Thanks Curves, great article and I want Alltel to stay as Ryan's sponsor. He looks so darn good in that Alltel blue, it matches his eyes! *sighs* ~LOL~
Hey bigE thanks for the info. I saw the Verizon Busch car in Atlanta and was very surprised indeed to see it what with the talk about both of our teams losing the primary sponsors! Thanks Dude for the most informative info!
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Burton hopes for resolution soon with AT&T suit: #31-Jeff Burton says his Richard Childress Racing team can't wait long for a resolution to its AT&T lawsuit against NASCAR. That's why he's keenly awaiting to see if AT&T will get the injunction it's asking for to be allowed to put the AT&T logos on the car in place of Cingular. AT&T and Cingular merged earlier this year, and AT&T is phasing out the Cingular brand. AT&T wants to put its logos on the #31 Nextel Cup car, but NASCAR has said that conflicts with NASCAR's sponsorship agreement with Nextel. No hearings have yet been set in AT&T's request for a temporary injunction as well as a permanent injunction for it to be allowed to remain as a Cup sponsor. NASCAR has not yet responded to the lawsuit, which was filed March 16 in U.S. District Court in Atlanta. "It can't linger," Burton said Friday. "An injunction will have a much quicker decision than a regular court case, and then it still will go to court later. ... If AT&T is told it can't come back, then we have people that we have to feed, people that have house payments and have a life they have to live and they have to be paid. We can't be caught in the position of not having sponsorship going into '08. And if AT&T raised their hand and say, 'We're going to get out and fight it later,' they might not ever be able to get back in." When NASCAR negotiated a 10-year deal with Nextel in 2003 worth an estimated, $700-$750 million, it grandfathered in Cingular but not AT&T. The Cingluar sponsorship was set to run out at the end of the year, and AT&T wants to renew but must now wait for the courts.(SceneDaily.com)(3-24-2007)
AT&T seeks immediate permission to put logo on Burton's car
By CHRIS JENKINS, AP Sports Writer
March 26, 2007
Telecommunications giant AT&T filed a motion Monday, asking that its logo be added to Jeff Burton's car immediately.
The motion was filed in U.S. District Court in Atlanta, where the company also filed its lawsuit against NASCAR. A hearing on the motion has not yet been scheduled.
Burton is sponsored by cell phone service provider Cingular. AT&T recently took full ownership of Cingular as part of its recent merger with BellSouth and intends to eliminate the brand name.
AT&T sued NASCAR on March 16 after racing series officials refused to allow AT&T to put its logo on Burton's car because of NASCAR's deal with Nextel, which sponsors NASCAR's top series -- the Nextel Cup.
``We must bring this issue to resolution,'' John Burbank, vice president of marketing for AT&T, said in a statement. ``The season is well under way and so are our rebranding efforts. This filing is a logical next step for us in the process, and one we must pursue so that we can simply move forward with our paint scheme -- something our agreement with NASCAR allows us to do.''
NASCAR's Nextel deal forbids teams that race in the series from signing new sponsorship agreements with competing telecom companies. The deal does contain a provision that allows teams with existing telecom sponsorships -- such as Richard Childress Racing, the team Burton drives for -- to keep their sponsors.
NASCAR officials said that even with the restrictions, the Nextel sponsorship -- along with similar deals with fuel supplier Sunoco and tire supplier Goodyear -- benefits every team. Money from Nextel, for example, goes toward the drivers' year-end points fund.
``While it is unfortunate that there is a matter in litigation, it is important to know that NASCAR is defending every driver, team and track by protecting a sponsor that benefits everyone,'' NASCAR spokesman Ramsey Poston said.
AT&T officials acknowledge they agreed to a contract with Childress' team that contains provisions saying Cingular can't increase the size or placement of its logo on the car and can't switch its sponsorship to another team. But they say the contract does not contain language preventing a logo change if Cingular's ownership structure changes.
Nextel officials declined comment when the lawsuit was filed.
The lawsuit seeks permission to make the logo switch and damages for the ``substantial harm'' NASCAR has caused to the company. The lawsuit calls altering the design of the No. 31 car an ``integral part'' of the company's brand name switch, and that NASCAR's refusal to allow it inhibits the company's ability to ``attract new customers and retain existing ones.''
With so many sponsors, Poston said it's inevitable conflicts will arise.
``On a positive note, it is flattering that so many companies are eager to invest in NASCAR, its drivers, teams and tracks,'' Poston said. ``Currently, more than 100 of the Fortune 500 companies participate in NASCAR -- more than any other sport.''
__________________ I can't get the @#$%& cap off these chill pills!
Judge won't rule on AT&T case for more than a week
SCENEDAILY
8:00PM ET THURSDAY APRIL 26, 2007
BY BOB POCKRASS - ASSOCIATE EDITOR
ATLANTA - AT&T said Nextel was "booting" AT&T out of NASCAR racing, while NASCAR claimed that AT&T was attempting to "ambush" Nextel's marketing power as attorneys on both sides pled their case on whether AT&T logos should be allowed on the No. 31 Richard Childress Racing car.
U.S. District Court Senior Judge Marvin H. Shoob did not rule Thursday on AT&T's request that its logos to be allowed to replace Cingular on the car driven by Jeff Burton. Attorneys on both sides will file additional paperwork in the case by May 7, and Shoob said he would rule in the days following those submissions.
AT&T was requesting an injunction to allow its logos on the cars immediately. NASCAR has barred the change from Cingular to AT&T - the two companies merged in December - because NASCAR says that violates the agreement with Nextel to sponsor NASCAR's premier series.
Among the issues debated was at what point did Cingular (now AT&T) know it couldn't change the name in case of a merger as part of its grandfather clause to remain in the sport when Nextel signed its NASCAR deal in 2003.
NASCAR said Cingular has known all along because Cingular had been denied the right to put parent company SBC on a car and the AT&T globe was denied on a BAM Racing car in 2003 - after the Nextel deal was signed but before it went into effect.
David Balser, an attorney representing AT&T, noted that NASCAR amended its agreement with Nextel in 2005 to specifically say that the logos can't change if a company is bought out.
He said that NASCAR wouldn't have made that amendment if it wasn't worried about Verizon buying Alltel (another sponsor that was grandfathered in with Cingular). He added that if NASCAR and Nextel intended to enforce a policy of no re-naming, it would have been in the original contract.
Regardless, he said that the re-named Cingular to AT&T is "still the same company with the same network selling the same service."
Peter Canfield, representing Sprint Nextel, scoffed at that notion.
"This is not just a name change," he said. "Cingular is a relatively new and limited brand. AT&T is an entirely different animal."
David Gelfand, an attorney representing NASCAR, said the sanctioning body has been consistent in its policy and only amended the Nextel agreement in 2005 to make it more clear amid the Verizon-Alltel rumors.
He said that AT&T also must abide by the NASCAR rulebook, which gives NASCAR final authority on paint schemes.
Gelfand noted that AT&T, AT&T Wireless, and BellSouth were all on a list of non-approved sponsors (Balser responded that Sprint was also on that list until it merged with Nextel) and because Cingular knew it couldn't have put parent company SBC on its car, it knew that it couldn't put AT&T on its car now.
"They are seeking to change the status quo, not maintain the status quo," Gelfand said, also saying, "[They are] trying to ambush Nextel to do something it was never allowed to do."
Balser pointed to a recent internal Sprint memo that indicated it didn't want NASCAR to settle and it would be better off "booting AT&T."
Dean Kessel, Sprint Nextel's marketing manager for the Nextel Cup Series, said afterward that wasn't the case.
"That was e-mail dialogue," said Kessel, who was not involved with the e-mail. "The context was the message assuring that NASCAR defends our exclusivity.
"It is clear we weren't kicking people out of the sport. Our actions to this day have been to the contrary of that [with the grandfather clause]."
Any decision by the judge can be appealed. The judge's ruling is only temporary. If he finds AT&T has a likelihood that it would win and would face immediate harm by not having its logos on the car, he rules in favor of AT&T.
The issue would then eventually be decided through motions and possibly a trial.
"NASCAR is defending every driver, team and track involved with NASCAR," NASCAR said in a statement following the hearing. "The court's ruling will be important to protect the very flexible and open environment that allows for hundreds of sponsors to successfully participate in NASCAR.
"It's important to remember that Sprint Nextel is a cornerstone sponsor that benefits the entire industry by way of its contribution to the championship points fund, technology bringing fans closer to the sport
and its massive marketing and advertising campaigns. NASCAR will continue to protect the industry in any future attacks on our key partners."
AT&T spokesman Mark Siegel said his company would consider all options depending on the verdict.
"We made a very compelling case," Siegel said. "We were in the sport before Nextel was [with Cingular and BellSouth]."
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yes jeff burton will have cingular for at least the next 2 weeks... seeing rumors of napa looking at him too.... hmmm what will RC do with all that orange paint?
yes jeff burton will have cingular for at least the next 2 weeks... seeing rumors of napa looking at him too.... hmmm what will RC do with all that orange paint?
jayski says the NAPA rumors were denied by Childress. I'm guessing the 16 gets NAPA with Edwards/McMurray eventually looking for a ride. Right now my money is on Edwards leaving but that's just my opinion.
jayski says the NAPA rumors were denied by Childress. I'm guessing the 16 gets NAPA with Edwards/McMurray eventually looking for a ride. Right now my money is on Edwards leaving but that's just my opinion.
WHOA?? whata what?? Are you talking cup or busch? Man I would love to see Edwards drive a chevy!
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WHOA?? whata what?? Are you talking cup or busch? Man I would love to see Edwards drive a chevy!
Well, Rousch has to go down to 4 teams eventually correct? There is no way Kenseth leaves IMO, he's the new Martin. That leaves McMurray, Biffle, Edwards and Ragan as his drivers. Ragan=future. Biffle=best of the three. That leaves Edwards and McMurray. McMurray=results. Hmmmm, I wonder who is left out?
Of course this is just speculation on my part. They could simply let Biffle walk after his contract is over and not get a new sponsor. That would be extremely stupid, but possible.
jayski mentioned a rumor about NAPA looking at the 16 for next year. That is where this all started.
NASCAR has requested and has been granted a hearing to stay today's decision.
U.S. District Court Judge Marvin H. Shoob ruled earlier today that NASCAR cannot prevent AT&T from re-branding the No. 31 Cingular Chevrolet driven by Jeff Burton after issuing a preliminary injunction.
However, NASCAR has requested and has been granted a hearing by Shoob to stay today’s decision. The hearing will be held at 11:30 a.m. Saturday morning. If the judge grants the stay, then the No. 31 car will remain with its current branding.
The issue has become a hotly debated topic as Nextel, primary sponsor of the NASCAR NEXTEL Cup Series, has exclusive rights in the telecommunications arena within the top series. As a result, no other telecommunications company could broker deals to sponsor cars and/or events for the series except for Cingular and Alltel, which had deals in place with RCR and Penske Racing respectively prior to the agreement by NASCAR and Nextel (which has since then become Sprint Nextel Corp.).
Cingular, which first began sponsoring the RCR No. 31 back in 2001, was founded as a joint venture between AT&T and BellSouth, with AT&T holding majority ownership of the company. In December 2006, AT&T acquired the remainder of Cingular when it purchased Bellsouth.
Ever since the completion of the purchase, NASCAR has prevented the newly established AT&T Mobility division from re-branding the Richard Childress Racing No. 31 machine since the grandfather agreement was done with Cingular, not AT&T.
"Sprint Nextel has been committed to enhancing the NASCAR fan experience in many ways, including increasing the points fund payout and developing cutting-edge technology and services for the betterment of the fans, teams and the sport All of this was possible through the exclusivity granted to us as the series sponsor from NASCAR also grants us protection from other telecommunications competitors infringing on our sponsorship rights," said Dean Kessel, director of NASCAR NEXTEL Cup Series marketing for Sprint Nextel. "The merger that created the new AT&T means their brand now represents a much broader and more comprehensive company than the Cingular brand, which was allowed to retain its existing brand position with the racing team."
AT&T initially filed suit on March 16 after NASCAR denied the company’s request to include the AT&T logos on the rear quarter panels of the No. 31 car as they tried to transition their customers and fans to the AT&T brand.
Judge Shoob contends in his ruling that "The continued appearance of the Cingular brand on the No. 31 car, unaccompanied by any indication that Cingular now does business as AT&T, is likely to confuse NASCAR fans."
In order to reach his conclusion, the Sporting News reports that AT&T had to satisfy four criteria: 1) a substantial likelihood of success (in the lawsuit) on the merits; 2) a substantial threat of irreparable harm if the injunction were not granted; 3) that the potential injury to AT&T outweighed the potential hardship to NASCAR; and 4) that the granting of the injuction would not be adverse to the public interest.
If NASCAR’s Saturday morning request is denied, they will seek an emergency stay from the 11th Circuit Court of Appeals on Monday. However, AT&T logos would be allowed to adorn the No. 31 Chevrolet immediately.
"I am really happy for AT&T that we are going to be able to re-brand our car to AT&T and carry on. We want to get back to really trying to win this championship. It's a great day for RCR and AT&T," said team owner Richard Childress. "Hopefully, if everything works well, we will have them on there tomorrow night."
As expected, AT&T officials are equally as happy with the judge’s decision.
"We are pleased that the court has allowed us to proceed with re-branding the No. 31 car," said John Burbank, AT&T vice president of Marketing, in a statement to the media. "We look forward to the debut of the new paint scheme and to directing our focus back to the action on the track and to Jeff Burton's fantastic start to the 2007 season."
For their part, NASCAR executives are disappointed by Shoob’s ruling.
"Today’s ruling is limited to the facts of this particular case and does not have broad implications," a NASCAR release stated. "NASCAR will continue to provide a sponsor friendly environment for the industry and its partners and will protect the industry from actions designed to interrupt a business model which has been beneficial to all," NASCAR said in a statement.
The sanctioning body will continue to explore all options.
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Judge won't rule on AT&T case for more than a week
AT&T Wins Court Injunction
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