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NASCAR sues AT&T for $100 million over sponsorship agreement

Published: Jun 18, 2007

ATLANTA - NASCAR filed a $100 million counter claim against AT&T Inc. on Sunday, accusing the wireless provider of interfering with its exclusive sponsorship agreement with rival wireless company Nextel.

The suit also asks that NASCAR be granted the right to kick AT&T - and all telecommunications companies other than Nextel - out of its top series in 2008.

NASCAR filed the suit electronically in the U.S. District Court in Atlanta, alleging breach of contract, fraud and misrepresentation, and conspiracy to aid and abet wrongful interference with Nextel.

NASCAR and AT&T have been battling all season about NASCAR's refusal to allow AT&T to put its logos on Jeff Burton's car. Burton and his Richard Childress Racing team have a sponsorship agreement with Cingular, which has since been purchased by AT&T.

AT&T is rebranding the company, but NASCAR would not allow the logos to be changed, citing its agreement with Nextel. Cingular and Alltel were grandfathered into the sport when Nextel entered in 2004, but no changes are permitted to their deals and no other telecommunications companies are allowed into the sport.

NASCAR claims Nextel has exclusivity through its 10-year, $700 million investment.

AT&T sued, and U.S. District Judge Marvin Shoob issued a preliminary injunction last month that allowed the Cingular logos to be replaced. He also barred NASCAR and any entity affiliated with it from interfering with AT&T's rights as primary sponsor of the car in the Nextel Cup series.

Burton has raced with AT&T logos since the May 19 ruling. He and Richard Childress both said Sunday they were close to a contract extension for both the driver and AT&T.

In its counterclaim, NASCAR charges that AT&T and Cingular breached its contract with NASCAR, noting the company agreed to abide by NASCAR rules.

WALTRIP DOES WELL: Michael Waltrip spent most of this week as a car owner, making a pair of big picture decisions aimed to help his struggling team.

Then, in one of the rare opportunities he's had to be a driver this season, he gave Michael Waltrip Racing the huge boost it so desperately needed. Waltrip, in only his third race of the season, finished 10th Sunday at Michigan International Speedway.

"It's really great for our team to have run well all day," he said. "My guys did a great job on pit road. My guys are a little rusty, but you would never have known it."

Waltrip, who has failed to qualify in 12 of the 15 events this season, was exhausted after completing 199 of the 200 laps.

"Today was a hot day and I haven't gotten to race this much in a while, but I felt just as good at the end as I did in the beginning," he said. "But once the checkers fell, then I started feeling bad - hot, tired and glad it was over."

It was Waltrip's best finish since June 19, 2005, when he finished seventh here. But he won't get the chance to follow it up next week: Waltrip decided to let Terry Labonte drive his No. 55 Toyota at Infineon Raceway. Labonte finished third on the road course last season, and as the most recent former series champion not in the top 35 in the owners' points he's assured a spot in the field.

TOYOTA BOUND? Joe Gibbs Racing lost the race to sign Dale Earnhardt Jr., and now must focus on its 2008 plans. If joining Toyota is part of the deal, team president J.D. Gibbs isn't saying.

JGR's contract with General Motors is up at the end of this season, and the powerful three-car team could be the anchor of Toyota's NASCAR effort. But Gibbs dodged the subject before Sunday's race at Michigan International Speedway, refusing to comment on any potential discussions with the automaker.

"We wanted to wait and see what happened with the Junior deal," Gibbs said. "We've been a partner with [GM] for 16 years. We're going to look at it and evaluate and make sure we're on the same page.

"Obviously, is Toyota out there as a possibility? I think they have probably talked to a number of different groups. … We just want to make sure, as the sport changes, how do we stay where we need to be at JGR to stay ahead of the curve? And a big part is manufacturer."

PIT STOPS: Jeff Gordon has a 264-point lead in the standings. Denny Hamlin moved up one spot to second. ... Dodge had a horrible race - Reed Sorenson was the highest-finishing driver at 23rd - but teammates David Stremme and Juan Pablo Montoya were 40th and 43rd. ... Ryan Newman had an early tire problem that cost him several laps, then was spun by Jeff Green on a restart. "Jeff Green ran out of talent there ... and caused a big crash," Newman said after finishing 37th. ... DEI got strong runs from Martin Truex Jr. (third), Dale Earnhardt Jr. (fifth) and rookie Paul Menard was a season-best 12th.

The Associated Press