Fed Ex just pledged $25 Million for the Memphis NIL fund
- Thread starter pittguy81
- Start date
That's small potatoes. $5 million per year. Probably $3.5 million to football, $1.4 million to basketball and $100K to women's basketball. It will help basketball but doesn't do much for football.
Also, if I am a FedEx shareholder (well, we all are indirectly through mutual funds), I am pissed as hell. $25 million to extremely obscure college players that nobody ever heard of does nothing to help the FedEx brand. This is the first NIL deal entered into by a real company and not some private company owned by a fanboy. I would hope shareholders rise up against this frivolous spending. I dont know how the FedEx Board can justify this.
I wouldn't say they're screwed. These are the types of deals the smaller schools need to hop in on. The big corporations. Become their marketing tool.
Nike has dumped money into Oregon for years because, well Phil Knight..but #2 the program became pretty much a Nike post board with weekly jersey presentations.
Nike has dumped money into Oregon for years because, well Phil Knight..but #2 the program became pretty much a Nike post board with weekly jersey presentations.
There's a reason this FedEx deal is the 1st. It doesn't make business sense and I don't understand how FedEx is getting away with it. Paying salaries to Memphis players doesn't help FedEx make money. You cite Nike but I doubt Nike is paying salaries for Oregon players. Maybe Phil Knight is but that's not Nike. These "real" businesses have to make deals which make business sense.
It does make sense, it's advertising. FedEx pays Memphis and Memphis puts FedEx logos around.
My point about Nike wasn't to say they were paying the players, it was to highlight the benefit of corporate advertising.
That couldn't be more wrong. This is NOT advertising. FedEx does pay to advertise with Memphis but this isnt that. This is FedEx buying athletes to play for Memphis. In exchange, yes, there will be some local billboards, maybe local commercials, local hospital visits featuring Memphis players wearing a FedEx shirt but FedEx is a global company. A commercial on local Memphis TV does nothing for the company. I promise you that you will not see any national ad campaign featuring Memphis players. It would be terrible. No one ever heard of these guys. And its bad for the global brand to be associated with such a low program. So this deal makes absolutely no sense and again, there's a reason its the only one of its kind.
That's exactly why it's makes sense and that's exactly the point I'm saying.
You dont get it. $5 million/year to put some Memphis players on local billboards is about $4.95 million over market value. So its an extremely bad business deal for FedEx. Like all-time bad business deal. I dont know how shareholders will approve of this. You can pull this stuff when its your own private company but FedEx has to answer to shareholders.
They have $4.95M somewhere to throw around like that for the time being.
Can care less about shareholders. If it works it works, if doesn't won't see it happening again.
Kudos to Memphis though, Pitt should hit up Acrisure or PNC see if they can pitch in.
It won't "work." Paying the salaries of Memphis players doesn't add money to the FedEx bottom line. This is frivolous spending that FedEx figure their shareholders might not care enough to question. This is not a deal where FedEx expects a return on investment. This is simply a company trying to buy players as if they are a rich fanboy. Dont count on Acrisure or Dick's stepping up. You wont see any other deals like this anywhere.
Are we sure these funds aren't coming from Fred Smith's personal account?
SMF is correct. Getting this by the board would likely be a tough sell, unless the majority are Memphis alums, residents or both.
Isnt Tyson Foods doing the same thing with Arkansas?
Yes, answering to the shareholders is necessary. But this 25 mill might be small potatoes in this behmoths overall goodwill.
SMF is correct. Getting this by the board would likely be a tough sell, unless the majority are Memphis alums, residents or both.
Isnt Tyson Foods doing the same thing with Arkansas?
Yes, answering to the shareholders is necessary. But this 25 mill might be small potatoes in this behmoths overall goodwill.
Not nearly the same at Arkansas. John Tyson, a private citizen, who made a mint S part of the Tyson Chicken family is spearheading efforts. I'm sure the actual company will help in some NIL deals which would be close to market rate but as a public company, they can't enter in above market marketing deals with extremely obscure college athletes who happen to play at Arkansas. This is why the FedEx deal is so surprising. The only way I can see them spin this to shareholders would be:
We believe that it is good business for FedEx if Memphis football and basketball were in a Power 4 league because that would grow the university which would help us attract talent to the company. By buying players for Memphis football and basketball, we expect them to win more and be invited to a P4 league.
That's a huge stretch but about the only way I can see them spinning it.
The expense isn’t deductible. I’m sure the shareholders, which probably include very few Memphis fans, will be less than thrilled. Of course, all the corporations which would like to do this will be pushing Congress to make this a deductible expense. Then we will see corporate logos on college jerseys.
Terrible business decision and ethics…. Meanwhile, FedEx, UPS and Amazon continue 2024 with mass layoffs due to inefficiencies.
FedEx pledges $25 million over 5 years in NIL program for University of Memphis athletes
FedEx has pledged $25 million over the next five years to be used in sponsorship deals with University of Memphis athletes.
apnews.com
That + Virginia passing a law that allows payments to players via NIL means we are about to enter one helluva new era in this sport very soon.
FedEx nets $4 billion per year. I don't think shareholders will bat an eye over $5 mil a year to a city/University that is synonymous with the FedEx brand.
It makes fans like FedEx more. What if Dick's or FNB do that for Pitt? psu should get a lawn mower company to toss money to keep happy their tens of thousands alums who work on lawns
I was wondering if having state schools are paying NIL if other teams can find out how much these schools are paying by using information Act requests.
It makes Memphis fans like FedEx more? That's why they are doing it? A global company headquartered in Memphis is paying Memphis players $5 million/year so that Memphis citizens switch from USPS and UPS? Huh? You are saying that the direct result of buying $5 million worth of players is that FedEx profits in Memphis will increase by $5 million/year?
Its literally to pay the salaries of extremely obscure college athletes that 99.99999% of FedEx shareholders never heard of and dont make a cent for the corporation.
Can we just cut the crap? So this law allows VA schools to directly pay NIL? Uh....how about a law which states you must pay them a salary.....AS EMPLOYEES. How the heck do these colleges get away with this? Imagine if your employer called you into the office on Monday and said we are going to pay you the same amount of money, but its not a salary anymore and you are no longer an employee. We are going to pay you NIL instead.
This might be the best new business model. Dont have any employees. Just have a bunch of people you to pay to work there under NIL.
B. S.
NIL is the Death of College football/sports as we know it ... You Know It and I Know It .......
Only a matter of time before those FOIA's start flying.
Oklahoma, Nebraska, and Lousiana all have similiar legislation pending.
Who cares?
Call me crazy, but I'm not expecting a massive sell-off of FedEx stock when the market opens Monday based on this news.
Sorry to tell you this, but college football has been gone way before NIL and the portal took over.
NIL and Portal has just taken the traditional aspect out of it
The law stipulates that the players are not employees. I think that will be challenged. If that stands, the entire workforce for the universities could be paid by NIL and then no requirement to provide health insurance.
It is such a farce.
PNC would have been perfect last year. The boring bank sponsoring the team with the boring offense.
I don't think it's a huge stretch. College football is pro sports now.
Is it that much different than Bibigo paying the Lakers $25 mil per year to have their corporate logo on the jerseys? Bibigo is not getting a tax deduction for that. I guess the difference is that $25 mil arguably has a more direct effect on Memphis being a better football team, whereas the $25 mil has a lesser effect on helping an NBA team be better given the overall team salary.
It's not new at all. Ever hear of 1099 workers who are independent contractors? There are 10s of millions of these people in the US.
I dont understand how they get away with it? If the Commonwealth of Virginia is allowing Virginia Tech to pay their QB directly but, not a salary of course, but NIL, I dont get how they couldnt do the same for their janitorial staff. Pay them NIL instead of salaries and make a few IG posts with the janitors holding mops to justify the expense.
I understand that but those employees provide a part-time service to a business. A QB works full time. Also, making athletes 1099 contractors is way better than non-employees who are only paid for not what they contribute to the team but for the use of the school to use their name, image, and likness on commercials and billboards.
Gee. The son of the FedEx founder works in...................wait for it...................UPMC South Side Facility and Acrisure Stadium.
Hmmmmmmm...............
Hmmmmmmm...............
Since you don't understand advertising and the use of branding, you shouldn't decide to put your stupid comment with claims I never made. Still a pompous ass. Go charge your toxic taxi.
I dont know why EV's scare the crap out of you. I understand people not feeling they are worth the extra cost or if you are driving to Philly once a week as you say you do but your outright fear is strange.
Also, how much profit in excess of the $5 million spent on Memphis players do you expect FedEx to make IN MEMPHIS because no one outside of Memphis is going to give 2 shits about the players they bought? How many Memphis citizens are going to switch to FexEx because of this?
You need to stop claiming that others post things they never said. The shots about the toxic taxi is just having fun. The EVs % of sales is way off....because they're too costly and inconvenience.
Most of all, you have no idea of "branding" and approval of the people in Memphis. hell, Burghers eat the swill at Primantis because it is a local mess.
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