NASCAR wins in appeals court vs. AT&T, #31 could lose logos by Michigan
Quote selected text Published August 13th, 2007 in NASCAR News
NASCAR won a major court decision Monday as the U.S. 11th Circuit Court of Appeals overruled a temporary injunction issued by a district court judge that had allowed AT&T logos to be placed on the No. 31 Richard Childress Racing car under NASCAR’s grandfather clause for telecommunication sponsors.
“Because Cingular [now AT&T Mobility] was neither a party to nor an intended beneficiary of the [grandfather clause], it has not itself suffered a legally cognizable injury as a result of NASCAR’s interpretation,” the three-judge panel wrote in its unanimous decision to overturn the May 18 decision of U.S. District Court Judge Marvin Shoob.
The decision by the Atlanta-based court could result in removal of the AT&T logos from the No. 31 Chevrolet driven by Jeff Burton as soon as the Aug. 17-19 race weekend at Michigan International Speedway. AT&T still has the option of asking the court to reconsider.
“Obviously we’re pleased,” NASCAR spokesman Ramsey Poston said. “This is good news for every driver and team in the sport, which benefits from our exclusive relationships.
“As we’ve always said, there are three key sponsors that benefit everyone in the industry - the tire manufacturer, the fuel supplier and the [series] title sponsors. This decision confirms those relationships.”
NASCAR, citing its exclusivity agreement with Sprint Nextel for the sponsorship of its premier series, had barred AT&T from using its logos to replace Cingular on the RCR car.
AT&T and Cingular merged in December 2006. AT&T went to court, arguing that NASCAR’s grandfather clause (which went into effect in 2004 when Nextel signed a 10-year deal to replace Winston as the Cup Series sponsor) in its annual contract with RCR did not preclude the change in logos.
Bookmark to:
- AT&T asks for clarification on appeals court ruling
- Court won’t move up NASCAR’s AT&T appeal
- RCR allowed to run AT&T logos tonight, Judge denies NASCAR’s delay request
- AT&T, NASCAR hearing over injunction set for Aug. 2
- AT&T in court with NASCAR once again to try get logos on the No 31-UPDATED 2
Stupid…Nascar should have better things to do.
They do. Laughing on the way to the bank with all that $$$$$$$.
All this talk about Cingular being taken back over, the fact that private investors were very recently looking at buying out Sprint slipped under the radar.
stupid, stupid, stupid…
nascar needs to leave sponsor along who cares its att . companys can sponsor any car they want! that what i thought
Who cares is private investors were looking to buy out Sprint? That’s why it went under the radar, ’cause it has no bearing on anything.
I love watching big greedy corporations squirm. Sucks for Burton and RCR however.
And the AT&T sponsorship honestly has no real effect on the Sprint Cup either. But, do you think NASCAR would like the uncertainty of their title sponsor possibly being bought yet again with part of the deal (that fell though) that the investors wanted a South Korean telecom company to run Sprint for them? They already used their Get Out Of Jail Free/One Name Change Only card and it is only 3 years in. But as long as the money is there then what does it matter?
It’s okay for the title sponsor to change hands ad nauseum but heaven forbid if a competing car sponsor should do the same. However, with all that being said, the point is very moot because of the contracts. What’s done is done and as much as I would hate to see it, AT&T already lost when they regained control over Cingular.
if nascar can allow nextel to change there name then why not the #30 car.
I would very much like to see Sprint get bought out again, then let NASCAR see how it feels when the shoe is on the other foot.
We will see but I bet NASCAR will just change the rules as they always do.
Brian france already thought he was a god before this now he’ll think he is bigger than god. his rain of terror will only get worse.
I just wonder what is now in store for Jeff Burton and Richard Childress with the sponsorship of the #31. I mean, they can’t really put Cingular back on the car, can they? I mean, it’s AT&T now, the cingular name really doesn’t exist anymore, at least that’s the way I understood it. So, if that’s the case, what will they do? They will have to lose that sponsor and find someone else. That’s the worst part of this whole deal. I mean, in the end, it’s Richard Childress and Jeff Burton who are getting screwed. RC and JB didn’t have anything to do with Cingular and AT&T merging to begin with, and I understand that niether did NASCAR. It’s just sad to see that such a good team with strong finacial backing could possibly lose that backing and get put into a whole with no sponsor, no money, and no shot at running as well as they have. It will be just like the last part of the season that Jeff Burton was with Roush and had no sponsor. And he’s running for the Chase and has a really good shot at the championship. It’s just a real crappy deal, real unfortunate. I honestly have no sympathy for AT&T, nor do I for Nextel/Sprint or NASCAR. They will all survive just fine, no matter what the outcome of this lawsuit may have been. I just feel for Jeff and RC, but I think that they will be able to bounce back just fine, at least I hope so.
Josh - I had the same question as you. But I found out that as part of the new contract with Nextel, they are allowed to change names ONE time only in the ten-year contract. They just burned that up by changing to the Sprint Cup starting 2008.
Dustin - I am certain that AT&T re-upped their contract with RCR starting next year with the contingency that their lawsuit/s will not be successful and they get booted. I cannot tell you who else is lined up but I am sure RCR has that contingency worked out; maybe even with AT&T’s help. I can’t see AT&T being so stupid to go all in on and call NA$CAR’s bluff with the real victim being RCR when AT&T loses.
While I think a part of the Cingular-AT&T Mobility transition went hand-in-hand with winning the court challenge allowing the new logos on the #31, if they lost that, I think AT&T would’ve kept moving without NA$CAR. There was too much in the works to get stopped up by little ol’ NA$CAR. Even if they lose everyting including the $100 million countersuit, they have the new iPhone revenue to cushion that fall and write off the rest against the shareholders. Cut bait and keep moving forward.
That being said, I still don’t believe AT&T would’ve thrown RCR under the bus and leave them hanging without a backup plan.
So If AT&T can’t be on the car, why could Cingular be for these past few years
even with NEXTEL as the series sponsor???
You have to look at it from a business point of view, I agree with NASCAR, You signed a contract with Nextel for 10 years worth $700 million, they could have kicked out Cingular and Alltel but they let them grandfather in. IM glad they ruled in favor of NASCAR!!! They should KICK OUT ALLTEL!!!
att was not involved with the contract so they are not grandfathered, but sprint was?? nextel was its own company at the time the contracts were drawn up.
Real shame that Jeff Burton has to have this on his mind while contending for the Cup.