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AT&T Wins Again….Thanks to NASCAR and Nextel!
By Sharon Burton
for JeffBurtonWorld.com
The more NASCAR and Nextel fight the issue…the more they lose and could lose long term! Their actions could produce the exact opposite of what they think they are trying to accomplish. As a fan, it makes one wonder just how much NASCAR is looking out for the best interests of their sport. Are they really acting on behalf of their fans, owners, drivers and every person employed within the NASCAR industry? Recent actions taken by NASCAR certainly appear to contradict their purpose of promoting the growth of racing.
Looking at the latest lawsuit filed by NASCAR against AT&T, the strong language and threats used by NASCAR seem quite intimidating. Their suit makes it imminently clear that NASCAR wants AT&T to play by their rules or they will not be invited to play with NASCAR any more. Reading the wording in the suit, it sounds almost akin to a spoiled child…or the bully at the playground. What’s more, to threaten existing sponsors of your sport somehow seems a bit irrational. Does this sport have so many big money sponsors in the wings they can afford to threaten their existing sponsors? Are NASCAR threats to sponsors really in the best interest of owners, drivers or fans? The answer is simple….No.
However, as one reviews this series of events, you realize that NASCAR is making a valiant effort to save face (and possibly avoid another nasty lawsuit) with their premier cup series sponsor, Nextel. Nextel made a very high priced agreement with NASCAR for exclusivity sponsorship for the cup series. However, it appears that NASCAR failed to protect Nextel’s exclusivity in the vague wording used in their Team Agreements. This became apparent when AT&T filed an injunction and legally won rights to place their logos on the #31 car driven by RCR driver Jeff Burton.
This is truly a “no win” situation for NASCAR and Nextel. Since the announcement of the NASCAR suit against AT&T, many fans once again perceive NASCAR as flexing their control over their owners and drivers in a manner that potentially limits their ability to negotiate for needed sponsorship dollars. The residual fallout finds many fans questioning Nextel’s need to have exclusivity in a sport where many like competitors have successfully marketed their brand side by side. Within NASCAR, we have UPS and FedEx, Miller and Budweiser, Lowes and Home Depot, Coca Cola and Pepsi just to name a few. They all seem to have the ability to play nice as competitors in the same sport. The reality is that they all reap the rewards of fan loyalty in spite of their competitor’s presence.
Additionally, whether NASCAR or Nextel will ever admit it, many fans are choosing to stop spending their hard-earned money on NASCAR merchandise, attending races and/or discontinuing their Nextel/Sprint service. In fact, many fans wonder if NASCAR and Nextel truly believe that fans will choose their cellular service simply because Nextel has exclusive rights in NASCAR. Both organizations need to wake up and smell the proverbial coffee.
NASCAR, you are losing your fan base…both new and old with your insistence to exercise your control and refusal to see the big picture consequences of your actions. Your fan base is not in the realm of stupidity. Frankly, it is becoming tiresome continually overlooking the perception you create that what the fans think and feel are of no concern to you. We are much smarter than you give us credit, leaving us to wonder about your intelligence.
Nextel, exclusive rights will not keep your customer base from eroding. However, your persistence at keeping your competitors out of OUR sport will continue to lose more customers than you will ever admit….and keep potential customers from even considering your service. Many fans have commented they are discontinuing or would never consider using Nextel service as a direct result of this issue. Many, further state, their service was not very good anyway. Is this type of publicity healthy for your organization? Perhaps, re-directing your energy toward offering reliable connections with excellent customer service would serve you well. One has to wonder if your customer loss is AT&T’s opportunity.
Yes, it certainly does appear that AT&T is the clear winner whenever NASCAR or Nextel makes use of intimidation, harsh reprimands and threats. There are some basic lessons here, we teach our children as toddlers. Most children learn very young and understand that life is much more rewarding when we share and that no one likes a bully! Furthermore, people (fans and customers) tend to gravitate to those who use their intelligence and have the ability to listen more and talk less. AT&T certainly appears to have the extra points for intelligence right now. They found the loophole you created and perhaps getting the customers you are now losing. Mmmmm…can you smell the coffee? This is your wake up call!
Note: The views expressed are solely those of the author and does not reflect the opinions of JeffBurtonWorld.com
Posted By: Dan Villeneuve
Date Posted: 6/19/2007
Number of Views: 5484
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