AT&T Wireless - Controversies - Cingular/AT&T NASCAR Sponsorship Controversy

Cingular/AT&T NASCAR Sponsorship Controversy

Cingular Wireless began its sponsorship of the #31 Chevrolet, owned by Richard Childress Racing, in the NASCAR Winston Cup Series in 2002. Two years later, when Nextel Communications (now Sprint Nextel) purchased the naming rights to NASCAR's top division (rebranding the division as the Nextel Cup, and later the Sprint Cup), Cingular and Alltel, sponsor of the #12 Dodge (owned by Penske Racing and driven by Ryan Newman), were allowed to stay as sponsors under a grandfather clause. In early 2007, following its purchase by AT&T, Cingular began a re-branding effort to the AT&T Mobility brand. NASCAR quickly claimed that a clause in their contract with Sprint Nextel would not allow Cingular to change either the name or brand advertised on the #31 car.

After trying and failing to persuade NASCAR to approve the addition of the AT&T globe logo to the rear of the car, AT&T filed a lawsuit against NASCAR on March 16, 2007. On May 18, AT&T won a preliminary injunction in the United States District Court for the Northern District of Georgia in Atlanta and, following a failed emergency motion for a stay by NASCAR on May 19, re-branded the #31 car, now driven by Jeff Burton, in time for the Nextel All-Star Challenge that evening. NASCAR was later granted an appeal to be heard on August 2.

On June 17, NASCAR announced it had filed a US$100 million dollar lawsuit against AT&T and would like AT&T and all other telecommunications companies out of the sport in 2008.

On August 13, a ruling by the United States Court of Appeals for the Eleventh Circuit cleared the way for NASCAR to prevent AT&T Inc. from featuring its logo on the car. The 11th Circuit threw out a lower court's ruling that prevented NASCAR from stopping AT&T's plans. The appeals court remanded the case to the district court.

At first practice for the Sharpie 500 at Bristol Motor Speedway on August 24, the #31 car was colored orange and black, but was bare; that is, no primary sponsor (but associate sponsors appeared) were on the car, similar to Formula One cars run in races where tobacco advertising was prohibited. The pit crew wore grey Richard Childress Racing shirts and Burton had a plain orange fire suit with associate sponsors. The car which carried a "subliminal advertising" scheme arrived in a black hauler with only the number 31 on the side. NASCAR officials said the car would not have made it through inspection with the AT&T logos. During that weekend, AT&T claimed that two alternate paint schemes proposed by AT&T—one advertising its "go phone" and another with the old Cingular slogan "more bars in more places" that AT&T recently brought back—were rejected by NASCAR. The Go Phone scheme had been used in the past. NASCAR later denied these claims.

The car remained bare on race night on August 25, although ESPN aired the AT&T logo during shots from its in-car camera. Fox Sports had done so earlier in the dispute, with the words "Cingular is the new AT&T" on-screen during these shots.

On September 7, 2007, a settlement was reached where AT&T Mobility could remain on the #31 car until the end of 2008, but the associate sponsorship of the #29 Nationwide Series Holiday Inn Chevrolets not affected because they are in lower series.

Richard Childress Racing announced the AT&T Mobility sponsorship will move to Grand American Road Racing Association sportscar racing in 2009 with the sponsorship of the Childress-Howard Motorsports #4 AT&T Pontiac Daytona Prototype sportscar. Childress is a part-owner of this team.