FedEx ends 21-year Orange Bowl sponsorship
FedEx announced today that it was ending it’s twenty-one year long sponsorship of the Orange Bowl. FedEx executives decided that it was not in the company’s best financial interest to continue sponsoring the bowl game.
The change of heart from FedEx stems from the result of ESPN taking over broadcasting rights of BCS games from FOX Broadcasting Company beginning in 2011. ESPN purchased the BCS rights to sell sponsorship and advertising for the football games at the price of $425 million and expected FedEx to give more money to them in exchange for wider and longer advertising slots throughout the entire college football season.
While it will take some time to get used to seeing a new sponsor for the Battle by the Beach, it is not that difficult to see FedEx’s point of view. The Orange Bowl has seen its attendance slip drastically with each passing year. The 2010 contest between Iowa and Virginia Tech had the lowest TV ratings ever of any BCS bowl game. The Sports Business Journal reports that the Orange Bowl committee is selling the sponsorship for $20 million annually over the next four years. And who’s going to spend that on a failing bowl game?
