President Clinton on Friday announced "far-reaching"
restrictions on tobacco advertising and sales, according to the
WASHINGTON POST. The new rules "wipe out such staples" of
tobacco marketing as free samples, colorful billboards and
cigarette brand advertising at sports events" (Barr & Hamilton,
WASHINGTON POST, 8/24). Industry leaders say the efforts by the
FDA to limit tobacco ads at sports events could have "devastating
implications" for auto racing, and NASCAR "in particular,"
according to Perrone & Barr in the WASHINGTON POST. NASCAR gets
millions of dollars a year from the R.J. Reynolds tobacco
company, maker of Winston, Camel, and other cigarette brands.
Winston is the primary sponsor for NASCAR's 31-race series, backs
two races and one team, and has ad contracts at all 18 NASCAR
tracks. Bristol Motor Speedway GM Jeff Byrd estimates RJR spends
$30M a year on NASCAR. RJR Spokesperson Nat Walker said it is
unlikely that parent Nabisco would assume the sponsorship if the
government prevails. Although a loss of the RJR sponsorship
would be strongly felt, some within the sport said NASCAR can
survive. On the Indy-car circuit, Phillip Morris' Marlboro
sponsors teams, two races, finances a pole-position series paying
drivers nearly $1M per year, and produces the Marlboro Racing
News (WASHINGTON POST, 8/24).
ACTION OR RE-ACTION: In Dallas, Richard Alm notes although
cigarettes, beer and auto parts are still "big names" on the
racing circuit, NASCAR's sponsors have diversified toward
consumer products like Tide, Burger King and the Family Channel.
Last week NASCAR announced the opening of a New York office to
attract a wider variety of corporate involvement (DALLAS MORNING
NEWS, 8/25).
FROM THE HOME OFFICE: NASCAR said in a statement: "We
haven't seen the final regulations. The announcement today was
not clear on details. It appears to us that lawsuits filed last
year by various advertising and tobacco interests will now move
forward. With litigation, it is entirely possible that the
courts may stay implementation of regulations, pending judicial
review. It looks like it is now in the hands of the courts"
(NASCAR). The American Motorsports Public Affairs Council Inc.,
a national non-profit representing political interests of the
motorsports industry, announced its opposition to the FDA
regulations and plans a grassroots program to build support for
federal legislation that would exempt motorsports industry
(AMPAC).
