AT&T Sponsorship Controversy
Cingular Wireless began its sponsorship of the #31 Chevrolet in the NASCAR NEXTEL Cup series prior to 2004, when NEXTEL purchased the naming rights to NASCAR's top division. Cingular and Alltel, sponsor of Ryan Newman's #12 Dodge, were allowed to stay as sponsors under a grandfather clause. In early 2007, following its purchase by AT&T, Cingular began a rebranding effort to the AT&T Mobility brand. NASCAR quickly claimed that a clause in their contract with Sprint Nextel would not allow Cingular to change either the name or brand advertised on the #31 car.
After trying and failing to persuade NASCAR to approve the addition of the AT&T globe logo to the rear of the car, AT&T filed a lawsuit against NASCAR on March 16, 2007. On May 18, AT&T won a preliminary injunction and, following a failed emergency motion for a stay by NASCAR on May 19, rebranded the #31 car in time for the Nextel All-Star Challenge that evening. NASCAR was later granted an appeal to be heard on August 2.
On June 17, NASCAR announced it had filed a $100 million lawsuit against AT&T and would like AT&T and all other telecommunications companies out of the sport in 2008. It should be noted that the other rival company involved, Alltel, was in the process of being sold.
On August 13, a ruling by a federal appeals court cleared the way for NASCAR to prevent AT&T Inc. from featuring its logo on Jeff Burton's No. 31 Richard Childress Racing Chevrolet. The court, therefore, threw out a lower court's ruling that prevented NASCAR from stopping AT&T's plans. The appeals court remanded the case to the U.S. District Court in Atlanta.
At first practice for the Sharpie 500 at Bristol Motor Speedway on August 24, the #31 car had no AT&T branding, but the familiar orange and black paint scheme. Burton's pit crew wore grey Richard Childress Racing shirts and Burton wore a plain orange fire suit displaying only small associate sponsor logos. The car arrived in a black hauler with only the number 31 on the side. NASCAR officials said the car would not have made it through inspection with the AT&T logos.
On September 7, 2007 NASCAR announced that an agreement had been reached between Sprint Nextel and Richard Childress Racing which would allow AT&T to sponsor the No. 31 car through the end of the 2008 season. Under the terms of the agreement Burton will have to find a new sponsor by 2009. On June 18, 2008, it was announced that RCR had secured sponsorship for the 31 of Jeff Burton. Caterpillar, which previously spent 10 years on the #22 of Bill Davis Racing and with Jeff's brother Ward driving from 1999–2003, has signed a multi-year agreement with Richard Childress Racing to become the new primary sponsor of the 31 starting in 2009.
Read more about this topic: Jeff Burton
Famous quotes containing the word controversy:
“And therefore, as when there is a controversy in an account, the parties must by their own accord, set up for right Reason, the Reason of some Arbitrator, or Judge, to whose sentence, they will both stand, or their controversy must either come to blows, or be undecided, for want of a right Reason constituted by Nature; so is it also in all debates of what kind soever.”
—Thomas Hobbes (15791688)