1984-1994 SPECIAL REPORT: "MICHAEL JACKSON & PEPSI COLA"

In November 1983 Jackson and his brothers partnered with PepsiCo in a $5 million promotional deal that broke records for a celebrity endorsement. The first Pepsi Cola campaign, which ran in the United States from 1983 to 1984 and launched its iconic "New Generation" theme, included tour sponsorship, public relations events, and in-store displays. Jackson, who was involved in creating the advertisement, suggested using his song "Billie Jean" as its jingle with revised lyrics. According to a Billboard report in 2009, Brian J. Murphy, executive VP of branded management at TBA Global, said: "You couldn't separate the tour from the endorsement from the licensing of the music, and then the integration of the music into the Pepsi fabric."

On January 27, 1984, Michael and other members of the Jacksons filmed a Pepsi commercial overseen by executive Phil Dusenberry,[ a BBDO ad agency executive, and Alan Pottasch, Pepsi's Worldwide Creative Director, at the Shrine Auditorium in Los Angeles. During a simulated concert before a full house of fans, pyrotechnics accidentally set Jackson's hair on fire, causing second-degree burns to his scalp. Jackson underwent treatment to hide the scars and had his third rhinoplasty shortly thereafter. Pepsi settled out of court, and Jackson donated the $1.5 million settlement to the Brotman Medical Center in Culver City, California; its Michael Jackson Burn Center is named in his honor. Dusenberry recounted the episode in his memoir, Then We Set His Hair on Fire: Insights and Accidents from a Hall of Fame Career in Advertising. Jackson signed a second agreement with Pepsi in the late 1980s for a reported $10 million. The second campaign had a global reach of more than 20 countries and would provide financial support for Jackson's Bad album and 1987–88 world tour. Although Jackson had endorsements and advertising deals with other companies, such as LA Gear, Suzuki, and Sony, none were as significant as his deals with Pepsi, which later signed other music stars such as Britney Spears and Beyoncé to promote its products.