The Memphis Grizzlies announced on Wednesday that its $250 million, 18,400-seat arena scheduled to open in 2004 will be called FedExForum.

The naming rights deal with Federal Express, the world's largest international express shipping company that is also headquartered in Memphis, Tenn., is for 20 years and is valued at approximately $90 million. At that price, it would be the second largest annual naming rights deal for a professional basketball facility behind the Staples Center in Los Angeles, which is worth $5.8 million per year.

With the deal, Federal Express becomes only the third company, American Airlines and Compaq are the others, to have naming rights on two major sports facilities. The shipping company is already paying $7.6 million a year for the naming rights on FedEx Field, the home of the Washington Redskins.

"Obviously this gives us a chance to be more competitive," said Grizzlies president Jerry West. "In a small market like ours, we need to tap every resource not only to succeed financially, but to win games. With a deal like this, we can say we have the ability to keep the players that we want to keep and afford the players that we might want to go after."

Although part of the original discussion over the naming rights included the possibility of changing the team's name to the Memphis Express, Mike Glenn, executive vice president of market development for Federal Express, said the naming rights to the nickname were not included in the deal. "That has been put on hold at the request of the league office," Glenn said. "If it becomes a possibility, we would be happy to entertain it, but I can't see it happening in the near term."

Glenn said the company decided to purchase naming rights to their second major sports facility because "it provides an excellent return to the shareholders."

Federal Express is a title sponsor of the Orange Bowl game, the St. Jude Classic and the CART series. Its deal with CART expires at the end of the year and there is speculation that the company will not renew its $5 million annual investment in the series.

"We're focusing on the three races we have left," Glenn said.

Darren Rovell, who covers sports business for ESPN.com, can be reached at Darren.rovell@espnpub.com.