Published 12/21/2022, 3:20 PM EST
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.
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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.
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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.
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.
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?
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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,”
CHARLOTTE, NORTH CAROLINA – SEPTEMBER 01: NASCAR driver Denny Hamlin speaks with the media during the NASCAR Cup Series Playoff Media Day at Charlotte Convention Center on September 01, 2022 in Charlotte, North Carolina. (Photo by Jared C. Tilton/Getty Images)
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.”
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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.