Joe Gibbs Racing is facing a major blow as FedEx, their long-time sponsor, is expected to reduce its sponsorship presence with the team after this season, and may even exit the deal entirely ¹. This move would mark the end of one of the most successful driver-sponsor combinations in NASCAR history.
FedEx has been a major sponsor of Joe Gibbs Racing since 2005, spending close to $25 million per year in rights fees at its peak. However, in recent years, the company has been cutting back on its sponsorship, and this season, it has only appeared as the primary sponsor 10 times, including the upcoming weekend’s race at Kansas Speedway.
The team has been searching for new sponsors for the No. 11 car, driven by Denny Hamlin, in anticipation of FedEx dropping more, or possibly all, of its remaining primary positions. While Joe Gibbs Racing has found other sponsors, such as Mavis Tires & Brakes, Sport Clips, Interstate Batteries, and Yahoo, it’s unclear whether they’ve been able to recoup the same level of revenue per race as FedEx spent.
FedEx’s decision to reduce its sponsorship presence is part of a broader cost-cutting drive, as the company aims to cut $4 billion in costs by fiscal 2025. The company’s stock is up 6% this year, but it recently missed analyst expectations for earnings per share and cut its full-year revenue guidance due to softness in dema
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