What took you so long? NASCAR files suit against AT&T

Here’s the short, short version: Cingular and Alltel had NASCAR team sponsorships. Sprint Nextel bought the rights to sponsor the top series (formerly the Winston Cup). In that deal, they were assured that they would be the only telecommunications sponsor in NASCAR. However, since Cingular and Alltel were already players, they were granted grandfather privileges. This agreement stipulated that their brand could be extended no further than it already was. However, since Cingular rebranded as AT&T, the powers that be decided that having “Cingular” and its logos tattooed on the car would be misleading to many consumers. After all, sponsorship is just a fancy word for “advertising.” So AT&T proposed that they add their logo to the back of the No. 31 car. That did not fly with NASCAR. A court injunction granted AT&T the right to add their emblem to the car. It was in a very limited capacity, and in no place was there any text of “AT&T” — just the globe logo. They’ve been racing with it since May 19. Also included in the newly-filed suit is a provision that would allow NASCAR to boot AT&T and Alltel from the sport starting in 2008. This would be “in order to protect NASCAR and all participants in the sport by placing NASCAR into full compliance with the terms and conditions of the Nextel Sponsorship Agreement.” The problem, as we stated a few weeks ago, is that NASCAR doesn’t play much of a role in the sponsor-team arrangements. They actually wield little real authority in those matters. This, to us, is the source of the problem. The suit charges breach of contract, fraud and misrepresentation, and conspiracy to aid and abet wrongful interference with Nextel. We’ll save our opinions for a separate piece on these charges. [MSNBC]]]>