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Meg, I liked the flowers, too! Especially the gold/yellow one. I would much much rather look at those than the wrecks. I opened one of the wrecks and ignored...
Atlanta Motor Speedway sues Pep Boys for Cup race sponsorship worth $1.6M
By Bob Pockrass - Associate Editor
Thursday, May 07, 2009
The Pep Boys Auto logo adorns the pace car used in last year's Sprint Cup race at Atlanta Motor Speedway.
Atlanta Motor Speedway
Courtesy
Atlanta Motor Speedway is suing Pep Boys over a payment dispute on a contract that called for the auto parts chain to pay $3 million for a two-year NASCAR Sprint Cup Series race sponsorship, according to court documents.
Pep Boys has allegedly stopped making payments for the 2009 race, according to the lawsuit filed April 30 in Georgia Superior Court in Henry County, Ga.
The suit says the deal was worth $1.4 million for the track’s 2008 fall race and $1.6 million for the 2009 fall race. According to the complaint, Pep Boys did not make the $800,000 payment due March 1, 2009, and the track is owed $1.6 million for the 2009 race.
Although the contract states that the sponsorship is for “a fall NSCS Event,” SMI says in its complaint that Pep Boys did not object to the 2009 race being moved to Labor Day weekend before it was announced. According to the complaint, Pep Boys sent a letter saying it could terminate the contract because the track breached the agreement since the 2009 fall race is now “during the summer.”
"Pep Boys was pleased to be the title sponsor of the last two fall NASCAR Nextel Cup events held at the Atlanta Motor Speedway,” Pep Boys director of corporate communications Peter Robinson said in a statement. “We know how loyal NASCAR fans are and enjoyed introducing these ‘car people’ to ‘Manny, Moe & Jack’ over the last two years. Motorsports sponsorship continues to be part of our advertising plans.
“Unfortunately, the Atlanta Motor Speedway chose to move the 2009 fall race into the summer, which does not align with our 2009 advertising calendar and was in conflict with the terms of our contract. Rather than work out a private resolution, AMS chose to sue us and we intend to defend our rights.”
In the complaint, Atlanta Motor Speedway alleges that the wording in the contract prevents it from being terminated on those grounds.
“While Pep Boys has seen fit to litigate this matter in the media, Atlanta Motor Speedway prefers to allow the court system to provide due process," AMS president and general manager Ed Clark said in a statement released Friday afternoon. "Atlanta Motor Speedway is in compliance with all contractual obligations to Pep Boys. I am certain the judicial process will validate our position.”
Among other details in the contract:
• For the fall race weekend, Pep Boys received 1,000 grandstand tickets for each day, 30 cold pit/garage passes, 30 VIP parking passes, one 40-foot-by-60-foot display space and a tent with a capacity for 1,000 people in the hospitality area. It received 100 tickets for each day of the spring race weekend and one 64-person suite for both race weekends.
• Pep Boys received one 20-foot-by-60-foot trackside billboard, one 34-by-50 sign in the back of the grandstand, five 15-by-20 concourse signs, one 20-by-60 outside track billboard and several other flags and banners, including a 50-by-100 garage roof banner.
• Pep Boys could make shirts for all track personnel, aprons for ticket sellers and also received its logo on the track’s Web site’s front page. An interview during the PRN radio broadcast also was guaranteed.
• The speedway and Pep Boys each had to secure general liability insurance of $5 million apiece.
• If the race was not televised on ABC, ESPN or other comparable television network, then the Speedway would have to return an unspecified amount of money to Pep Boys. If it was pre-empted by a national emergency or catastrophe, there would be no refund.
• Pep Boys had the right to name the honorary starter and had approval for the national anthem signer and grand marshal.
• Pep Boys had exclusive negotiation rights for the 2010 and 2011 races until June 1, 2009.
• Pep Boys received status as the “Official Auto Parts Retailer” of the track.
• The contract also included a component of sponsorship for the track’s Thursday Thunder Legends Series and Friday Night Drag Series.
2009 Sprint Cup Race for the Chase Standings
Driver Standings after the AMP Energy 500
| 1 | Jimmie Johnson | 6248 |
| 2 | Mark Martin | -184 |
| 3 | Jeff Gordon | -192 |
| 4 | Juan Pablo Montoya | -239 |
| 5 | Tony Stewart | -279 |
| 6 | Kurt Busch | -312 |
| 7 | Greg Biffle | -340 |
| 8 | Ryan Newman | -402 |
| 9 | Kasey Kahne | -414 |
| 10 | Carl Edwards | -437 |
| 11 | Denny Hamlin | -448 |
| 12 | Brian Vickers | -556 |
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Comments
9 responses to "Atlanta Motor Speedway sues Pep Boys for Cup race sponsorship worth $1.6M". Post a Comment.
chris Stephens said:
May 7, 2009 at 3:28 PMWow all that for 3 million? what a deal if they throw in some hotdogs I might consider that myself, then again my pockets are spacious these days so I guess I will pass.
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» Confirm Abuse ReportAndrew Briscoe said:
May 7, 2009 at 4:09 PMInteresting clauses in the contract, to say the least. I'd also be interested in seeing the rest of the contract- the part that covers anything related to a date change. Likely, that doesn't exist like Pep Boys thinks it does.
Report as AbuseSMI will get their money one way or another.
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» Confirm Abuse ReportCathy Rooks said:
May 7, 2009 at 7:54 PMBald headed Bruton will not leave a stone unturned till he sucks them dry!!
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» Confirm Abuse ReportArt Tidesco said:
May 8, 2009 at 8:28 AMLegal process is an expensive way of settling a dispute, you have to wonder what was going on under the table :-)
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» Confirm Abuse ReportLen Grafstrom said:
May 8, 2009 at 3:22 PMThis same company also dumped out of their committment to Indy Car a few years ago. Personally I would never walk into one of their stores again.
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» Confirm Abuse Reportdave ginger said:
May 8, 2009 at 6:08 PMI wonder how the folks who were against the lady, who was considering suing for her injuries at Talladega, feel about NA$CAR suing?
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» Confirm Abuse ReportTimi McCain said:
May 8, 2009 at 11:46 PMDave Ginger, you make no sense! The girl who got hurt wouldnt sue nor would anone else. She got a call from Edwards and she said she CAN'T WAIT TO GO TO ANOTHER RACE! Hows that for you.
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» Confirm Abuse ReportMike Burns said:
May 9, 2009 at 4:26 PMThis company also had a policy of banning skilled union labor from all of their building sites...
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» Confirm Abuse Reportjerry swiatek said:
May 14, 2009 at 4:13 PMSomeone explain how Na$car suing is part of this story, or have I already had too many Whiskey presses today??
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