Action Performance Signs Exclusive Agreement With John Force
10 April 2000
Action Performance Signs Exclusive Agreement With Nine-Time NHRA Funny Car Champ John Force
PHOENIX--April 10, 2000--Action Performance Companies Inc. demonstrated its ongoing strength and ability to develop strategic alliances with the most popular and prominent drivers in the motorsports industry.At a special press conference held at Las Vegas Motor Speedway on Friday, April 7, the company announced an exclusive, five-year strategic sponsorship, endorsement, licensing and Internet agreement with John Force Racing Inc. (JFRI).
John Force, driver of the Castrol GTX Ford Mustang, is one of the most prominent drivers in the history of drag racing, with nine National Hot Rod Association (NHRA) Funny Car championship titles. Force holds an impressive 82 Winston tour victories and is still at the top of his game, in a career that spans 22 years.
Under the terms of the agreement, Action Performance has the exclusive right to all John Force and JFRI trademarks, copyrights, images and likenesses. Action also has the exclusive right to seek third-party licensing agreements and personal endorsements to market Force and his team.
Action also obtains the right to appoint associate sponsors for the two existing JFRI Funny Car teams. The company's online subsidiary, goracing.com, will host and manage the Official JFRI Web site and the John Force Fan Club.
The agreement also holds additional significance for Action because it supports on-going strategic initiatives to leverage the company's marketing and merchandising expertise to support the growth of the NHRA.
By increasing the visibility of NHRA drag racing and strategically using Internet capabilities, such as Fantasy Sports online racing games, which are already in development, Force and other drivers will be more accessible to the fans than ever before.
"We are continuing to combine our strengths with strategic alliances, licenses with top drivers and the company's physical assets in order to maximize new business development beyond our core business categories with NASCAR to include the NHRA and other motorsports series across the board," said Fred W. Wagenhals, Action chairman, president and chief executive officer.
"John is an unparalleled champion and his dynamic personality has made him an enduring favorite with drag racing fans worldwide. We are proud to work with John and his team, and this partnership will ensure that his fans can continue to share in the excitement of his career.
Wagenhals added, "Additionally, this will be a win-win scenario that benefits other drag racers and the NHRA as a whole. It's very exciting to have all the pieces fit and work so well together."
"Action is a marketing powerhouse and the energy and excitement their special programs bring to the sport really adds something dynamic for fans to get excited about," said Force.
"The creativity behind their special theme cars and their ability to deliver quality merchandise really enhances drag racing as a spectator sport. I know that Action is always developing new ways to support my career as well as the future growth of the NHRA, and I am glad to have our long-standing relationship expand and continue for another five years."
Licensed products specified in the agreement include all of Action's products, including replica vehicles, collectibles, apparel and novelty items, as well as Hasbro Winner's Circle(R) products, including toy vehicles, play sets, puzzles, games, figurines and other novelties.
Action Performance Companies Inc. is the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs, and other memorabilia.
The company markets and distributes products through a variety of channels, including the Racing Collectibles Club of America (RCCA), online at goracing.com, trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.
This press release contains forward-looking statements. The company's actual results could differ materially from those set forth in the forward-looking statements.
Factors that might cause such a difference include, among others, competitive pressures, acceptance of the company's products and services in the marketplace, the company's ability to implement successfully its Internet strategy, the company's ability to integrate successfully acquired businesses, and other risks discussed in the company's Form 10-K for 1999, dated Sept. 30, 1999, which is on file with the U.S. Securities and Exchange Commission.