks to strong TV ratings, with annual revenue of about $8 billion.

In addition to Visa, the NFL renewed a sponsorship with International Business Machines Corp (IBM.N), NFL Chief Marketing Officer Mark Waller said. Last month, it signed a deal with Procter & Gamble Co(PG.N) reportedly valued at $10 million or more a year.

"We're an incredibly strong proposition in the marketplace," Waller said. "The sport is strong, the ratings are strong and our brand is strong."

However, no sport is immune to the recession. Growth of the NFL's sponsorship revenue will be in the low single-digit percentage range this year compared with the high single-digit growth of the past, Waller said.

NFL owners last year blamed rising costs when they terminated their labor contract with the players union two years early in a move to cut salaries. Both sides are now preparing for a possible work stoppage for the 2011 season.

Visa, which also is a global sponsor of the Olympics and soccer's World Cup, has seen revenue growth slow over the last year as debt-burdened consumers used their credit cards less often. Last week, Visa CEO Joseph Saunders said U.S. consumer spending would remain lackluster for the rest of the year.

(Source: Reuters)