FedEx Enters NIL With Historic $25 Million Deal With Memphis, Kicks Off School Vs. Athletics Money Race
FedEx has delivered a massive shakeup to the college athletics world with a $25 million investment into the Memphis athletic department and its NIL fund.
The historic deal was announced Friday morning and is reportedly the largest corporate NIL partnership since the inception of Name, Image and Likeness. Working with Altius Sports Partners, FedEx will invest $5 million per year over a five-year span.
FexEx is based out of Memphis, so this was the perfect partnership. It sent shockwaves around NIL spaces throughout the country, especially with the Tigers looking to potentially join one of the Power-4 conferences still remaining in college sports.
FedEx is investing $25 million into Memphis athletics in a historic deal. (Getty Images)
"We are truly appreciative of the vision and support of FedEx's leadership in this area," Memphis athletic director Laird Veatch noted in a university statement. "NIL opportunities have become a crucial facet of the student-athlete dynamic, and we believe major corporate support of NIL will need to be a key part of the future landscape of college athletics. We are confident this groundbreaking commitment by one of the world's most well-known and successful companies will inspire others in Tiger Nation to realize the power of investing in student-athletes and join the mission with further support."
This is the type of move that will afford Memphis the opportunity to play in the same ballpark as other schools around the country, and it could undoubtedly lead to additional deals with corporate sponsors.
"We evaluated the evolving NIL landscape, exploring how we can best deliver positive impact to student-athletes and connect them to meaningful opportunities for both themselves and the community and made the decision to reallocate marketing funds to an NIL platform," said Brian Philips, EVP & CMO at FedEx. "This gives us an opportunity to invest in bright, young athletes in our great hometown of Memphis, strengthening our connection to the next generation of leaders."
Memphis Makes Massive Push Towards The Next Realignment In College
While there is still work to be done when it comes to Memphis getting on the same wavelength as other collectives around the country, this is a monumental start. When the Big 12 spurned Memphis during the latest round of realignment, leaders on campus made it a priority to show commissioners around college athletics that the Tigers could hang with anyone in the country.
While head football coach Ryan Silverfield got the Tigers back into the 10-win category, there was a sense of betrayal by the Memphis athletic department when four other AAC member schools were invited to either the Big 12 or the ACC. The goal was to prove the doubters wrong, and show other conferences that there was a strong infrastructure at Memphis that could pay off down the road for a more established conference.
PORTLAND, OREGON - MARCH 17: Head coach Penny Hardaway of the Memphis Tigers reacts as the Tigers defeat the Boise State Broncos 64-53 in the first round game of the 2022 NCAA Men's Basketball Tournament (Photo by Abbie Parr/Getty Images)
Let's not forget that with the College Football Playoff moving to a 12-team format, this infusion of cash over a five-year period could lead to Memphis putting together one of the better rosters among Group of Five schools. We all know that the basketball program is looking to get back into the NCAA Tournament, after missing the postseason for the first time in three years under Penny Hardaway.
Now, with the additional funds provided by FedEx, along with other prominent boosters, the Tigers can put together a roster that should be able to compete for a Final-Four berth.
FedEx Set The Standard For Other Companies To Get Involved With NIL
If you take a look at what Oregon is doing, the first person that comes to mind when discussing boosters and NIL is Phil Knight. When you think of a school like Maryland, the Under Armour brand is attached with their uniforms on the field. Both companies have vested interest in both schools, just like John Tyson of Tyson Foods is the one who lured John Calipari to Arkansas.
But we haven't seen these companies jump into the NIL game like FedEx just did. While other powerful companies will sign certain high-profile players to personal NIL deals, a corporation diverting millions of dollars to their local school could set off a chain reaction.
Now, the question is which school will reach-out to their home state fortune-500 company and work towards a partnership that will benefit all sides? I don't imagine Dollar General will start funding NIL deals for Tennessee athletics, just because the company is based out of the state. But I think you can tell where we are headed when it comes to universities looking for corporate sponsors to fund NIL, and not the signage that hangs within a stadium or arena.
I'd imagine a football program like Kentucky would've rather had Kroger Foods help with NIL, and not buy the rights to the football stadium, which is known as Kroger Field. The same could be said for Tennessee, which entered into a partnership with Food City for the naming rights to the basketball arena.
LEXINGTON, KY - SEPTEMBER 09: New Kroger Field sign at the stadium during a regular season college football game between the Eastern Kentucky Colonels and the Kentucky Wildcats on September 09, 2017, at Kroger Field in Lexington, KY. (Photo by Mat Gdowski/Icon Sportswire via Getty Images)
The point is, we are seeing two different conversations happening across college campuses. On one side, the university is looking for corporate backing to help fund projects on campus, while the athletic teams are hoping to strike deals like the one Memphis just announced with FedEx. This is where some of the harder conversations are happening within athletic departments at the moment.
But, with this partnership between Memphis and FedEx, I would imagine there are more deals like this coming to college athletics, as the Tigers just set a new bar.