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NASCAR: RJR may follow Union 76 out of sport
ESPN.com ^ | Tuesday, February 4 | By Robin Miller

Posted on 02/04/2003 4:59:35 PM PST by AStack75

R.J. Reynolds and NASCAR recently announced this year's Winston Cup point fund will be a record $17 million. What they didn't say was that whoever snares the $4,250,000 for first place in 2003 may also be the final Winston Cup champion.

ESPN.com has learned that R.J. Reynolds is seriously looking at ending its long and rich association with the stock car world after 33 years. This follows by just a few days Union 76's announcement that it would cease its 50-year relationship as NASCAR's official fuel and oil. A top-level source inside the tobacco industry and another source close to the situation said RJR is prepared to shut down this remarkable partnership and that NASCAR is already pursuing a replacement.

"There are five years left on the contract, but RJR would walk away as the title sponsor if a suitable replacement could be found," said the source, who requested anonymity. "With all the lawsuits and litigation surrounding the tobacco industry now, Winston feels like it's time to step aside.

"And NASCAR is actively looking for a new title sponsor."

UPS, Coca-Cola and McDonald's are thought to be very interested in hitching their wagon to the marketing monster that has become NASCAR.

"We just re-established our relationship with R.J. Reynolds and we look forward to continuing our long-standing and beneficial relationship," said NASCAR vice president of corporate communications Jim Hunter when asked about the possibility of losing NASCAR's sponsorship.

Asked if NASCAR had a waiting list of potential title sponsors in the event RJR did bail before its contract expired, Hunter said:

"In a hypothetical world, if the need ever came, we think it's a pretty good property."

Denny Darnell, senior manager of media relations for Sports Marketing Enterprises, denied the report had any validity.

"That would be a shock in that we have a 33-year relationship with NASCAR and we have a multiyear contract with NASCAR," said Darnell, whose agency handles all of RJR's involvement with the series that has exploded into the national consciousness the past decade.

The Winston name and logo has been synonymous with NASCAR for 33 years.

"Our intentions are to continue to grow with NASCAR in the future."

NASCAR's drivers, teams and partners have reaped the rewards of an estimated $100 million in purse, bonus and point fund money since becoming the Winston Cup Series in 1971.

Rusty Wallace also reacted with disbelief, but said replacing RJR would be nearly impossible.

"First of all, I've never heard one word on the subject of RJR leaving and I'd have a hard time believing it," replied the 1989 Winston Cup champ. "The Union 76 thing was a big surprise, but this would be a shocker.

"To lose a sponsorship like Winston would be catastrophic."

Wallace knows firsthand all the little things RJR has done throughout the years.

"When a lot of us were coming up we didn't have anything and Winston would buy us uniforms. If you were a little stock car track Winston would supply all the paint so we had all these red and white tracks across the country.

"I mean they did so many good things for so many people."

Winston, which ended its sponsorship of the National Hot Rod Association and professional golf in order to comply with the Master Settlement Tobacco Agreement, dropped NASCAR's No Bull 5 Program for 2003 after a five-year run. That was a bonus program that offered $1 million to a driver and a NASCAR fan in five selected events.

RJR also continues to sponsor NASCAR's Winston West stock car series.

While the Indy Racing League has failed to keep its title sponsors (Pep Boys and Northern Light) and is currently seeking one, Championship Auto Racing Teams had PPG Industries during 1979-96, FedEx during 1997-2002 and now has Bridgestone and Ford. After losing Winston, the NHRA acquired POWERade last year.

But no racing series can approach the numbers (years and dollars) that NASCAR has had with Winston.


TOPICS: Culture/Society; Miscellaneous
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For the NASCAR-loving FReepers. I'd hate to see them go because of all the support RJR has give to NASCAR. Plus the free cigarettes at the races was great too!
1 posted on 02/04/2003 4:59:35 PM PST by AStack75
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To: AStack75
RJR is concerned about health hazards associated with fuel and exhaust vapors, and the injuries that are endemic to vehicular sports.

RJR aspires to be a good, socially conscious, corporate citizen.
2 posted on 02/04/2003 5:07:04 PM PST by marron
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To: AStack75
Just kidding...
3 posted on 02/04/2003 5:07:36 PM PST by marron
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they're afraid the japanese cars will come and win everything. time to bow out gracefully before it becomes the Sony 500 in a bidding war.


4 posted on 02/04/2003 5:11:53 PM PST by KneelBeforeZod (Deus Lo Volt!)
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To: AStack75
An interesting bit of history here . . .

When Junior Johnson was a car owner in 1970 he found himself without a major sponsor for his team. He met with a bunch of potential corporate sponsors, but to no avail.

He finally got in touch with the RJR people (or whoever their corporate predecessor was), and since they weren't familiar with NASCAR they met with him, watched a race, did some research, etc. What Johnson didn't know was that they had a huge pile of advertising cash on their hands because cigarette ads on television had just been outlawed.

When they finally got back to him, he got a very unexpected answer.

"We'll do the whole thing," they said.

The whole thing? What did that mean?

"We don't just want to sponsor your car," they explained, "We want to sponsor all of NASCAR. Everything."

Hence, the Winston Cup was born.

5 posted on 02/04/2003 5:11:57 PM PST by Alberta's Child
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To: AStack75
I watched Winston Cup racing for years before I associated it with RJR. The McDonalds Cup just doesn't sound right.


Look for A.J.'s kid, Larry, this year in the no.14 Harrah's Dodge Intrepid.
6 posted on 02/04/2003 5:17:39 PM PST by WSGilcrest (R)
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To: WSGilcrest
"The McDonalds Cup just doesn't sound right."

I hope they don't become the sponsor...

People just go to McDonalds for the crashes anyway.

7 posted on 02/04/2003 5:22:25 PM PST by Mad Dawgg (Michael Jackson the other white meat.)
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To: WSGilcrest
It will be called "Budweiser Cup" instead of Winston Cup-Anheiser Busch has been chompin' at the bit on this for years.
8 posted on 02/04/2003 5:23:04 PM PST by mrmargaritaville
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To: AStack75
Sounds like trouble for the National Billboard Racing Association.
9 posted on 02/04/2003 5:27:10 PM PST by IowaHawk
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To: mrmargaritaville
I think you've got it, by jove.
One of the beer companies will step up and the bucks will double.
Go 99.
10 posted on 02/04/2003 5:31:36 PM PST by dtel (Texas Longhorn cattle for sale at all times. We don't rent pigs)
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To: mrmargaritaville
It will be called "Budweiser Cup"

Better that than "The Wonderbra Cup".

11 posted on 02/04/2003 5:35:59 PM PST by tacticalogic (Controlled application of force is the sincerest form of communication.)
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To: AStack75
So, in other words, the terms of the tobacco settlement reduced the value of the RJR/NASCAR relationship to RJR, so they are making a business decision to drop sponsorship.

I have never been a NASCAR fan, however I suppose I'm a kindred spirit with the fans in that I enjoy swimming pools with diving boards and deep ends - and of course the litigation ruined that for me.

So I guess we're all in the same boat. And my advice is... ...invest in Nerf! (because in a few years that's pretty much the only industry that will be left in the US).

12 posted on 02/04/2003 5:42:30 PM PST by The Duke
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To: AStack75
How about the N.O.W. Powder Cup ?
13 posted on 02/04/2003 5:44:12 PM PST by arly
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To: tacticalogic
Or the VIAGRA cup.
14 posted on 02/04/2003 5:51:49 PM PST by davetex
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To: tacticalogic
I wouldn't mind the ads for the wonderbra cup-probably alot like the Miller Lite ads that the feminist hate.
15 posted on 02/04/2003 6:01:21 PM PST by mrmargaritaville
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To: AStack75
Greetings from the heart of NASCAR Country. I feel certain that fans of the, ummmm, "sport" have nothing to fear. Another sponsor will come along, because no one ever went broke underestimating the taste or intelligence of the public.


16 posted on 02/04/2003 6:09:07 PM PST by southernnorthcarolina (optional tag line, printed after my name)
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To: dtel
As a Jeff Burton fan (Go 99) and likely a NASCAR fan-here's a good one for you. I used to work for a major oil company. About 10 years ago the NASCAR fuel contract was coming up. and Union 76 was thinking about pulling out-very few stations in the east,especailly the southeast so they thought they weren't get much of a bump from being the "Official fuel of NASCAR". All of the majors were lined up to bid on the contract-Exxon, Mobil, Amoco-that is until they found out that if they took over the contract they would have to remove ALL of the buried gas tanks at all of the WC tracks and replace them with fiberglass. EPA rule-when a gas station changes ownership (and all of the "gas stations" at WC tracks are considered just that-gas stations) all steel tanks must be removed, surrounding soil remediated, and the tanks replaced with fiberglass. When the potential bidders found this out the all said "thanks but no thanks"-so the contract reverted back to 76 almost by default.
17 posted on 02/04/2003 6:09:33 PM PST by mrmargaritaville
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To: KneelBeforeZod
"they're afraid the japanese cars will come and win everything.
time to bow out gracefully before it becomes the Sony 500 in a bidding war."

At which time I officially morph into a Bonsai freak (OK, maybe back to model airplanes).

It's bad enough when they cut the back doors out of a Taurus and call it a stock car.

"Run what you brung" = real racing!!

(But the riceburners are indeed coming, just don't know how soon. Sometimes it's nice to be old.)

18 posted on 02/04/2003 6:16:59 PM PST by norton
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To: Mad Dawgg
Judging from the court cases, "People just go to McDonalds for the crashes anyway."

Should be "crash and burn"

19 posted on 02/04/2003 6:19:48 PM PST by norton
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To: mrmargaritaville
Somehow, your post rings painfully true.

Fireball Roberts would feel out of place today in any event.

Maybe I should dig out those old Sterling kits afterall.

20 posted on 02/04/2003 6:25:10 PM PST by norton
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