The Washington Post reported on Wednesday morning that FedEx has made the decision to end the agreement to have its name on the Washington Commanders stadium.
In 1999, FedEx signed a 27-year, $205 million deal (roughly $7.6 million per year), that allowed them to exit the deal based upon the change in ownership. Overall, the FedEx exit will cost the Commanders just over $15 million in revenue that they will likely look to make up with a new deal that would begin this season.
In what was likely a strategic news release on Tuesday, the Commanders announced additional upgrades to the stadium, bringing targeted investments in improving the stadium and fan and player experience to a total of more than $75 million once completed, since new ownership purchased the team in July.
The Commanders are hopeful for a brighter future with new ownership recently making hires for the General Manager and Head Coaching positions with the team. “My partners and I entered this offseason intent on hiring elite candidates to shape the next chapter of Commanders football and I believe we did just that – first with Adam Peters and now by welcoming the highly respected Dan Quinn as our head coach,” Josh Harris, Managing Partner of the Washington Commanders, said.
The new salary cap was released by the NFL earlier this month and the Commanders now have approximately $87 million, according to Over The Cap. They are number one in the league in terms of cap space heading into free agency along with the second pick in the NFL Draft.