NASCAR/NHRA responds to R.J. Reynolds sponsorhip plans for 2002

Posted By Terry Callahan
Motorsports Editor, The Auto Channel

July 18, 2001

Quotes from NASCAR President Mike Helton and NHRA President Tom Compton in response to R.J. Reynolds Tobacco Co.'s sponsorship plans for 2002:

"We are fortunate to have had a long-term relationship with Winston and Sports Marketing Enterprises and look forward to that expanding in the future. Winston has played a key role in the growth of NASCAR."--NASCAR President Mike Helton

"We know how much RJR and Winston value our 27-year partnership and appreciate how closely they have worked with us in the decision-making process. RJR's historical commitment to the sport and deep-rooted belief that NHRA Drag Racing is one of the best sponsor values in all of motorsports is reflected in the extraordinary support they have always provided to the NHRA, tracks and competitors alike. While Winston must relinquish title sponsorship of NHRA Drag Racing in order to comply with the MSA, we are continuing to work in partnership to explore other ways to maintain involvement with the sport next year and beyond." --NHRA President Tom Compton

The following is an excerpt from the Master Settlement Agreement that applies to brand name sponsorships and corporate name sponsorships.

III. PERMANENT RELIEF

(c) Limitation of Tobacco Brand Name Sponsorships.

(1) Prohibited Sponsorships. After the MSA Execution Date, no Participating Manufacturer may engage in any Brand Name Sponsorship in any State consisting of:

(A) concerts; or

(B) events in which the intended audience is comprised of a significant percentage of Youth; or

(C) events in which any paid participants or contestants are Youth; or

(D) any athletic event between opposing teams in any football, basketball, baseball, soccer or hockey league.

(2) Limited Sponsorships.

(A) No Participating Manufacturer may engage in more than one Brand Name Sponsorship in the States in any twelve-month period (such period measured from the date of the initial sponsored event).

(B) Provided, however, that

(ii) (i) nothing contained in subsection (2)(A) above shall require a Participating Manufacturer to breach or terminate any sponsorship contract in existence as of August 1, 1998 (until the earlier of (x) the current term of any existing contract, without regard to any renewal or option that may be exercised by such Participating Manufacturer or (y) three years after the MSA Execution Date).

(4) Corporate Name Sponsorships. Nothing in this subsection (c) shall prevent a Participating Manufacturer from sponsoring or causing to be sponsored any athletic, musical, artistic, or other social or cultural event, or any entrant, participant or team in such event (or series of events) in the name of the corporation which manufactures Tobacco Products, provided that the corporate name does not include any Brand Name of domestic Tobacco Products.

Text provided by Marie Mason

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