NASCAR countersues ATT for $100 Million

UPDATE A reader writes, What kind of message does it send to other big potential sponsors when NASCAR is so aggressive in pursuing legal action against AT&T? If I was a corporate type looking to enter NASCAR, I would certainly take note of this. Ira F.

Dear Ira, We doubt NASCAR expects to win. They just want to show Nextel that they did everything in their power to protect their rights. Mark C.

06/17/07 Today NASCAR filed a counter claim in U.S. District Court against AT&T Mobility/Cingular Wireless and AT&T Inc., alleging breach of contract, fraud and misrepresentation, and conspiracy to aid and abet wrongful interference with Nextel’s exclusive sponsorship agreement. NASCAR is seeking a minimum of $100 million in damages. The NASCAR Rule Book governs participation in the NASCAR Nextel Cup Series and its contents are agreed to in writing by all NASCAR members and participants. Cingular is a member of NASCAR and agreed to abide by all NASCAR rules and regulations when its representatives signed official documents such as the NASCAR Membership and License Application. NASCAR’s suit further alleges that AT&T, Cingular and its representatives breached its explicit agreements with NASCAR when they re-branded the #31 car; entered into contract with RCR knowing that they would litigate against NASCAR; and when they sought to ambush Nextel’s exclusive sponsorship rights. NASCAR also submitted its response today to a suit filed by AT&T Mobility/Cingular Wireless by soundly rejecting each of their claims. The response demonstrates the clarity of NASCAR’s rule book and the baseless allegations made by AT&T Mobility/Cingular Wireless in its attempts to re-brand the #31. NASCAR PR

"Cingular’s refusal to follow NASCAR rules and accept NASCAR’s denial of this paint scheme, and the filing of this lawsuit, has undermined NASCAR’s authority as the sanctioning body of stock car auto racing," said the suit.

Most notable among those "certain actions" is that "NASCAR may exercise its discretion not to offer NASCAR membership to Cingular or AT&T for the 2008 NASCAR Nextel Cup Series season."

NASCAR also contends it should have the right to not offer a driver and car owner agreement for 2008 to any car sponsored by a telecommunications company other than Nextel.

Alltel sponsors Ryan Newman for Penske Racing.