The University of Memphis, currently a member of the American Athletic Conference, wants to make the jump up to the “Power 5” and join the Big 12. Delivery giant FedEx, headquartered in Memphis, has augmented the university’s promises with some commitments of their own to help sweeten the pot for the Big 12.
According to John Trotter of ESPN, University of Memphis President David Rudd has promised the Big 12 a $500 million investment over the next five years in academic and athletic infrastructure to bring the institution on-par with other Big 12 schools. Whether Rudd did so knowing that FedEx would be augmenting his commitments is unclear, but the timing suggests that there may have been some coordination.
FedEx Bolsters Memphis Bid to Join Big 12
FedEx Chief Executive Officer Fred Smith, a Tulane alumnus, has committed to make adding Memphis to the Big 12 more lucrative in a couple of ways. He stated that FedEx would be interested in becoming a “major sponsor” of the conference’s basketball and football, as well as bid to become the title sponsor of a potential Big 12 football conference championship game.
The play for Memphis is obvious. Becoming part of the Big 12 means a huge uptick in revenue in comparison to what the university is receiving as a member of the AAC. The increased exposure as a member of a Power 5 conference is also nothing to be taken lightly.
FedEx’s interests are closely aligned, being headquartered in Memphis. Think of it along the lines of the rising tide lifts all ships cliché. A more prolific University of Memphis attracts better talent to the city’s workforce, some of which FedEx will be able to pilfer. Being a major sponsor of the two revenue sports, if not the title sponsor of the football championship game, would mean huge exposure for FedEx’s brand as well.
The probability of the Big 12 accepting Memphis and on what timetable is unclear, however. We should know more after the conference’s university presidents and athletic directors meet on May 31 in Texas, but for now the answers we have been getting are non-answers. Expansion is being studied, but no action is imminent.
Meanwhile, the Big 12’s course of action to compete with other Power 5 conferences in terms of revenue is clear. Getting to 12 schools, adding a football conference championship game and having a dedicated network are all perceived deficits for the conference. The first two of those goals will be much easier than the third for the Big 12, as explained earlier.
There has also been reported interest in moving to the Big 12 from the University of Houston, Colorado State University and the University of Central Florida. While there is some logic for the Big 12 behind each potential addition, at this point Memphis is the only bid which comes with millions of dollars in new sponsorship revenue attached.
The question of where the Big 12 expands will eventually be answered by which two schools make the most cents for the conference. FedEx’s commitments make the bait that Memphis has put out on the line for the Big 12 much more enticing.
