Jan 14, 2011 at 02:46 PM
This Is What $6.3 Mil Will Get You In NASCAR
Lawsuit of the day: Advanced Fluid Solutions vs. NASCAR. In brief, NASCAR says AFS never made the first $500K payment on a seven year, $6.295 sponsorship agreement, therefore according to the agreed terms the deal was terminated. AFS contends that NASCAR did not give prior written notice and says the deal should be re-instated.
Advanced Fluids had to use NASCAR logos in all stock-car or stock-truck promotions and advertising of the product.
From the lawsuit, here's a sampling of what was included in the AFS/NASCAR deal (a more comprehensive list of benefits can be found here.
If Advanced Fluids put the NASCAR logo on any unapproved products, it would owe NASCAR $1,000 for each item and/or would have to destroy the items.
NASCAR could terminate the deal if the quality of the product changed and did not meet NASCAR standards. Advanced Fluids would get 15 days to remedy the situation.
Payments were to be made quarterly, and any payment delinquent for more than 30 days would result in termination of the deal or include an additional charge of 1.5 percent interest per month on the unpaid balance. If the deal was terminated, Advanced Fluids could distribute remaining inventory with the NASCAR logos for 60 days.
You can read more about the case over at scenedaily.com.