Nascar wants to kick all communication companies out of the series:

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RobbyG Fan

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ATLANTA (AP) -- NASCAR filed a $100 million counter claim against AT&T Inc. on Sunday, accusing the wireless provider of interfering with its exclusive sponsorship agreement with rival wireless company Nextel.

The suit also asks that NASCAR be granted the right to kick AT&T -- and all telecommunications companies other than Nextel -- out of its top series in 2008.
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Yeah, Nascar really cares about the teams, drivers, and crews. :rolleyes:



They only care about the size of their wallets.
 
I don't think the court is going to make that ruling for Nascar. The fact remains that Nascar signed grandfather agreements with RCR and Penske to allow the Cingular and Alltell sponsorships to remain despite the exclusivity agreement with Nextel.

And now Nascar is going to have to live with those contracts. It is possible that Nascar may present a better legal argument than it has so far, but unless it does, it's looking like the existing ruling on the injunction is going to remain.

But Nascar is doing this because Nextel paid $750 million to be the series' top sponsor. As part of that agreement, all other telecom companies were to be excluded. That's when Nascar, concerned about the existing sponsorship agreements that RCR and Penske had, created the grandfather agreements with those teams. Nascar thought it was clear that the companies couldn't change their names, but the agreement didn't quite say that. So Cingular changed its name to AT&t despite Nascar having told it that it could not, it really angered Nascar. But the court found that the grandfather agreement didn't limit Cingular to a particular name.

The idea that Nascar can claim damages for AT&T's use of its logo after the court ruled that it could is not going to be successful. But if the court or appellate court were to find the grandfather clauses no longer valid, all other telecom companies would kicked out because that's what the 2003 agreement with Nextel calls for.

None of this is new.
 
I think a judge will throw it out when he sees 100 million. LOL
 
Yeah, I don't see it goin very far either. I can't even believe NASCAR, or should I say "The France Family" is trying to pull this stuff. There's enough money out there for everyone...
 
Nextel is going for world domination in the communication industry. NASCAR might not have a whole lot to do with it. They want all the money and don't care where it comes from.
 
Nascar is walking a fine line here.......i think this hurts the sport more than it does...i think it'll make some companies think twice before they consider investing into nascar.
 
This Buds For Me said:
Nascar is walking a fine line here.......i think this hurts the sport more than it does...i think it'll make some companies think twice before they consider investing into nascar.
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I don't think it's that big of a deal for other companies. The series sponsor, the tire manfucturer and the fuel provider are the only areas where there are exclusivity agreements. Otherwise, it's pretty open (except where laws prohibit it- like with tobacco).

Companies big enough to afford a Nascar sponsorship are sophisticated enough, IMO, to understand what's going on here and that it is a very limited situation. They have lawyers, they understand that this is a contractual spat.

Nascar is still some of the best bang for your marketing buck in all of sports. I don't think it will scare anybody off - unless you're in the market in one of the few areas where exclusivity applies.

Just my take on it...
 
sledge said:
Nextel is going for world domination in the communication industry. NASCAR might not have a whole lot to do with it. They want all the money and don't care where it comes from.
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I don't like Nextel's service and they are way too pricey. So no I won't have Nextel. As a matter of fact I have Verizon and I don't think they even sponsor anything in Nascar.
 
tkj24 said:
I don't like Nextel's service and they are way too pricey. So no I won't have Nextel. As a matter of fact I have Verizon and I don't think they even sponsor anything in Nascar.
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I switched from Nextel to At&T, much better service, Nextel was horrible and i had to threaten to take them to court to get out of my contract that i never agreed to in the first place. Very poor customer service and expensive, so far At&T is the best, and i have tried them all, including Verizon which sucks almost as bad as Nextel.
 
Mopardh9 said:
I switched from Nextel to At&T, much better service, Nextel was horrible and i had to threaten to take them to court to get out of my contract that i never agreed to in the first place. Very poor customer service and expensive, so far At&T is the best, and i have tried them all, including Verizon which sucks almost as bad as Nextel.
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Before Verizon I had Cingular. There were too many places I couldn't get service. Cingular is the NEW AT&T.
 
SuperChuck5 said:
I don't think it's that big of a deal for other companies. The series sponsor, the tire manfucturer and the fuel provider are the only areas where there are exclusivity agreements. Otherwise, it's pretty open (except where laws prohibit it- like with tobacco).

Companies big enough to afford a Nascar sponsorship are sophisticated enough, IMO, to understand what's going on here and that it is a very limited situation. They have lawyers, they understand that this is a contractual spat.

Nascar is still some of the best bang for your marketing buck in all of sports. I don't think it will scare anybody off - unless you're in the market in one of the few areas where exclusivity applies.

Just my take on it...
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The question is where does it stop? They may only have these agreements with the industries you mentioned, but what nascar has done is opened the door to other companies to demand exclusive agreements with nascar if they want their sponsorship.
 
This Buds For Me said:
The question is where does it stop? They may only have these agreements with the industries you mentioned, but what nascar has done is opened the door to other companies to demand exclusive agreements with nascar if they want their sponsorship.
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Right where does it stop and where do you draw the line? Get the damn corporations out of the title sponsorship, Nascar has enough money to sponsor itself. Then there would be none of this BS.....just my 2 cents.
 
Mopardh9 said:
Right where does it stop and where do you draw the line? Get the damn corporations out of the title sponsorship, Nascar has enough money to sponsor itself. Then there would be none of this BS.....just my 2 cents.
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What?????? You think they are going to spend their money? You must be nuts.
 
tkj24 said:
What?????? You think they are going to spend their money? You must be nuts.
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Nuts no a little crazy and sly like a fox yes. Come on the writing is on the wall, if they don't have ONE SINGLE Corporate sponsor there are none of these lawsuits, better for the sport , everyone wins , including Nascar.:growl:
 
This Buds For Me said:
The question is where does it stop? They may only have these agreements with the industries you mentioned, but what nascar has done is opened the door to other companies to demand exclusive agreements with nascar if they want their sponsorship.
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I get your point, but I just don't see that happening that often. First, the company would have to get that agreement from Nascar, not a team. So none of the team sponsors could make that demand because the teams aren't able to give it. So you'd only be dealing with those sponsors (there don't seem to be that many) whose sponsorship is series-wide.

Note also that these exclusivity agreements don't affect television advertising.

Also, that presumes that Nascar would freely give exclusivity in those situations. I don't think it would and I dont' think it needs to. The case of the overall series sponsor really is a limited situation, IMO. It doesnt' happen that often. And for $750 million! You can be sure Nextel wants exclusivity. But I'm not sure who else is going to demand it and be willing to pay that kind of money.

But you do have a point. I just dont' see it happening. I guess time will tell.
 
Mopardh9 said:
Right where does it stop and where do you draw the line? Get the damn corporations out of the title sponsorship, Nascar has enough money to sponsor itself. Then there would be none of this BS.....just my 2 cents.
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The television rights and the "naming" rights to the series are the two biggest things Nascar has to sell. That's where its big money comes from. So not selling the series sponsorship just means that Nascar would be cutting out a big portion of its money making ability. I don't get what would be served by not selling the naming rights. They just need to be much more clear about it when they execute the contracts. All of this should have already been taken care of. It's bad lawyering on the part of Nascar and Nextel. If they wanted to limit Cingular to a specific name, they should have done so in the contract. Its that simple.
 
SuperChuck5 said:
I get your point, but I just don't see that happening that often. First, the company would have to get that agreement from Nascar, not a team. So none of the team sponsors could make that demand because the teams aren't able to give it. So you'd only be dealing with those sponsors (there don't seem to be that many) whose sponsorship is series-wide.

Note also that these exclusivity agreements don't affect television advertising.

Also, that presumes that Nascar would freely give exclusivity in those situations. I don't think it would and I dont' think it needs to. The case of the overall series sponsor really is a limited situation, IMO. It doesnt' happen that often. And for $750 million! You can be sure Nextel wants exclusivity. But I'm not sure who else is going to demand it and be willing to pay that kind of money.

But you do have a point. I just dont' see it happening. I guess time will tell.
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I thought Nextel put up only 10 mil for the sponsorship?
 
exactly!!

it considers exclusivity to be very much what it paid soooo much money for. that's why it is so motivated about this. and has nascar under the gun.
 
SuperChuck5 said:
exactly!!

it considers exclusivity to be very much what it paid soooo much money for. that's why it is so motivated about this. and has nascar under the gun.
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Well Nascar didn't do their homework on this one did they?:D
 
All the more reason i like local saturday night racing at the 1/2 mile and 5/8 mile tracks in my area.
 
And yet, when it was the Winston Cup, you still had other tobacco brands on cars --- no one cried foul.

When Unocal was the gas supplier, I do believe there were other gasoline sponsors on cars at the same time --- no one cried foul.

Now, Sunoco is the official supplier and brags in their commercials that I can buy the same fuel --- not unless I live on the East Coast.
I can't even get Nextel service here in East Texas.
 
RobbyG Fan said:
Yeah, Nascar really cares about the teams, drivers, and crews. :rolleyes: They only care about the size of their wallets.
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RobbieG, I take exception with your remark.
Week after week you criticize and condemn NASCAR, usually without logical commentary.

Please consider this. It was the France Family who created the jobs for people you mention NASCAR "really cares about", in your sarcastic manner.
It is NASCAR who brought this sport from the bullrings from New York State to Florida and the rest of the United States.
It was NASCAR who got the sport on television which led the sport to major corporation board rooms selling tobacco to detergents.
It is NASCAR that tries to keep a good image (although they do fail on occasion) and maintain a family sporting atmosphere.
It is NASCAR that brought sponsors to underfunded teams that otherwise might never have been able to continue racing during the lean years.

NASCAR is a business. No matter who owns it, it is a business.
Of course NASCAR and the France Family care about their wallets. They are the corporation unto themselves and since it was their idea, execution of the plan and the family money they gambled, the France Family deserve what they can make.

NASCAR has made some questionable calls and decisions in sanctioning races.
The team owners, teams, sponsors, drivers and fans know it.
Why does anyone think the compliment was presented about Bill France, Jr at his memorial service, being a "benevolent dictator"????
Because he was a "benelovent dictator".
Bill France, jr. took care of those within the NASCAR community who needed help, most the average race fan will never know about.
Bill France, Jr. has made decisions that favor one driver or team.
Bill France,Jr. did it to keep people coming to the races.
Members of the NASCAR racing community knew and went along with it.

Those that didn't or wouldn't, left. Most who left, tried to regain favor with the "benevolent dictator". Those that regained entry were grateful and played by his rules.
That is how the game is played, not just in NASCAR but at work, in sports and in politics.

Yes, NASCAR is thinking about their wallet.
Yes, NASCAR is making money.
Yes, NASCAR does make changes as things take place, but since NASCAR owns the show, they can do those things.

OR, NASCAR could become what CART became and a few race team owners take the reins and possibly ruin the entire thing.
With that example and possibility on the line, I'll stick with the "benevolent dictator" policy. I might not like it, therefore will not criticize it after each each race but reserve the right to do so on rare occasions.
Keep in mind, NASCAR is better than anything else out there today.

I might ask of those who constantly criticize NASCAR, reconsider your position.
Repeated posts of a negative nature make me wonder why those who criticize each week would bother wasting time complaining if it upsets them that much.
Granted there are times criticisim is justified, but it begins to grate when it becomes the same tune played on the same fiddle by the same player. And all are out of tune.

Just one more thought from the old man in Wake Forest. :)
 
No sponsors should be barred. Sponsorship should be open to all. Nascar should have laid down those rules when Nextel was bidding on the Series name.
 
The fact remains that Nascar did seek to protect the existing sponsors by striking a deal for the grandfather agreement. The evidence clearly indicates that Nascar was concerned that Nextel wanted to give Cingular and Alltell the boot and Nascar didn't want to put RCR and Penske in a bind. So it negotiated with Nextel to allow the grandfather agreement.

Apparently Nextel thought it was going to be limited to the names, not just the companies (Nextel knew that AT&T owned Cingular). But if the goal was to keep it limited to the names, somebody screwed up and didn't draft the agreement in that way. It is likley that it was Nascar that dropped the ball there- and now Nextel feels the value it's getting for its $750 million is being diminished. That's what's driving this.

Nascar wanted to protect the existing sponsorships, the problem was that they didn't get everybody on the same page. And now they're paying the price.

This is lesson to everybody that it doesn't matter whether you're Joe Blow or a multi-billion company. You need to look over every agreement you sign and make sure it says exactly what you think it says or expected it to say. Because if you just presume everything's hunky dory and don't want to cause any trouble- stuff like this happens down the road.
 
SuperChuck5 said:
Apparently Nextel thought it was going to be limited to the names, not just the companies (Nextel knew that AT&T owned Cingular).

Nascar wanted to protect the existing sponsorships, the problem was that they didn't get everybody on the same page. And now they're paying the price.

This is lesson to everybody that it doesn't matter whether you're Joe Blow or a multi-billion company. You need to look over every agreement you sign and make sure it says exactly what you think it says or expected it to say. Because if you just presume everything's hunky dory and don't want to cause any trouble- stuff like this happens down the road.
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AT&T did NOT own Cingular at the time of the NEXTEL agreement, Bell South did.
 
kat2220 said:
AT&T did NOT own Cingular at the time of the NEXTEL agreement, Bell South did.
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Actually, its a bit more complicated than that.

Cingular was created as a wireless joint venture between BellSouth and SBC Communications.
http://news.com.com/2100-1033-246656.html

In 2005, SBC acquired AT&T - but kept the name AT&T for brand recognition.
http://sbc.merger-news.com/materials/am.html

In late 2006 AT&T merged with BellSouth to become just AT&T
http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=22140


So based on that history, the company that is AT&T Mobility LLC today (which is simply Cingular LLC with a name change) is owned by the same people who created it and always owned it- SBC and BellSouth- both of which now fall under the name AT&T.

Its the same company, with the same owners, only a different name. This was an important part of the federal judge's ruling.
 
Monday, June 18, 2007
After NASCAR files suit, AT&T announces extension with RCR

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Associated Press

ATLANTA -- One day after NASCAR made a legal request for permission to remove AT&T from the Nextel Cup series in 2008, AT&T made a strong statement it plans to stick around.


AT&T announced it has exercised an option for a three-year extension with Richard Childress Racing to remain the primary sponsor of Jeff Burton's No. 31 car through the 2010 season. Financial terms were not announced.


Burton, meanwhile, has agreed on a contract extension with RCR.


AT&T's announcement followed another legal move by NASCAR, which continues to try to protect its 10-year, $700 million primary sponsorship deal with Nextel. NASCAR claims the arrangement was designed to give Nextel exclusive rights among telecommunications companies.


Cingular and Alltel had previous sponsorship deals which thus far have been protected by the courts. U.S. District Judge Marvin Shoob issued a preliminary injunction last month that allowed the Cingular logos on Burton's Chevrolet to be changed to AT&T markings.


Shoob also barred NASCAR and any entity affiliated with it from interfering with AT&T's rights as primary sponsor of the car in the Nextel Cup series.


On Sunday, NASCAR asked for a minimum of $100 million in damages in a counter claim against AT&T Inc.


The suit also asks that NASCAR be granted the right to kick AT&T -- and all telecommunications companies other than Nextel -- out of its top series in 2008.


NASCAR alleges breach of contract, fraud and misrepresentation, and conspiracy to aid and abet wrongful interference with Nextel.


AT&T showed Monday it will continue to make plans to remain in NASCAR's premier series.


"As longtime supporters of racing and its fans, we are very pleased to continue our involvement with the sport as a team sponsor in the wireless category," said Dave Garver, executive director of high growth segments and sponsorships for the wireless division at AT&T.


"We've enjoyed our relationship with Jeff and RCR, and look forward to continuing to work with them through many more winning seasons."


Cingular, and now AT&T, have been the primary sponsor of the No. 31 car since 2002.


"AT&T has been an important part of RCR since 2002, so we're very excited about renewing our contract with them and continuing that great relationship," Richard Childress said.


"AT&T has been a tremendous supporter of RCR's fans and racing fans throughout the sport for more than a decade and I am eager to turn our full attention back to winning a championship."


Burton began driving for RCR in 2004 and was named the driver of the No. 31 car for the 2005 season. He has two wins, four poles, 15 top-five finishes and 33 top-10 finishes in 85 races.


Burton said AT&T has "been a great company to work with."
 
tkj24 said:
I don't like Nextel's service and they are way too pricey. So no I won't have Nextel. As a matter of fact I have Verizon and I don't think they even sponsor anything in Nascar.
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Robby Gordon
 
I've never seen Verizon on Robbie's car. Then again I don't look too close at it.
 
:cool:
Jim_Beam_Black_Charlotte_24.jpg
 
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