Cingular-Sprint Nextel quibbles spill onto NASCAR racetrack

AT&T Inc., owner of the largest U.S. mobile phone carrier, sued the National Association for Stock Car Auto Racing Inc. after meeting resistance to its efforts to replace the Cingular brand with the AT&T brand on the No. 31 Chevrolet Monte Carlo SS 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 percent ownership of Cingular Wireless L.L.C. in its acquisition of BellSouth Corp. late last year, has a sponsorship agreement with Richard Childress Racing that runs from 2005 through 2007, with an exclusive right to negotiate a renewal beyond 2007, the suit said. Richard Childress Racing owns the No. 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 No. 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.