Jones Soda scales back sponsorship, sales deal with Seattle Seahawks

Financially strapped Jones Soda is backing away from parts of its contract with the Seattle Seahawks, but will remain the football team's soda-pop sponsor.

The Seattle company could have backed out of its contract next year, but negotiated a new, more modest deal that extends through the 2011-2012 National Football League season, said Chief Financial Officer Michael O'Brien.

Jones will no longer provide energy drinks and water at Qwest Field, and it is giving up a suite where it entertained distributors and prospective customers.

"We're still doing the soda, which we consider to be the material part of the agreement," O'Brien said.

The company will pay the Seahawks less for the smaller deal, but it is not disclosing figures. It never said how much it paid for the sponsorship when it began in 2007.

Jones will continue to have ads in the stadium and to sell Seahawks-branded soda in bottles and cans, O'Brien said.

In August, Jones said its financial predicament raises "substantial doubt about our ability to continue as a going concern."

Its profits have slumped, it has laid off more than half its work force, and Nasdaq has warned that it could be delisted if its stock price stays below $1 a share. The stock fell 2.5 cents on Friday to 85 cents a share.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com