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Post Info TOPIC: AT&T to sue Nascar to put logo's on RCR #31?
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AT&T to sue Nascar to put logo's on RCR #31?
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From Jayski.com:

AT&T to sue NASCAR to place logos on #31: The cell-phone industry's ruthless fight has spilled over into NASCAR, and landed squarely on the hood of Jeff Burton's #31 Chevy. AT&T's wireless unit, formerly known as Cingular Wireless, planned to file a lawsuit later on Friday in Atlanta's U.S. District Court against NASCAR. The suit will center around AT&T's sponsorship on the #31 Chevrolet driven by Burton. The car has traditionally been sponsored by Cingular, with its familiar orange paint scheme. Though federal regulators approved AT&T's acquisition of BellSouth and its wireless unit Cingular on Dec. 29, NASCAR will not allow AT&T logos to appear on the #31 car because it would violate its current agreement with Sprint Nextel, which owns the naming right to NASCAR's top series. "We're filing a lawsuit to protect the right to transition from Cingular to AT&T on the #31 car," AT&T spokesperson Clay Owen said Friday afternoon. NASCAR officials were not immediately available for comment. Burton's car will continue to sport the Cingular Wireless paint scheme for this weekend's Kobalt Tools 500 at Atlanta Motor Speedway.(Atlanta Journal-Constitution)(3-16-2007)

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From Jayski.com:

UPDATE: AT&T Inc., owner of the largest U.S. mobile phone carrier, sued NASCAR after meeting resistance to its efforts to replace the Cingular brand with the AT&T brand on the #31 Chevy car that the company sponsors. “NASCAR’s refusal is apparently a result of its fealty to Spring Nextel Corp., a wireless provider that, since 2004, has been lead sponsor of NASCAR’s ‘Cup Series,’ which is a series of NASCAR’s highest profile races,” stated AT&T in a complaint for injunctive relief. The complaint, filed in federal court in Atlanta, also seeks a declaratory ruling and damages. AT&T, which acquired the remaining 40% ownership of Cingular Wireless L.L.C. in its acquisition of BellSouth Corp. late last year, has a sponsorship agreement with Richard Childress Racing (RCR) that runs from 2005 through 2007, with an exclusive right to negotiate a renewal beyond 2007, the suit said. RCR owns the #31 car, which is driven by Jeff Burton. “NASCAR granted Sprint Nextel a lead sponsor of the Cup Series, exclusivity as the sole communications provider sponsoring NASCAR racing, and it is apparently on this basis that NASCAR refuses to permit RCR to alter the design of the #31 car,” the AT&T suit stated. Andrew Giangola, director of business communications for NASCAR, said the motorsports organization does not comment on litigation. However, Giangola pointed out that NASCAR’s contract with Sprint Nextel grandfathered both Cingular and Alltel Corp. into the competition, allowing Cingular and Alltel to participate in the NASCAR Nextel Cup Series as team sponsors indefinitely as long as the firms did not change the scope of their sponsorship (beyond a team) or the actual name and brand on the race car. He said only the “Cingular” and “Alltel” brands are permitted on cars competing in the NASCAR Nextel Cup Series. “This has been and remains NASCAR’s position,” said Giangola. The issue is notable as Cingular and Sprint Nextel have previously battled over a variety of issues, including advertising claims.(source: rcrnews.com), see an image of the proposed Cingular/AT&T scheme on my #31 Team Schemes page.(3-20-2007)


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From Jayski.com:

AT&T wants logo on Burton's car immediately: Telecommunications giant AT&T filed a motion Monday, asking that its logo be added to Jeff Burton's #31 Chevy 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." 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 is bought out by another company. NASCAR and 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 #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."(AP/ESPN.com), see past news on the AT&T lawsuit and Cingular on my #31 Team Schemes page.(3-26-2007)

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RE: AT&T to sue Nascar to put logo's on RCR #31?
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From Jayski.com:

UPDATE - NASCAR fires back: AT&T has been pressuring NASCAR with its lawsuit over how to paint the quarter panels on Jeff Burton's Nextel Cup #31 Chevy car as it rebrands Cingular under the AT&T logo. According to papers being filed in the suit, NASCAR officials told Stan Sigman, the president and CEO of Cingular, five weeks ago that in April 2005, George Pyne, NASCAR's CEO at the time, told the Richard Childress-Burton team that it would not allow a change in paint scheme or logos if Cingular was bought and had its name changed. NASCAR further said that its grandfathering of Cingular - after Nextel signed on as the series sponsor - "was tied directly to the Cingular Wireless brand and not the Cingular company." The papers further say that "it is generally not in NASCAR's interest to limit sponsors' participation in the sport." NASCAR suggested that AT&T could sponsor a Busch team or a Trucks team instead, if it wished. That is precisely the route that Verizon has taken. NASCAR's filing refers specifically to Pyne's letter to Childress, dated April 4, 2005. It specifies that "should Cingular be acquired by a third party, the Cingular brand is continually welcome as a team sponsor. However, should the company's name change, we will not allow any paint scheme or branding on the car promoting this new name." The papers go on to say: "NASCAR certainly has no desire to eliminate the Cingular brand from NASCAR Nextel Cup series competition." But, "unfortunately AT&T's decision to purchase Cingular and then to eliminate the Cingular brand puts NASCAR in the position of having to now enforce the rights granted Nextel in the series sponsorship agreement."(in part from the Winston Salem Journal)(3-28-2007)

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More from Nascar.com:

http://www.nascar.com/2007/news/headlines/cup/04/27/att.nascar.lawsuit/index.html

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From Jayski.com:

Judge: Let AT&T into NASCAR logo race UPDATE Image, NASCAR Statement: A federal judge on Friday ruled that AT&T can replace a Cingular logo with its own on a NASCAR race car, following its absorption of the Atlanta-based wireless company. The decision marks an important victory for AT&T. The company sued NASCAR in March, alleging that the racing organization improperly prevented AT&T from putting its brand on the #31 car driven by Jeff Burton.The vehicle currently is branded for the former Cingular Wireless. AT&T took control of Atlanta-based Cingular in late December and is in the process of shedding the Cingular name. NASCAR objected to AT&T's proposal for adding its logo to Burton's stock car. The racing organization cited a deal with Sprint Nextel, which holds the title sponsorship for NASCAR's top racing series. NASCAR said its agreements with Sprint Nextel prohibit the addition of other telecommunications companies as sponsors. Judge Marvin Shoob, of the U.S. District Court in Atlanta, ruled that AT&T would be likely to win the case. He agreed with AT&T's argument that a change in brands is allowed under a grandfather clause that was put in place to protect Cingular, despite Sprint Nextel's deal with NASCAR.(Atlanta Journal-Constitution)
UPDATE: been told the AT&T-branded car is scheduled to make its debut tomorrow at the All-Star Challenge race in Charlotte, NC., see an image of the new scheme on my #31 Team Schemes page.
NASCAR Statement Regarding Todays Court Decision: NASCAR is disappointed with todays ruling but will continue to provide a sponsor friendly environment for the industry and its partners. NASCAR is currently weighing any and all options for appeal of todays decision. Meanwhile, NASCAR will continue to protect the industry from actions designed to interrupt a business model which has been beneficial to all. It is important to understand 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 PR)
UPDATE 2: NASCAR has requested and has been granted a hearing by Judge Marvin H. Shoob to stay todays decision. The hearing will be held at 11:30am/et tomorrow morning, May 19, 2007. If the judge grants the stay, then the #31 car will remain with its current branding. If NASCARs request is denied, then NASCAR will seek an emergency stay from the 11th Circuit Court of Appeals on Monday morning. Todays ruling is limited to the facts of this particular case and does not have broad implications. 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. It is important to understand 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 PR)(5-18-2007)



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