Kyle Busch and his sponsor conundrum was one of the most unfortunate stories of 2022. The two-time Cup Series Champion was sacked by Joe Gibbs Racing because his primary sponsor backed out. Moreover, Kyle Busch Motorsports had to switch manufacturers from Toyota to Chevrolet. Now, it looks like Denny Hamlin might bear witness to similar turmoil.
ADVERTISEMENT
Article continues below this ad
Hamlin’s primary sponsor, FedEx, has announced a piece of seriously unfortunate news, and it could mean bad news for him. It is also possible that he may get sacked by JGR.
DIVE DEEPER
ADVERTISEMENT
Article continues below this ad
In a recent Tweet, NASCAR journalist Adam Stern quoted a CNBC article, “FedEx said Tuesday that its quarterly earnings and sales fell from a year ago and warned of ongoing weakened demand, but said its ‘aggressive’ cost-cutting measures were softening the blow.” This is pretty scary news for Denny because FedEx clearly mentioned their plans for cost-cutting.
This is going to keep happening while teams charge 5+ mill a year in sponsorship
— Brandon Zimmerman (@BZx65x) December 20, 2022
And the first thing that comes to mind when they talk about cost-cutting is pulling out of sponsorship deals with sportspersons. As NASCAR is not the highest revenue-generating sport in the USA, it may drive FedEx towards such a step. Nothing has been made final yet, and Hamlin may continue to be backed by FedEx.
However, the fans do not seem too optimistic.
Sponsors would love to only pay $5 mil a year in sponsorship. Much closer to $20 mil
— Josh Jarnagin (@JoshJarnagin) December 21, 2022
Something tells me JGR is losing another long time sponsor.
— Carson Biggerstaff (@CarsonMB1611) December 21, 2022
FedEx could decide not to renew its contract or cut back on number of races. I don’t think anything changes for this coming year as under contract
— John Haas (@JohnHaas1984) December 20, 2022
Welp this might be it, already getting ready to root for Erik Jones if this is it
— Sir Relkinstein (@sirrelkinstein) December 20, 2022
Joe Gibbs Racing is no stranger to firing accomplished drivers when their sponsors stop the cash flow. But Hamlin getting sacked will certainly tarnish JGR’s reputation further.
What will FedEx’s plans for Denny Hamlin?
ADVERTISEMENT
Article continues below this ad
There is still no surety about how the delivery giant will proceed with Hamlin’s sponsorship. The only surety is that they are definitely going to look for a way to cut costs. As per the CNBC article, FedEx’s CFO Mike Lenz said in an earnings release, “Our teams have an unwavering focus on rapidly implementing cost savings to improve profitability,”
The CFO further added, “As we look to the second half of our fiscal year, we are accelerating our progress on cost actions, helping to offset continued global volume softness.”
ADVERTISEMENT
Article continues below this ad
WATCH THIS STORY: Denny Hamlin Leaves NASCAR Fans in a Frenzy After Boasting Partner Michael Jordan’s Signature Collection
It seems like their research is already underway. Soon, we will get some clarity on Hamlin’s future. Till then, guessing games will have to suffice. Which path would JGR take if FedEx goes ahead with the move? Do share your opinions in comments below.