FedEx announced a major name, image and likeness (NIL) deal for University of Memphis athletes Friday morning that could significantly bolster the trajectory of the school's entire athletic department.

The Memphis-based logistics giant is pledging $5 million a year for the next five years. The money has been earmarked specifically for the football, men's and women's basketball and other women's athletic programs. How the infusion of NIL funding is divvied up is unclear.

"This is a massive example of what NIL was intended to be and can be, but it’s done the right way with the right kind of infrastructure from a Fortune 50 (500) company to hometown student-athletes," Memphis athletic director Laird Veatch said in an interview with The Commercial Appeal. "Really, I don’t think there’s another deal that we’re aware of that is this size or the scope across multiple programs and across multiple years."

The agreement represents the first major NIL deal between a company of FedEx's size and the University of Memphis since the NIL market for college athletes was created in 2021.

FedEx — which was founded in Memphis and is the largest employer in the state — is committing the money at a time when the athletic department already has significant momentum. Thanks in large part to a $50 million donation from FedEx founder Fred Smith and his family, the university is moving forward on a $220 million renovation of Simmons Bank Liberty Stadium, where the Tigers' football team plays its home games.

Smith and FedEx have long been a pillar of the Bluff City sports scene. The Memphis Grizzlies and Tigers' men's basketball team play at FedExForum, while the Tigers' baseball team plays at FedExPark. FedEx also has a sponsorship deal with the United Football League and its local team, the Memphis Showboats. The company's status as the university athletic department's biggest corporate sponsor will not change as a result of its NIL efforts.

Veatch, during an interview on 929 ESPN-FM Friday morning, said he hopes FedEx's move will inspire other Memphis-based companies to consider similar initiatives.

The annual $5 million NIL contribution from FedEx also includes a 50% match clause, according to Veatch. He said the university will start a campaign to raise an additional $2.5 million per year, and "we believe that is very attainable based on where we’ve been in the past."

“It does elevate us to a highly competitive NIL space, and it’s something that’s sustainable at the same time,” Veatch said. “If you ask many athletic directors around the country, I don’t know that they’d be in a position to say that.”

FedEx will work with Altius Sports Partners — a company that helps facilitate NIL deals between schools and athletes — to determine how the money is allocated among the Tigers' programs and student-athletes.

“We evaluated the evolving NIL landscape, exploring how we can best deliver positive impact to student-athletes and connect them to meaningful opportunities for both themselves and the community and made the decision to reallocate marketing funds to an NIL platform,” Brian Philips, EVP & CMO at FedEx, said in a news release. “This gives us an opportunity to invest in bright, young athletes in our great hometown of Memphis, strengthening our connection to the next generation of leaders.”

University officials have not been shy about their efforts to move Memphis out of the American Athletic Conference and into a "power" league. Part of the impetus for the stadium renovation deal was to help attract another conference to add Memphis, and Friday's announcement means the Tigers could almost immediately improve in a variety of sports on a separate but critical front.

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The NIL windfall likely will set Memphis apart from any of its AAC peers, especially with SMU leaving for the ACC at the end of the school year.

The announcement is timely because Memphis football's spring game is set for Saturday (3 p.m. kickoff) at Simmons Bank Liberty Stadium. FedEx will host an "NIL initiative" and a tailgate at the game featuring the Tigers' women's soccer team, which reached the NCAA tournament's round of 16 last season.

Commercial Appeal columnist Mark Giannotto contributed to this report.

Reach sports writer Jason Munz at jason.munz@commercialappeal.com or follow him @munzly on X, the social media app formerly known as Twitter. Reach sports writer Jonah Dylan at jonah.dylan@commercialappeal.com or on X @thejonahdylan.

This article originally appeared on Memphis Commercial Appeal: FedEx unveils 'massive' NIL deal worth millions with Memphis athletics