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The Green Behind the Greens

by Josh Sens

Aug 24 2007

Follow the money in the FedEx Cup.

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FedEx is paying an estimated $44 million a year to sponsor the FedEx Cup, Golf Digest reports. Its entire sponsorship portfolio adds up to more than $100 million a year, according to the research firm IEG. This includes naming rights to FedEx Field, home of the Washington Redskins ($7.6 million), and the FedEx Forum, home of the Memphis Grizzlies ($4.5 million).

Is sports sponsorship worth the money? FedEx pays up to $13 million a year to affix its name to the Orange Bowl’s official title. According to Front Row Marketing Services, which analyzes brand appearances on TV, the FedEx logo appeared onscreen 375 times and for 38 minutes during the Orange Bowl broadcast in January. The equivalent time in network-TV advertising would have cost the company more than $40 million.

Big sponsor bucks can’t guarantee big ratings. The FedEx Cup is modeled on Nascar’s Chase for the Nextel Cup. When the series began in 2004, TV ratings shot up but have since sunk almost to pre-Chase levels.

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