NASCAR Sponsor Battles

As potential suitors line up to replace Anheuser-Busch as the title sponsor of NASCAR's second-tier series, Sprint Nextel has this warning: Buyer beware.

When Nextel paid $700 million to replace R.J. Reynolds Tobacco Co.'s Winston brand as the title sponsor of NASCAR's premier series, it believed it was receiving a fertile platform to peddle its cell phones and service. Now its attention is divided between racing and the federal courts.

So, should a title sponsor that pays $70 million per year to help finance and promote the sport expect some protection against its rivals? NASCAR believes so, and it's willing to go to court to prove it.

"Exclusivity isn't new in sports. AT&T has done the same thing with American Idol. They have done the same thing with the NCAA Final Four. You pay a premium for that, and there are rights and privileges that go back to you."

Sponsor conflicts aren't new to NASCAR, but none has been at the $750 million level.
Two years ago, NASCAR and International Speedway Corp. had competing sponsorships from Gatorade and Powerade. Although NASCAR and ISC are owned by the same family, Gatorade was the official drink in Victory Lane at all ISC tracks, and Powerade was the official sports drink of NASCAR. That meant every car pulling into Victory Lane at half of the racetracks in the sport had to display Powerade bottles and Gatorade banners.

Jimmie Johnson, who represents Gatorade, once was fined $10,000 for knocking Powerade bottles off the top of his car in Victory Lane, and Jeff Gordon was warned for not driving to Victory Lane at Indianapolis Motor Speedway - presumably to avoid having any Powerade bottles placed on his car until television cameras were turned off. Powerade became tired of the controversy and dropped its deal with NASCAR last year. (Ouch, and that was nice piece of insight that, to the common, watch on weekends fan, did not know about.)

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