Nextel exec: NASCAR sold us a bill of goods

[tkj24]

NASCAR wants a level playing field when it comes to racing, but Nextel's competition wants the same thing in the marketplace. So, should a title sponsor that pays $70 million per year to help finance and promote the sport expect some protection against its rivals? NASCAR believes so, and it's willing to go to court to prove it. "We were sold a bill of goods, in basic terms," Dean Kessel, who runs Nextel's marketing department for racing, told NASCAR Scene. "What we paid for is devalued." When it replaced Winston as the top series' title sponsor in 2004, Nextel allowed Cingular and Alltel to remain in the sport as long as they agreed not to change or increase their decals. However, when AT&T bought Cingular last year, it immediately moved to replace the Cingular decal on Jeff Burton's car. NASCAR refused, but AT&T convinced a federal judge in Atlanta to overrule the stock-car organization in May. Burton's car now carries the familiar AT&T globe logo, which is larger than the Cingular decal. NASCAR responded last month with a $100 million lawsuit against AT&T, accusing the wireless provider of interfering with its exclusive sponsorship agreement. NASCAR also accused AT&T of breach of contract, fraud and misrepresentation and conspiracy to aid and abet wrongful interference with Nextel. Nextel admitted that a lawsuit against NASCAR is an option because it agreed to the 10-year sponsorship deal believing no other wireless company was allowed. -- Jacksonville Times-Union

 

[N2racin44]

I do not know about you. Seems many of you think that NASCAR is simply out to bully others around for money. IMO if I was NEXTEL and I was paying 70 million dollars for the exclusive rights to sponsor the NEXTEL cup I would be pretty pissed about AT&T being in the sport. Obviously NASCAR thinks that it has a leg to stand on contractually wise if they are going to go after AT&T for $100 million.

 

[buckaroo]

This is an issue that has been bandied about here for some time now. It seems that many fans couldn't care where the money for the sponsorship of the series comes from, or that it comes from the air, but they don't like the idea that Nextel doesn't want to allow any competition on the track. With the selling of companies right and left, it's a hard thing to buy or sell and as for me, I can see both sides of the issue. However, there is one thing that is very important to remember here and that is AT&T does not share any of it's sponsorship money with anyone except RCR, whereas the Nextel money is shared by everyone to some extent.

NASCAR could very well be biting the hand that feeds it and could lose Nextel/Sprint as the title sponsor. Where would that leave the sport? I doubt very seriously that AT&T would make up the difference, and while RCR and other teams can continue to opperate to some extent without Nextel, not for very long unless another title sponsor comes aboard.

We all know that without sponsors, teams can't exist, but the series also needs a sponsor to exist. It's a shame that so much money is involved, and as I've said time and time again, money will be the end of the sport, sooner or later.

 

[Mopardh9]

We all know that without sponsors, teams can't exist, but the series also needs a sponsor to exist. It's a shame that so much money is involved, and as I've said time and time again, money will be the end of the sport, sooner or later.

I've said this before and i'll say it again....Nascar could sponsor and should sponsor it self. This would eliminate all this BS about who to let in as sponsors on the various teams. Everyone would be allowed in , there would be know lawsuits, teams as it is are finding it hard to get good sponsors these days , why make it harder for them ? The little 1 car teams are getting the shaft IMO, Nascar has plenty of money, sponsor yourself, so all this BS goes away. Just my rant for the day....lol