W
Ward Burton
Guest
CHARLOTTE, N.C. (AP) -- A report that wireless giant Nextel Communications is the leading contender to become the title sponsor of NASCAR's top racing series is "fundamentally premature,'' NASCAR chairman Bill France said Wednesday.
France said discussions are still ongoing with four or five different companies to replace R.J. Reynolds Tobacco Co., which sponsors the Winston Cup.
"It is fundamentally premature to say we are in final negotiations with anyone,'' France told The Associated Press. " We're still talking to several people and have not finalized anything with anyone.''
Like many in racing circles, Don Miller, president of Penske Racing South, has heard Nextel may be near a deal with NASCAR. Penske driver Ryan Newman's No. 12 Dodges are sponsored by Nextel competitor Alltel.
"We've been hearing for the last few weeks that Nextel had emerged as the top candidate and now we understand they are in final negotiations,'' Miller said. "I don't think the deal is 100 percent complete but it's definitely in final negotiations and NASCAR knows we know about it.''
Nextel spokeswoman Laura Fleischmann said in a statement, "Nextel is approached everyday by different organizations for sponsorship requests. As a matter of policy, we don't discuss these types of requests unless the relationship is consummated.''
NASCAR is also believed to be talking to Visa and Coca-Cola, and McDonald's has admitted interest in sponsoring the racing series.
Nextel is known among cell phone providers for its "push-to-talk'' feature, which allows people to use their cell phones like walkie-talkies. The company has 11 million customers, but is expected to face increased competition as other wireless providers add similar features to their phones.
NASCAR has been searching for a new top sponsor since RJR gave the sanctioning body permission to find another backer last winter.
The decision came just one year after RJR signed a five-year renewal of its sponsorship deal, which is estimated to cost the company between $15 million and $40 million annually.
RJR blamed the decision on poor earnings. The cigarette maker reported losses of $59 million in the fourth quarter of 2002.
The company also has been limited in how it can use its sponsorship by the 1998 master settlement of state lawsuits against the tobacco industry.
RJR's departure would end a 33-year sponsorship relationship with NASCAR that long has been viewed as a gold standard in sports. NASCAR has a reputation for ensuring that its sponsors derive value from the sport, and NASCAR fans are famous for their sponsor loyalty.
With nearly every major national consumer brand somehow involved in NASCAR, there has been much speculation about how NASCAR will handle potential conflicts such as a Pepsi-sponsored driver winning the Coca-Cola Cup.
Miller said his racing team foresees no problems.
"I look at it as if you had a Coors Light or Miller Light car running in the Busch series,'' he said."But we aren't going to have any problem with the Alltel car winning the Nextel Cup.''
France said discussions are still ongoing with four or five different companies to replace R.J. Reynolds Tobacco Co., which sponsors the Winston Cup.
"It is fundamentally premature to say we are in final negotiations with anyone,'' France told The Associated Press. " We're still talking to several people and have not finalized anything with anyone.''
Like many in racing circles, Don Miller, president of Penske Racing South, has heard Nextel may be near a deal with NASCAR. Penske driver Ryan Newman's No. 12 Dodges are sponsored by Nextel competitor Alltel.
"We've been hearing for the last few weeks that Nextel had emerged as the top candidate and now we understand they are in final negotiations,'' Miller said. "I don't think the deal is 100 percent complete but it's definitely in final negotiations and NASCAR knows we know about it.''
Nextel spokeswoman Laura Fleischmann said in a statement, "Nextel is approached everyday by different organizations for sponsorship requests. As a matter of policy, we don't discuss these types of requests unless the relationship is consummated.''
NASCAR is also believed to be talking to Visa and Coca-Cola, and McDonald's has admitted interest in sponsoring the racing series.
Nextel is known among cell phone providers for its "push-to-talk'' feature, which allows people to use their cell phones like walkie-talkies. The company has 11 million customers, but is expected to face increased competition as other wireless providers add similar features to their phones.
NASCAR has been searching for a new top sponsor since RJR gave the sanctioning body permission to find another backer last winter.
The decision came just one year after RJR signed a five-year renewal of its sponsorship deal, which is estimated to cost the company between $15 million and $40 million annually.
RJR blamed the decision on poor earnings. The cigarette maker reported losses of $59 million in the fourth quarter of 2002.
The company also has been limited in how it can use its sponsorship by the 1998 master settlement of state lawsuits against the tobacco industry.
RJR's departure would end a 33-year sponsorship relationship with NASCAR that long has been viewed as a gold standard in sports. NASCAR has a reputation for ensuring that its sponsors derive value from the sport, and NASCAR fans are famous for their sponsor loyalty.
With nearly every major national consumer brand somehow involved in NASCAR, there has been much speculation about how NASCAR will handle potential conflicts such as a Pepsi-sponsored driver winning the Coca-Cola Cup.
Miller said his racing team foresees no problems.
"I look at it as if you had a Coors Light or Miller Light car running in the Busch series,'' he said."But we aren't going to have any problem with the Alltel car winning the Nextel Cup.''