Nextel President and CEO Tim Donohue, left, and NASCAR chairman Brian France at a news conference in 2004. Credit: Autostock

France: Nextel merger will benefit NASCAR

Though NASCAR chairman Brian France was unaware that his premiere series' sponsor would make a business merger until it was reported in the media, he told NASCAR.COM Wednesday that he has no outstanding concerns regarding Nextel's partnership with Sprint Corp.

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And, in fact, France said he's excited by the merger's potential to create a deeper pool of resources within the racing industry.

"I have no concerns about this (merger)," France said. "First of all, I'm excited for Nextel. They've always said they wanted to grow their company, and they're doing that. With the extra resources I think it'll help grow NASCAR, as well."

Makes sense. According to the Associated Press, the deal will create the third largest wireless telephone provider in the nation, behind only Cingular Wireless and Verizon Wireless. The AP report said the deal was structured as merger of equals that values each company at about $35 billion.

France said the development will not change the name of NASCAR's premiere series, which will remain the NASCAR Nextel Cup Series, nor the details of the current 10-year naming rights contract between NASCAR and Nextel.

Nextel forks out some $75 million annually for the rights to serve as NASCAR's Cup Series title sponsor, and president Tim Donahue said two weeks back during his "state of the sport address" in New York that they were, in fact, seeing a return on that investment.

Credit: Autostock

France has spoken with Nextel executive Tom Kelly about the merger, but has yet to discuss the matter with Donahue, as Donahue has been focused on the transition to Sprint Nextel.

"They couldn't contact us about it because of various rules and regulations that prevent (discussing it)," France said. "They gave us what they could, when they could, which was very recently."

Both France and Donahue carried a gung-ho attitude regarding their partnership two weeks ago during the "state of the sport address" during banquet week in New York City, so it seems the relationship has taken no ill turns.

France is quick to point out, however, the importance of Nextel's knowledge on how best to use NASCAR to grow their brand.

"This clearly will build a bigger, better company for the folks at Nextel, which in turn will benefit NASCAR," France said. "There will be more resources, deeper resources.

"And it's important that Nextel knows already how to take advantage of NASCAR, and to teach their new partners how to do so. It's a big thing, and we want to help them grow their new company."

Sprint has dabbled in NASCAR before. They sponsored the No. 45 Chevrolets and Dodges driven by Adam and Kyle Petty for several years before pulling out following the 2002 season. But France says this is an entirely different animal.

"The position Nextel has is much different than Sprint's experience with just one race team," France said.