BUSINESS: Winston sticks with NASCAR; Forced to drop NHRA title sponsorship

Posted By Terry Callahan
Motorsports Editor, The Auto Channel

July 18, 2001

WINSTON-SALEM, N.C. - R. J. Reynolds Tobacco Company (RJRT) today announced that the company's Winston brand would continue its 30-year partnership with the National Association for Stock Car Auto Racing (NASCAR) for the 2002 season. The announcement was made in compliance with the Master Settlement Agreement (MSA), which limits cigarette manufacturers to one brand-name sponsorship each year.

Under the terms of the MSA, signed Nov. 23, 1998, by the major U.S. tobacco companies and 46 states and a number of U.S. territories, cigarette manufacturers were allowed to continue brand-name sponsorships under contract as of Aug. 1, 1998, for three years or until the contracts expired, whichever came first. At that time, Reynolds Tobacco sponsored NASCAR, the National Hot Rod Association (NHRA), and the Vantage Championship, a SENIOR PGA TOUR event.

To comply with the MSA, Reynolds Tobacco will relinquish its 27-year partnership with the National Hot Rod Association (NHRA) at the conclusion of the 2001 season. The company will announce a decision regarding the Vantage Championship, an event that has been held at Tanglewood Park near Winston-Salem, N.C., since 1987, in the near future. RJRT could continue its involvement with the SENIOR TOUR event as a corporate-name sponsorship in accordance with a MSA provision that allows non-branded sponsorships by cigarette manufacturers.

"The Winston brand has served as title sponsor of the NHRA's premier drag racing division, the NHRA Winston Drag Racing Series, since 1975," said Rick Sanders, president of RJRT's Sports Marketing Enterprises. "The decision to forgo this partnership has been a very difficult one for Reynolds Tobacco and the Winston brand. Both NASCAR and NHRA deliver an excellent product to fans, are experiencing tremendous growth and have promising futures. In the final analysis, however, we had to choose a single sponsorship and felt that the NASCAR sponsorship had the edge in supporting Winston's overall business objectives over time."

Winston's sponsorship of the Team Winston Top Fuel dragster, driven by Gary Scelzi, and the Team Winston Pro Stock motorcycle, driven by Angelle Savoie, in the NHRA Winston Drag Racing Series will also end at the conclusion of the 2001 season in compliance with the provisions of the MSA.

"We will continue to work closely with NHRA President Tom Compton, the NHRA staff and Team Winston to ensure an orderly sponsorship transition and a solid future for the drag racing series," Sanders said.

Text provided by Marie Mason

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