04/18/24
May 19, 2007
AT&T wins injunction, but NASCAR is granted stay: ,Dispute over former Cingular sponsorship of Burton
posted by Folkways to auto racing at 08:18 AM - 6 comments
Got to agree with you, Folkways. What makes the difference? NASCAR started to go downhill after R.J. Reynolds pulled out. I think fans care more about a good race with a green flag finish than the name on the car. Bud and Miller sponsorships ran side by side and the earth still spins. (yeah, yeah, I know all the legal/business arguements here, but sheesh!)
posted by steelergirl at 09:16 AM on May 19, 2007
The difference here is the exclusivity agreement given to Nextel when it became the title sponsor for the series. Cingular (and Alltel) were grandfathered in because of existing sponsorships, but the contract precludes anyone else moving in on the $700M investment of Nextel. However, I'm pretty baffled as to what the argument is here. It seems to me if NASCAR and Nextel had written into the agreement that one company being taken over as another wouldn't fall under the grandfather clause, this would be open and shut. No addition of new names or brands -- yough nuts. Instead, AT&T can simply say, "Cingular has become AT&T, and we now share the car," and I don't think there's a damned thing anyone can do about it.
posted by wfrazerjr at 09:40 AM on May 19, 2007
Put anything you want on the car. Nascar is now going the same way as the other pro sports. Any and everything goes to court. Lets race.
posted by Ironhead at 11:16 AM on May 19, 2007
Jeff Burton is in fact running the at&t logo on his car in the All-Star race. Read into that what you will.
posted by mr_crash_davis at 09:17 PM on May 19, 2007
NASCAR had no real choice but to support its major sponsor. Despite the initial ruling, much of the legal commentary that has been written on the case has suggested that NASCAR is favored. Certainly, as even this court ruling implied, if NASCAR loses the case it will have to refund Nextel/Sprint a significant amount of money, because the contract between NASCAR and Sprint/Nextel is very clear on this matter. And this is certainly not indicative of any change in NASCAR, which has been involved in legal battles for eons.
posted by spira at 09:53 PM on May 20, 2007
NASCAR already has competing sponsorships in the war of Beer, Home improvement companies, and many others. It seems a bit silly to think NASCAR could stop AT&T’s logo replacing Cingular on Burtons 31 car now that AT&T has bought the cell phone company. Just because Sprint/Nextel is the title sponsor of the “Cup” series did they really think they had a foot to stand on in a court of law?