AT&T, Jeff Burton Sign Extensions With RCR

AT&T, Jeff Burton Sign Extensions With RCR
Posted on June 19th, 2007 at 8:34 am by Editor

One day after NASCAR made a legal request for permission to remove AT&T from the Nextel Cup series in 2008, AT&T made a strong statement it plans to stick around. AT&T announced it has exercised an option for a three-year extension with Richard Childress Racing to remain the primary sponsor of Jeff Burton’s No. 31 car through the 2010 season. Financial terms were not announced. Burton, meanwhile, has agreed on a contract extension with RCR.

Cingular and Alltel had previous sponsorship deals which thus far have been protected by the courts. U.S. District Judge Marvin Shoob issued a preliminary injunction last month that allowed the Cingular logos on Burton’s Chevrolet to be changed to AT&T markings. Shoob also barred NASCAR and any entity affiliated with it from interfering with AT&T’s rights as primary sponsor of the car in the Nextel Cup series. On Sunday, NASCAR asked for a minimum of $100 million in damages in a counter claim against AT&T Inc. The suit also asks that NASCAR be granted the right to kick AT&T – and all telecommunications companies other than Nextel – out of its top series in 2008.

I am sorry, but NASCAR and Sprint Nextel are completely wrong in their handling of the AT&T situation. I can understand Sprint Nextel not wanting any other wireless phone companies in NASCAR but Cingular and Altel were there before they signed the contract. Sprint Nextel knew exactly what they were getting into. Cingular rebranding to AT&T is irrelevant. NASCAR and Sprint Nextel are just using the rebranding as an opportunity to bully out Altel and Cingular/AT&T. This latest countersuit by NASCAR is dispicable, bad business and a joke. With the cost of operating a team rising and the shortage of Sponsorship dollars, NASCAR should be more concerned with lower the costs of running a team instead of trying to get rid of Sponsors and the much-needed sponsorship money those companies provide to two Nextel Cup teams.