The long relationship between Joe Gibbs Racing star Denny Hamlin and FedEx appears to run a fine line speeding through the 2024 season. The shipping giant’s sponsorship for the #11 driver was renewed when he chose to pen a contract extension with his team last year. However, with FedEx continuing to cut back on its sports investments in various other venues, it could soon pull the plug on NASCAR as well.
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Adam Stern of Sports Business Journal recently reported that FedEx was erasing its name from the Washington Commanders’ stadium, FedEx Field. The naming deal had been in place since 1999 and had two more years left to go. Believing that its marketing investments ought to be aimed at a more global audience, the company has reduced its term on the deal.
FedEx’s statement read, “We continuously review our marketing programs to ensure our investments are aligned with our evolving business objectives. As part of this review, we have decided to not continue as the naming rights sponsor of FedEx Field as we focus on our broader NFL sponsorship and opportunities that reflect our global footprint.”
.@FedEx is ending its stadium naming rights deal with the @Commanders, as the company continues dialing back its sports marketing spend amid broader cost cutting efforts. https://t.co/RlrfXbw2dH
— Adam Stern (@A_S12) February 28, 2024
Over in NASCAR, FedEx has been Hamlin’s primary partner in the Cup Series since his debut back in 2005. The combination has proven to be one of the most iconic and successful relationships, bringing in various accolades, including three Daytona 500s.
When Hamlin was under dark clouds last year regarding his future with Joe Gibbs Racing, so was FedEx. But his contract extension, among other reasons, convinced FedEx to stay for the time.
Why did FedEx choose to remain with Joe Gibbs Racing despite changing business priorities?
Apart from benefitting from the long association with Denny Hamlin, FedEx has also had a lot of advantages by being a partner with Joe Gibbs Racing. The racing team has also helped it complete various successful B2B deals in NASCAR. Rick Cueller, VP of Right Formula sports marketing agency puts it, “It would have been easy for a brand like FedEx to make a full exit as they restructure business priorities – they’ve had a great run in NASCAR.”
He continued, “(But) when you factor in the relationships and business solutions developed over the life of the partnership, you get compelling reasons to find ways to keep them involved.” Despite the extensions, FedEx’s appearances on Denny Hamlin’s car have been dwindling over the last two seasons.
With the company sponsoring only 13 out of 38 races in 2023, the number could soon cease to exist beyond 2024.
