Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 22, 1994 TAG: 9412220085
SECTION: SPORTS PAGE: B-1 EDITION: METRO
SOURCE: BOB ZELLER STAFF WRITER
DATELINE: LENGTH: Medium
The stage has been set in South Boston for a David-and-Goliath legal battle over cigarette sponsorship in NASCAR stock-car racing between tobacco giant R.J. Reynolds and tiny Bailey's cigarettes, a micro-manufacturer that distributes only in south central Virginia.
When Bailey's came to race at South Boston Speedway in the Sept. 18 Winston Select 300 - its logos plastered all over the Late Model Stock Car driven by short track ace Wayne Patterson of Chesterfield - RJR and NASCAR officials allegedly told car owner Steve James that the Bailey's decals had to go, or James could go home.
So James removed or covered the offending decals, and Patterson went on to win the 300-lap race, one of the top late model races in the area.
The response from Bailey's cigarettes, however, was to file a suit on Nov. 28 in Halifax County Circuit Court in South Boston, asking for $100,000 in punitive damages and an injunction against RJR and NASCAR prohibiting them from interfering with Bailey's sponsorship of stock cars.
The suit argues that RJR has no reason to keep Bailey's out of the sport ``other than to continue its monopoly on racing and its large cigarette monopoly.''
But RJR believes that the exclusive sponsorship agreement it has with NASCAR protects its multi-million dollar investment in the sport.
Bailey's cigarettes have been around only since August. They are the cigarette industry's equivalent of a microbrewed beer.
The brand was created by Malcolm L. and Steven A. Bailey, a father and son from Keysville, who are tobacco farmers and processors. So far, distribution is limited to south central Virginia.
In September, the Baileys decided to advertise their product by sponsoring a local Late Model Stock Car. ``We just wanted some kind of advertising and we thought racing was a good place to do it,'' Steven Bailey said.
The Bailey's logo first appeared on the car at a Saturday night race at South Boston, which Patterson won. Bailey's again rode with the car at another Saturday night race at Orange County Speedway.
But when James arrived at the big 300-lapper at South Boston on Sept. 18, an RJR official believed to be Winston Racing Series manager Dan Henley told James his car would not be allowed to participate with the Bailey's logos, the suit alleges.
Later, the suit alleges, NASCAR official Jerry Cook told James that he could never display Bailey's advertising at any NASCAR-sanctioned race.
James, who had removed or covered the decals at South Boston before Patterson drove the car to victory, is not involved in the lawsuit.
``I can't sue a man when I'm playing in his yard,'' James said.
But the Baileys believe they have a right to advertise in NASCAR racing.
``How can one company command such a large sport?'' Steven Bailey said. ``We just don't think that's right. You see the Budweiser and Miller cars running together. You see the Skoal Bandit car out on the race track. There's lots of instances where you see sponsors racing against each other.
``We don't want to cause any problems for R.J. Reynolds, but they kinda took the first swing,'' he said.
Nat Walker, spokesman for RJR's Sports Marketing Enterprises, said: ``Our arrangement with NASCAR is an exclusivity arrangement with cigarette sponsorship. We do spend a great deal of money in motorsports and if we don't protect that exclusivity in those sports ... it's of no value.''
Keywords:
AUTO RACING
by CNB