Cingular merger could hamper Childress
By Bob Pockrass
Wednesday, March 22, 2006
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BAMBI MATTILA / NASCAR SCENE /
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NASCAR officials say they have informed Richard Childress Racing that if Cingular Wireless changes its name to AT&T, as expected after a recent merger, AT&T would not be allowed on Jeff Burton's No. 31 car.
NASCAR made the ruling based on its interpretation of its contract with series sponsor Nextel.
Cingular and Alltel, as well as Samsung/Radio Shack with Texas Motor Speedway, were grandfathered in as existing sponsors when the Nextel Series sponsorship contract was signed in 2003.
"It's pretty clear that they can't transfer a name due to a sale," NASCAR Vice President for Corporate Communications Jim Hunter said March 17.
Executives from Cingular would not comment March 16 when asked about what would happen to the company's sponsorship.
"Right now, Cingular is in it and is in it for the long haul," team owner Richard Childress said March 19. "That's about all I can say."
Hunter said that Cingular could negotiate with Nextel to try to transfer the name and keep the sponsorship. But Michael Robichaud, vice president for sports marketing for Sprint Nextel, said there are no plans to negotiate.
One option could be for Cingular to move to the Busch Series, where any cellular company can provide sponsorship.
"Cingular can stay on the car indefinitely, but the way it was agreed, it was [only] Cingular and Alltel and with their respective teams," Robichaud said. "It was really out of respect for the owners and the deals that they have. ... We wanted to allow those relationships to stay as long as they were, but we're in a very competitive business, and we had to contemplate the evolution of the industry.
"The agreement we reached was that they couldn't improve their position. They just can't change the brand if they make a business decision outside of [racing]."
- Mentioned Drivers:
- Jeff Burton
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