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Author Topic: AT&T Wants Logo on Burton's Car Immediately  (Read 1284 times)
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Cheryl
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« on: March 27, 2007, 12:27:45 PM »

From Jayski:
"Telecommunications giant AT&T filed a motion Monday, asking that its logo be added to Jeff Burton's #31 Chevy immediately. The motion was filed in U.S. District Court in Atlanta, where the company also filed its lawsuit against NASCAR. A hearing on the motion has not yet been scheduled. Burton is sponsored by cell phone service provider Cingular. AT&T recently took full ownership of Cingular as part of its recent merger with BellSouth and intends to eliminate the brand name. AT&T sued NASCAR on March 16 after racing series officials refused to allow AT&T to put its logo on Burton's car because of NASCAR's deal with Nextel, which sponsors NASCAR's top series -- the Nextel Cup. "We must bring this issue to resolution," John Burbank, vice president of marketing for AT&T, said in a statement. "The season is well under way and so are our rebranding efforts. This filing is a logical next step for us in the process, and one we must pursue so that we can simply move forward with our paint scheme -- something our agreement with NASCAR allows us to do." AT&T officials acknowledge they agreed to a contract with Childress' team that contains provisions saying Cingular can't increase the size or placement of its logo on the car and can't switch its sponsorship to another team. But they say the contract does not contain language preventing a logo change if Cingular is bought out by another company. NASCAR and Nextel officials declined comment when the lawsuit was filed. The lawsuit seeks permission to make the logo switch and damages for the "substantial harm" NASCAR has caused to the company. The lawsuit calls altering the design of the #31 car an "integral part" of the company's brand name switch, and that NASCAR's refusal to allow it inhibits the company's ability to "attract new customers and retain existing ones."(AP/ESPN.com), see past news on the AT&T lawsuit and Cingular on my #31 Team Schemes page.(3-26-2007)"

I think they should just step up and sponsor the Busch Series.  Wonder how NA$CAR would deal with that "conflict?"  A conflict between their greed and the deal they made with Next-Hell.   Evil

Cheryl
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super61
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« Reply #1 on: March 27, 2007, 04:04:08 PM »

isn't nextel having a name change soon too?? all of the tv advertising i have seen is "Sprint Nextel"... there are teams that can barely scrape up an associate sponsor, so why are we pissing off the current "big buck" sponsors?Huh?  i understand " the official sponsor of..." thing, i negotiated a an exclusive contract with pepsi here at the college, but the fridge in my office is stocked with coke!!!!!!!!


ken
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Desmond
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« Reply #2 on: March 27, 2007, 04:11:25 PM »

Want to know why NASCAR doesn't simply relent and acknowledge the name change from Cingular to AT&T?

How about the fact that AT&T/Cingular has more subscribers than Sprint Nextel and has better customer service ratings?  NASCAR cannot stand that happening, and will do anything in their power to help their sponsor.  Even if that means crushing their competition along the way. Evil
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Cheryl
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« Reply #3 on: March 28, 2007, 01:51:21 PM »

Here's an interesting article by Matt Crossman about the #31 and the recent "evolution" of the sport:

http://www.sportingnews.com/yourturn/viewtopic.php?t=191511

Cheryl
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Desmond
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« Reply #4 on: March 28, 2007, 04:15:49 PM »

Have you heard, "It's for me, but not for thee?"

I have that impression after reading the Matt Crossman article.
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Vivian
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« Reply #5 on: March 28, 2007, 09:14:52 PM »

And now Nascar speaks.  I just read this on Jayski.  Thanks, again, Jayski

UPDATE - NASCAR fires back: AT&T has been pressuring NASCAR with its lawsuit over how to paint the quarter panels on Jeff Burton's Nextel Cup #31 Chevy car as it rebrands Cingular under the AT&T logo. According to papers being filed in the suit, NASCAR officials told Stan Sigman, the president and CEO of Cingular, five weeks ago that in April 2005, George Pyne, NASCAR's CEO at the time, told the Richard Childress-Burton team that it would not allow a change in paint scheme or logos if Cingular was bought and had its name changed. NASCAR further said that its grandfathering of Cingular - after Nextel signed on as the series sponsor - "was tied directly to the Cingular Wireless brand and not the Cingular company." The papers further say that "it is generally not in NASCAR's interest to limit sponsors' participation in the sport." NASCAR suggested that AT&T could sponsor a Busch team or a Trucks team instead, if it wished. That is precisely the route that Verizon has taken. NASCAR's filing refers specifically to Pyne's letter to Childress, dated April 4, 2005. It specifies that "should Cingular be acquired by a third party, the Cingular brand is continually welcome as a team sponsor. However, should the company's name change, we will not allow any paint scheme or branding on the car promoting this new name." The papers go on to say: "NASCAR certainly has no desire to eliminate the Cingular brand from NASCAR Nextel Cup series competition." But, "unfortunately AT&T's decision to purchase Cingular and then to eliminate the Cingular brand puts NASCAR in the position of having to now enforce the rights granted Nextel in the series sponsorship agreement."(in part from the Winston Salem Journal)(3-28-2007)

I especially feel insulted that they would say AT&T could sponsor a Busch team or truck team instead.  What the heck are they thinking?  Their cup ratings are sagging and now they want to alienate more fans and sponsors? 

Wow, hard to believe that they are just killing their sport like this.  So very sad...I will never buy anything associated with Nextel and I think I have just ceased buying any more Nascar crap...
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old hot rodder
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« Reply #6 on: March 28, 2007, 10:17:39 PM »

Interesting, to say the least. Nextel is certainly calling the shots on this one. Sadly, somebody really thinks that a lot of consumer decisions are made based upon what these marketing types think we react to,....well, so sorry folks, but I don't use any products because they do or do not sponsor ANYTHING. Darn, I wish Nastycar could understand that point. My son consumes more Budweiser than I care to admit, but that started long before he ever heard of Nascar.
 Let's take liquor for instance. I have had a deep appreciation for good whisky for a long time. I really don't care who is sponsored by one or the other, but I am surely not going to drink Black Jack instead of Crown Royal just because BJ sponsors one car or another, or vice versa.
  So, the old, cynical curmudgeon says----Much ado about nothing.!! Grin
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William James
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« Reply #7 on: March 28, 2007, 11:49:39 PM »

I'm  in agreement with everyone else on this.  I typically buy products based on friends recommendation, personally experience or perceived value.  I could give a cowpie what or who the product sponsors in most cases (there's a few company's sponsoring groups/activities which conflict with my personal values and I won't touch free samples of their products).
I'm also more than a little concerned about sponsors contributing 20 million or so dollars to sponsor a race team and reach such a small portion of the national or international market (the 70 million fans notwithstanding Grin).  Their willingness to throw that much money at such a relatively small market leads me to believe their profit margin is out of sight.
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« Reply #8 on: March 28, 2007, 11:55:39 PM »

Their willingness to throw that much money at such a relatively small market leads me to believe their profit margin is out of sight.[/quote]

I think the sad fact is that almost all these corporations have way too high profit margins.   Angry  Except Ford and GM...

Cheryl
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drpep (brian)
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« Reply #9 on: March 29, 2007, 12:47:47 AM »

 Sponsorships are not always about reaching the consumer/NASCAR fan. Many are used to reach new clients and try to increase business with current clients. A beer sponsor will bring store owners to a race and give them the run of the hospitality tent and a visit with the driver but you can be sure business will be discussed at some time. Kind of like client customer golf games.
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super61
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« Reply #10 on: March 29, 2007, 02:16:16 AM »

come on y'all, that fender is large enough for another logo!!!

ken
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Vivian
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« Reply #11 on: March 29, 2007, 09:33:46 PM »

I am just glad our sponsorship of a local fella reaches people and it costs next to nothing.  Maybe we should go back to the local Saturday night short tracks. 

Ken, if you were closer, I would help....
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sally
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« Reply #12 on: March 29, 2007, 10:07:31 PM »

Well, Next hell is certainly 'reaching' me.  I wouldn't have one of their phones if they paid ME.  And yesterday, I filled up with Shell.  So much for 'brand loyalty'.  I don't think sponsors realize that things are rapidly changing in Nascar...wonder how many of the 'new generation' fans buys a product just because it's a sponsor?  Not me, that's for sure.

Sally
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old hot rodder
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« Reply #13 on: March 29, 2007, 10:14:06 PM »

You know, this is a good thread. A number of good points are being raised. I agree James and Cheryl. Large profit margins and too much $ being spent on some of this stuff.
 When you think about it, how much does the staff engineer and a bunch of the other tech types really add to our overall enjoyment of the cup races? How much of all the in house staff could really be cut? Why does it cost so much to field a race car?
 And why oh why does Nascar have to do all the inspections etc? Biffles car was a fraction of an inch too low. (after 500 laps). Big deal.
 Let 'em race!
 So says the old curmudgeon! Grin Grin
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William James
super61
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« Reply #14 on: March 30, 2007, 12:19:28 AM »

the "growth" of nas$car has forced these teams to spend a gross amount of money to be competetive. you cannot keep the teams small and be competitive if the engine builder is changing rear tires on Sunday. it's all about exposure. if someone if tossing around 750 million dollars, they want something for it. and breaking even is not an option. with busch pulling out of the na$ca$h world soon, i can see walmart taking over title sponsorship and then telling coke or tide that they cannot sell their products anywhere but at walmart. this is where this is heading. and king puhbah don't give a damn!!!!!

my 2 cents
ken
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