Pepsi drops its name from fairgrounds arena

Published: .
Updated: .

Pepsi is dropping its name from the Indiana State Fairgrounds' Pepsi Coliseum.

State Fair Executive Director Cindy Hoye said Monday that fair officials could not agree on a new naming rights contract with PepsiCo Inc.

The company has been paying the fair $170,000 a year to have its name atop the Coliseum. The fair wanted to up the terms to $500,000 a year. Hoye says that amount is more on par with other deals at similar sized venues.

The news comes as the fair begins a renovation of the coliseum in the wake of last year's deadly stage collapse. The updated venue is expected to play host to concerts by 2014.

Hoye says money from a new naming rights contract should help pay for the $53 million renovation.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)