Friday, June 22, 2007

NASCAR sues ATandT

It's AT&T, I know, but Blogger won't let me put the & sign.

So NASCAR filed a suit against AT&T for $100 million, and the right to ban all telecommunications companies other than Nextel in 2008. This suit makes pretty much no since, because as we know all Cingular did was change their name to AT&T, it's not a new company or anything. There's even talks of the Nextel cup changing to the Sprint cup, how is that any different from Cingular changing to AT&T?!?! In Nextel's defense though, they're not doing anything wrong, because from their business standpoint they want to get all the exclusivity they can. What's wrong is NASCAR allowing them to do this, and NASCAR getting into this. NASCAR should want as many sponsors to come into the sport as they can get, and by trying to band all other telecommunications companies, they're digging their own grave. This isn't the only time NASCAR has done something like this. Remember the Sunoco/Shell thing? On NASCAR's website Sunoco is listed as the official fuel of NASCAR. Guess how many other official so-and-sos there are? I counted 54. Now if Sunoco can try and take legal action against shell, does that mean the others can do the same? Pedigree is the official dog food of NASCAR, so if Purina One wants to sponsor a car, would Pedigree take legal action against them?

Think about it. 54 different categories is a lot, and if all the official sponsors try to gain exclusivity, NASCAR is going to only be left with those 54 sponsors, because no other sponsors will be able to come in.

So NASCAR, don't dig your own grave and ban sponsors, because if you do win this suit, then the other official sponsors will follow the same route and you'll be left with nothing.

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