The stunt was cancelled after outraged fans and alumni bombarded the school with complaints.
Now, we all know that Fed Ex is a huge economic engine in the city of Memphis, and probably is a benefactor for the school. But considering college athletes are supposed to be unpaid amateurs, this marketing gimmick might have given off a sense of impropriety. It's probably best for both parties that it didn't go through.
However, Fed Ex could consider doing something similar for the pro team in town, the NBA's Memphis Grizzlies, and best of all I hear that good seats are always available to their home games.