AT&T sues NASCAR over desired No. 31 logo change

HAMPTON, Ga. -- In a case that could have far-reaching implications for the structuring of sponsorship contracts in NASCAR racing, AT&T has filed suit against NASCAR in U.S. District Court in Atlanta, Sporting News confirmed Friday.

At issue, according to published reports, is the re-branding of Cingular Wireless as AT&T Wireless resulting from a federally approved merger between the two companies. Cingular sponsors the No. 31 Chevrolet owned by Richard Childress and driven by Jeff Burton.

Back in black

Robby Gordon's No. 7 Ford started out Friday with Motorola decals on the hood and fenders. By the time the cars hit the track for practice at Atlanta Motor Speedway, the decals were gone.

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Sprint/Nextel, a competitor of AT&T in the wireless communications arena, is the title sponsor of the Nextel Cup Series. The sponsorship agreement between Sprint/Nextel and NASCAR precludes any other wireless companies from sponsoring cars in the series. Alltel (which sponsors the No. 12 Dodge of Ryan Newman) and Cingular were grandfathered into the series because their agreements predated the title sponsorship of Sprint/Nextel.

Due to a planned phase-out of the Cingular brand, AT&T is seeking to replace the Cingular logos on Burton's car with AT&T logos. Talks between NASCAR, Richard Childress Racing and AT&T reportedly reached an impasse.

It is AT&T's contention that nothing in its sponsorship contract prohibits a name change -- only that AT&T cannot increase its brand position on the car (Cingular is the primary sponsor) or transfer the sponsorship to another car.

NASCAR spokesperson Kerry Tharp said the sanctioning body was aware of the lawsuit only through reports in the media. It is NASCAR's official policy not to comment on the specifics of litigation while it is in process.

The filing of the suit preempted Burton's hope that a reasonable solution could be reached.

"It's going to have to be resolved," Burton told reporters Friday morning. "There comes a point where there are decisions that have to be made. From a company standpoint, we can't operate without sponsorship. We're going to have to get it resolved. (Continued)