AT&T, NASCAR reach settlement

AT&T has been allowed by NASCAR to go ahead with their transition from Cingular to AT&T, and the company's logos have been put back on Burton's car today, having raced unbranded for the past two races after a court ruling forced them to take the logos off the car.

"This agreement represents compromise from all sides that ultimately serves the sport well," said NASCAR Chairman and CEO Brian France. "No one likes litigation, most of all the NASCAR fans, and it was time to find a mutually agreeable resolution."

"We're now happy to move forward with the exciting conclusion of the season as we approach the Chase for the NASCAR NEXTEL Cup."

In March this year AT&T sued NASCAR after they were prevented from changing the branding on Jeff Burton's car, while going ahead with their brand change after completing the acquisition of Bell South, co-owners of the Cingular brand.

An injunction allowed AT&T to put their logos on Burton's car in May but NASCAR then countersued AT&T for US 100 million dollars in damages. NASCAR has dropped the case and as part of their agreement, AT&T will cease the sponsorship of Burton's car from 2009 onwards.

"This agreement is the right step taken at the right time. It provides a clear path forward for the sport and its fans, for Richard Childress Racing and Jeff Burton, and for AT&T, which can use its brand on the No. 31 Car," said Dave Garver from AT&T's wireless unit.

Cingular had been the main sponsor of the No. 31 car since 2001, and was allowed to continue to back the team when Sprint Nextel signed the deal to become NASCAR's top division title sponsor, under grandfather clauses.

Sprint officers declared themselves satisfied with the settlement, which will allow them full exclusivity in the telecommunications category from 2009. In 2003, Sprint Nextel signed a ten-year deal with NASCAR said to be worth around US 750 million dollars.

"This is a great solution for NASCAR, the fans, Richard Childress Racing and Sprint Nextel," said Tim Kelly, chief marketing officer for Sprint. "We accomplished our ultimate goal of protecting our unique position with NASCAR while giving the No. 31 team ample time to transition to a new sponsor.

"We will continue to focus on bringing new and unique innovations to NASCAR fans for the betterment of the sport."

Alltel, another telecommunications brand which sponsors Ryan Newman's No. 12 Penske Racing car will probably face the same situation as AT&T and could be set to cease their backing before 2009.