Story From The Commercial Appeal
FedEx is joining the fast company of NASCAR.
The Memphis-based shipping giant said Wednesday it has signed a letter of intent to sponsor Joe Gibbs Racing's third car starting in 2005. A driver hasn't been chosen for the No. 11 FedEx Chevrolet.
Though new to NASCAR, FedEx is something of a sports superstar, corporate division, with its colors and logo on an NFL stadium, a major college football bowl game and - coming this fall, with Memphis's FedExForum - an NBA arena.
"A company with the pedigree and history that FedEx brings to the table is certainly a coup for NASCAR," said Andy Dallin, a principal at ADC Partners, a California-based sports and sponsorship consulting firm.
"From the FedEx perspective . . . it seems to be a good fit. NASCAR continues to grow, continues to attract an audience well beyond what had stereotypically been associated with NASCAR."
No financial terms were announced, although UPS's sponsorship of the No. 88 Ford driven by Dale Jarrett - one of the sport's marquee drivers - reportedly is worth as much as $16 million a year.
FedEx confirmed only that it has signed a letter of intent. Gibbs Racing said it expects a contract to be signed within a month.
In 2001, the company bought naming rights to FedExForum, a deal that paid the Grizzlies, the building's operators, $52.5 million. The arena, also home to University of Memphis men's basketball, opens this fall.
In 1999, the company bought naming rights to the Washington Redskins' FedEx Field in a reported 27-year, $205 million deal.
Other company sponsorships include the FedEx St. Jude Classic, Memphis's stop on the PGA Tour, and national events such as the FedEx Orange Bowl.
"In different ways, all of these sponsorships have both a very intimate appeal and a very broad appeal from a national advertising standpoint," said company spokesman Howard Clabo.
He said NASCAR is attractive to FedEx because the racing season is gearing up as the NFL season is winding down.
FedEx and Gibbs Racing have been in talks for about 18 months. It hasn't been decided if FedEx will have associated sponsorships with other Gibbs drivers, Bobby Labonte and Tony Stewart.
One of the candidates to drive the new FedEx-sponsored Chevy is Busch Series rookie J. J. Yeley. Yeley, a Gibbs driver, has one top 10 finish in nine starts and sits 29th in the Busch standings.
"What we're going to do is build a list (of potential drivers) based on what kind of potential they have and what kind of equipment they're running already," said Dean Noble, vice president of business affairs for Gibbs Racing. "After interviews we'd narrow the list to a couple of guys who would meet with FedEx. It's truly a partnership putting this team together."
FedEx's entry into the sport could help the Memphis Motorsports Park, said vice president and general manager Jason Rittenberry. The track has NASCAR Busch Series and Craftsman Truck Series events and covets a place in NASCAR's premier Nextel Cup Series.
"We hoped they would get involved with NASCAR," Rittenberry said. "Now to see that they're making that kind of commitment to NASCAR, we're hoping that it would lead to some influence with NASCAR to help us.
"If anyone in Memphis can help us lure a Nextel Cup event, FedEx would be the company."
unless someones got a hook up.
