NASCAR gets nasty: sues AT&T for $100 million

The simmering battle between NASCAR and AT&T took on a nastier note today as the stock car racing association filed a $100 million lawsuit against the telecommunications giant.  NASCAR is accusing AT&T with interfering with its exclusive sponsorship agreement with rival wireless company Nextel.  According to an Associated Press report the suit 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. NASCAR’s suit alleges breach of contract, fraud and misrepresentation, and conspiracy to aid and abet wrongful interference with Nextel. You may recall last month AT&T outraced NASCAR, in court, getting a  federal judge to  issue an injunction  that  said NASCAR  could not prevent AT&T from featuring its logo on Jeff Burton’s No. 31 Richard Childress Racing Chevrolet. U.S. District Judge Marvin Shoob in Atlanta issued a preliminary injunction barring NASCAR and any entity affiliated with it from interfering with AT&T’s rights as primary sponsor of the car in NASCAR Cup Series races.   The battle began in March when AT&T sued NASCAR because racing group wouldn’t let the telecommunications vendor change the logo on Jeff Burton’s race car. The issue centered around Burton’s No. 31 car, which his sponsored by cell phone service provider Cingular. AT&T recently took ownership of Cingular as part of its recent merger with BellSouth and is eliminating the brand name.  At the time AT&T said NASCAR’s refusal to allow it inhibits the company’s ability to “attract new customers and retain existing ones.” Sprint Nextel sponsors NASCAR’s Nextel Cup and has exclusive rights for the series. Attorneys argued the only exceptions are companies, including Cingular, that already sponsored cars when Nextel reached its agreement with NASCAR. The AP says AT&T is re-branding the company, but NASCAR would not allow the logos to be changed, citing its agreement with Nextel. Cingular and Alltel were grandfathered into the sport when Nextel entered in 2004, but no changes are permitted to their deals and no other telecommunications companies are allowed into the sport. NASCAR claims Nextel has exclusivity through its 10-year, $700 million investment.