FedEx extends CART sponsorship deal

The option-laden deal could run for an additional four years, though terms were not disclosed.

"CART is a valuable sports property which has been very effective for FedEx and has provided a multi-media platform to communicate the evolution of FedEx during the last four years," said Brian Philips, FedEx vice president of US marketing. "The sponsorship also has allowed for incremental revenue as well as significant opportunities to build the brand in more than 200 countries."

FedEx took over from PPG Industries in 1998 as CART's title sponsor, but recently grew unhappy with CART's slumping performance in the media. An insider familiar with the negotiations said that FedEx had attempted to extend the deal since April, but was stalled by CART - that delay may have caused the value of the deal to significantly plummet.

However, FedEx has come under criticism because it has done little or no promotion of its alliance with CART, in conspicuous contrast to the media blitz created by its chief rival United Parcel Service (UPS) and its sponsorship of NASCAR driver Dale Jarrett. FedEx says it derives value from the CART sponsorship on a business-to-business level, and the company also transports CART's cars and equipment to the series' five fly-away races.

"FedEx and CART share natural synergies such as speed, teamwork and reliability that have served both organisations well working in concert since 1998," said Joseph Heitzler, CART president and CEO. "We appreciate the support FedEx has provided CART over the past four seasons and we look forward to continuing to work together to achieve our goal of building the CART FedEx Championship Series into one of the world's leading sports entertainment properties."