The National Association for Stock Car Auto Racing filed a $100 million counter suit last week against AT&T claiming that the wireless carrier is interfering with its exclusive sponsorship agreement with Nextel.
The suit comes just weeks after a U.S. District judge allowed AT&T to replace the Cingular logo on Jeff Burton’s No. 31 Richard Childress Racing Chevrolet with AT&T branding. Burton’s car is sponsored by Cingular, however, after AT&T took ownership of Cingular, AT&T said it planned to eliminate the Cingular brand name.
NASCAR officials have repeatedly not allowed AT&T to switch the logo because of NASCAR’s deal with Nextel, which sponsors NASCAR’s top series the Nextel Cup.
NASCAR’s suit, filed June 15 in the U.S. District Court for the Northern District of Georgia, also alleges “ambush” marketing and claims breach of contract, fraud and misrepresentation.
As part of the filing, NASCAR is asking to eliminate the grandfather clause with Nextel that allowed Cingular and Alltel to participate in the sport. If successful, both wirelesses carriers, along with all others, could be prevented from sponsoring any car in 2008, said NASCAR spokesperson Ramsey Poston.
“This case is now about the NASCAR rule book,” he said. “It is our constitution and everyone who comes into the sport at any level signs a membership agreement in which they agree to abide by the rule book. That is what has governed our sport for over 50 years. Part of that book gives NASCAR the exclusive authority to approve or deny any paint schemes.”
In March AT&T sued NASCAR after it would not let AT&T replace the Cingular logo on Burton’s racecar with AT&T branding. The No. 31 car is owned by RCR Racing.
NASCAR signed a 10-year sponsorship deal with Nextel in 2003, and Nextel replaced Winston as title sponsor of its top racing series this year.
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