Mini
02-06-2003, 11:17 AM
WINSTON-SALEM, N.C. -- The Winston Cup in the NASCAR Winston Cup Series may be gone after 2003.
The R.J. Reynolds Tobacco Company said it has talked with NASCAR about the possibility of the sanctioning body finding another company to become the title sponsor of stock-car racing's top division.
Last July, RJR signed a five-year agreement to continue as the backer of the Winston Cup Series. But times have changed, said Ned Leary, president of Sports Marketing Enterprises, the arm of RJR that handles NASCAR sponsorship.
"Since that time, our business dynamics have changed dramatically," Leary said. "In our ongoing conversations with NASCAR, we have discussed the potential of their exploring a new series sponsor at some time in the future."
The news is a bombshell in the NASCAR world.
RJR has been the title sponsor since 1971, when the company came into the sport as manufacturers were leaving. Many have considered Winston to be a saving grace to NASCAR, establishing a points fund and pumping millions of dollars into the sport.
Winston Cup has become synonymous with NASCAR in the years since. Last week, Winston announced an increase in its season-ending points fund to $17 million, with the Winston Cup champion getting $4.25 million.
But on Jan. 6, perhaps a sign of things to come, RJR announced it was discontinuing the No Bull 5 program that could have handed out a $1 million bonus to a driver and fan at one of five selected races.
R.J. Reynolds Tobacco Holdings Inc., the parent company of RJR, announced last week losses in the fourth quarter of 2002. The company lost $59 million in the final three months, as opposed to an $89 million profit in the same span of 2001.
The company blamed increased spending on promotions on the losses, saying it needed to spend more to compete with other tobacco companies both large and small.
The company also had a $224 million restructuring charge for the elimination of 635 jobs and the proposed sale of two businesses, according to the Winston-Salem Journal.
RJR also had a loss in the first quarter of 2002, and profits for the entire year were down compared to 2001.
Reynolds Holdings stock was down .49 to 41.65 Wednesday, a decline of 1.16 percent.
Leary set no timetable for when Winston could leave the sport.
"We have always worked with NASCAR and others to do what was in the best interest of this great sport," Leary said. "As the series sponsor, we will continue our work to grow this sport."
Last week, NASCAR lost another long-time sponsor when ConocoPhillips, owner of the 76 gasoline brand, announced it would not return next year as the official provider of fuel.
The R.J. Reynolds Tobacco Company said it has talked with NASCAR about the possibility of the sanctioning body finding another company to become the title sponsor of stock-car racing's top division.
Last July, RJR signed a five-year agreement to continue as the backer of the Winston Cup Series. But times have changed, said Ned Leary, president of Sports Marketing Enterprises, the arm of RJR that handles NASCAR sponsorship.
"Since that time, our business dynamics have changed dramatically," Leary said. "In our ongoing conversations with NASCAR, we have discussed the potential of their exploring a new series sponsor at some time in the future."
The news is a bombshell in the NASCAR world.
RJR has been the title sponsor since 1971, when the company came into the sport as manufacturers were leaving. Many have considered Winston to be a saving grace to NASCAR, establishing a points fund and pumping millions of dollars into the sport.
Winston Cup has become synonymous with NASCAR in the years since. Last week, Winston announced an increase in its season-ending points fund to $17 million, with the Winston Cup champion getting $4.25 million.
But on Jan. 6, perhaps a sign of things to come, RJR announced it was discontinuing the No Bull 5 program that could have handed out a $1 million bonus to a driver and fan at one of five selected races.
R.J. Reynolds Tobacco Holdings Inc., the parent company of RJR, announced last week losses in the fourth quarter of 2002. The company lost $59 million in the final three months, as opposed to an $89 million profit in the same span of 2001.
The company blamed increased spending on promotions on the losses, saying it needed to spend more to compete with other tobacco companies both large and small.
The company also had a $224 million restructuring charge for the elimination of 635 jobs and the proposed sale of two businesses, according to the Winston-Salem Journal.
RJR also had a loss in the first quarter of 2002, and profits for the entire year were down compared to 2001.
Reynolds Holdings stock was down .49 to 41.65 Wednesday, a decline of 1.16 percent.
Leary set no timetable for when Winston could leave the sport.
"We have always worked with NASCAR and others to do what was in the best interest of this great sport," Leary said. "As the series sponsor, we will continue our work to grow this sport."
Last week, NASCAR lost another long-time sponsor when ConocoPhillips, owner of the 76 gasoline brand, announced it would not return next year as the official provider of fuel.