A three-judge panel from the U.S. 11th Circuit Court of Appeals on Monday unanimously overturned a temporary injunction that has allowed AT&T logos on the No. 31 Chevrolet driven by Jeff Burton.
Since AT&T has up to five days to ask the court to reconsider, it is not clear whether the logos will be on Burton's car this weekend at Michigan.
Atlanta-based U.S. District Judge Marvin Shoob ruled May 18 that AT&T could put its logos on Richard Childress Racing's car in place of Cingular logos. Cingular was grandfathered under NASCAR's deal with Sprint Nextel as title sponsor of stock-car racing's top series.
AT&T and Cingular merged in December and the Cingular brand name was phased out. AT&T argued the company merely changed names and that the team was not getting a "new" sponsor. NASCAR said its agreement with Sprint Nextel protected only the Cingular brand.
The appeals court panel ruled that "because Cingular (now A&T Mobility) was neither a party to nor an intended beneficiary of the grandfather clause, it had not suffered legal injury as a result of NASCAR's denial of the logo change."
The panel said the grandfather clause was to protect RCR from an immediate loss of sponsorship as a result of the Sprint Nextel deal, and that any benefit Cingular got was incidental.
"We believe this is a victory for the entire industry," NASCAR spokesman Ramsey Poston said. "Every driver and team in the sport benefits, from our tire manufacturer, our fuel supplier and the series title sponsors. This decision confirms those relationships."
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That is dumb, so dumb. I can't believe NASCAR would take a sponsor away from one of it's teams. If I'm AT&T I go throw my money at some other series or sport.
AT&T logos on the #31 at MIS: AT&T plans to have its logos on the #31
Nextel Cup car for Richard Childress Racing this weekend at Michigan
International Speedway. Although the 11th Circuit Court of Appeals
overturned an injunction permitting the logos, AT&T still has time to
request a reconsideration of the ruling, and until that process is over, it
can keep the logos on the car. AT&T is expected to ask for the
reconsideration Friday. "This weekend, we will be running the car with the
AT&T brand," AT&T spokesman Mark Siegel said late Thursday afternoon while
declining to discuss the company's legal strategy. "The legal process is
moving along. I can't predict what will happen after [this
weekend]."
By Sporting News Wire Service
August 22, 2007
08:04 PM EDT
The 11th U.S. Circuit Court of Appeals has issued a mandate allowing NASCAR to require the removal of AT&T logos from the No. 31 Chevrolet owned by Richard Childress Racing and driven in the Nextel Cup Series by Jeff Burton.
Tuesday's mandate was an affirmation of the 11th Circuit's unanimous decision to vacate the preliminary injunction granted to AT&T in May by U.S. District Senior Judge Marvin H. Shoob. The appeals court had ruled Aug. 13 that, because AT&T was not an intended third-party beneficiary of the "grandfather clause" that allowed Cingular to continue its sponsorship of the No. 31 car, the injunction was not valid on breach-of-contract grounds.
The grandfather clause was a provision of NASCAR's agreement with RCR that allowed Cingular to sponsor the car after NASCAR contracted with Nextel, a competitor of Cingular in the telecommunications industry, as exclusive title sponsor of the Cup Series, beginning in 2004. A series of mergers brought AT&T and Cingular together, and AT&T has implemented a comprehensive campaign to announce the rebranding of Cingular as AT&T Wireless.
AT&T's injunction request was one step in the legal process. The case proper still must be heard in District Court, as must NASCAR's $100 million counterclaim against AT&T. Nor does the 11th Circuit's decision prevent AT&T from trying to seek injunctive relief on other grounds.
"The 11th Circuit Court of Appeals has issued a mandate, which now allows NASCAR to fully enforce its agreement with series sponsor Sprint Nextel on behalf of the entire NASCAR industry," NASCAR spokesperson Ramsey Poston said. "Therefore, the 31 may only run paint schemes approved by NASCAR that are in compliance with the industry's agreement with Sprint Nextel.
"What's this mean? It means that David has won Round 2 with Goliath."
The AT&T logos remained on the car at Michigan during a weeklong grace period that would have allowed AT&T to file a request for reconsideration of the appeals court's ruling. AT&T on Monday asked for a clarification of language in the Aug. 13 decision that might have been construed to mean that the entire case was being remanded for dismissal.
The appeals court clarified the issue, indicating the case has been remanded to District Court for trial, then issued the mandate allowing NASCAR to require the removal of the logos from the car.
Barring further legal maneuvering, NASCAR expects the logos to be off the car for Saturday's race in Bristol, Tenn. Poston said NASCAR had approved a variety of paint schemes for the No. 31 car, none of which includes the AT&T logos.
Calls to Richard Childress Racing referencing the logo issue were not returned.
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By JENNA FRYER
AP Auto Racing Writer
August 24, 2007
BRISTOL, Tenn. (AP) -- The fight between NASCAR and AT&T heated up Friday when the telecommunications giant refused to use a paint scheme or logos on Jeff Burton's car at Bristol Motor Speedway.
AT&T is still sponsoring the car but had to remove its logos because the U.S. 11th Circuit Court of Appeals overturned an injunction that had permitted their use.
At issue is if AT&T is allowed as a sponsor under NASCAR's exclusivity agreement with series sponsor Sprint Nextel.
NASCAR says only Cingular and Alltel, two companies involved in the sport before the Sprint Nextel deal, can compete. AT&T believes its 2006 merger with Cingular allows the company to participate. It doesn't want to use the Cingular logos because it is phasing out the name.
AT&T says NASCAR vetoed all of its submitted designs, and its only option was to use a plain orange car in Saturday night's race.
"NASCAR left us with no choice,'' said AT&T spokesman Mark Siegel said. "Because we love the sport, we are willing to take this approach, which literally does nothing for our brand image or identity. We don't want to disappoint the great NASCAR fans, and we want to continue to support Jeff Burton and Richard Childress Racing.''
But NASCAR officials vehemently maintained they approved several paint schemes, including a ``Go Phone'' design that was identical to one used in 2005. The older scheme said Cingular, and NASCAR says AT&T updated the design to remove the brand name.
"AT&T has been dishonest with the fans and with NASCAR, and it's time to stop,'' said NASCAR spokesman Ramsey Poston. "NASCAR has approved several paint schemes. The choice to run the logo-less car is RCR's decision.''
Poston also produced photographs of two Cingular stores located near the race track.
"Obviously, they still think the Cingular name is good enough for these stores,'' Poston said. "AT&T knew what the rules were when they merged with Cingular. It's time for them to do the right thing and honor the agreement.''
AT&T is expected to ask the U.S. District Court in Atlanta to hold another injunction hearing to place the logos back on the car.
Burton, meanwhile, said his team was trying not to let the legal wrangling become a distraction. In addition to a plain car, the logos have been removed from his uniform and the team transporter.
"I think reasonable people can come to reasonable solutions, and I'm still holding on to that,'' Burton said. "In order for that to work, people have to be willing to be reasonable. Hopefully, we can get there. I can't see where it is in the sport's best interest to ask a sponsor who has been part of this thing for years to not be here.''
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Jeff Burton couldn't have AT&T as a sponsor when he was with Roush, cos of Nextel and he went sponsorless. Now, he may lose his sponsorship with RCR for the same reason.
Money is ruining this sport.
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Last edited by Vintage B : 08-29-2007 at 05:17 PM.
it IS sad, Sprint is so threatened that they can't handle AT&T on one car. Tells me I don't want a Sprint or Nextel phone.....actually my cell is Alltel!
Agreement reached to run logos for rest of '07 season
By David Caraviello
NASCAR.COM
September 7, 2007
04:11 PM EDT
RICHMOND, Va. -- The title sponsor of NASCAR's Nextel Cup Series has reached an agreement with Richard Childress Racing that will allow the No. 31 car of Jeff Burton to compete while bearing the logos of primary sponsor AT&T.
"We are finalizing an agreement that protects the integrity of our sponsorship" said Dean Kessel, director of Nextel Cup Series marketing for Sprint Nextel. "We are giving RCR and Jeff Burton an appropriate amount of time to transition to a new sponsor while remaining focused on winning the championship. That is the best solution for RCR, NASCAR, Sprint and racing fans."
Reached in the garage area at Richmond International Raceway, Childress declined to comment, although the team owner did confirm that the deal allows AT&T logos to appear on Burton's car for the remainder of this season.
Details of the agreement were not immediately available, but RCR employees began applying AT&T decals to the No. 31 car and transporter early Friday afternoon. The logos had been stripped from Burton's vehicle after the 11th Circuit Court of Appeals on Aug. 14 overrruled a temporary injunction from a district judge that had allowed the No. 31 to compete in AT&T colors.
Burton's car sponsor, previously known as Cingular, was grandfathered into the sport after Nextel assumed title sponsorship and exclusive wireless rights. When the name of the company changed to AT&T, NASCAR barred the Childress team from competing in its new colors. Childress won a temporary reprieve in May, when the injunction allowed AT&T
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Court rules on logo
Court says AT&T must be removed from No. 31 car
Burton at Bristol without AT&T logos
AT&T logos go back on RCR's No. 31 at Richmond
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