NHRA President Glen Cromwell Announces Lawsuit Against The Coca-Cola Company (1 Viewer)

[ironpony]

IMO it is not what NHRA has done or not done the interest in drag racing, cars in general is not there anymore.
Look around at who is attending these events, who is at cruise nights, who is talking about cars.
Us old and older guys not many young ones to fill our shoes.
NHRA's fault ? not really, could NHRA of done things differently ? maybe.
The people base of interest is not there anymore.
Not to mention the cost of even going 10.00's and trying to have fun only.
Then if you are a car guy hopefully you have a local track within 2 hours drive, get there spend all day and make a couple of passes, not the way the younger crowd wants to spend their time.
I live 1 mile from National Trails and listen to the cars go down the track every Wed., Fri. and all weekend most weekends. IMO their days are numbered, why? they are building 500k home north of the track and getting closer everyday. Those people will not want to listen to the cars 3-4 days a week and they are a lot closer to the track than me.

 

[DanTheFan]

Indeed many of us old guys miss parts of the old days. After going to school and developing a career, I thought it was pretty cool that I could afford to travel around to the National meets and see the cars I only saw one a year for a specialty race or exhibition. And it is. Always thought they should have a promotion for teens, dirt cheap entry. But when I look at those old pics now, I miss the diversity. Staging lanes jammed with altereds, gassers from Willys and Anglias, fiats with blown motors, super stockers from the major brands. Throw in some nitro cars and it was quite a day. I’d go to see that today with fewer nitro cars but like many, can’t watch the .90 stuff. Sorry, that’s just me. I go eat when the bikes and pro stockers roll up, but hurry to my seat when the exhibition gassers show up. Oh and loved the old pro mods with wild body styles, 34’s, 57 chevs, etc. I know, they roll over.

 

[mick]

many of today's youth know and love classic rock from the 60's and 70's as it is still rammed down our throats via radio and satellite.
the same can not be said about car culture.......when us older folk were young, we had every 'car' model, toy, radio controlled, hot wheels, posters, shirts, big wheel, bicycle,
now the kids need to be lucky enough to have folks, relatives, or close friends that can show them the ways; social media controls today's youth, and will only control them more
as they become adults. the elite data collectors will make sure car culture is not part of the future.

 

[Jim]

I still think there's a way to get younger folks engaged with drag racing BTW: I'm not sure of a full-proof key).
Mentioned it before - Cletus McFarland has 2,2 Million subscribers and -typically has 1/2 million views of his YouTube videos within a couple hours of uploading them. KIds stiill want to have fun with cars.

 

[r2]

AA/MH too the lanes.

Marcus Lemonis (@marcuslemonis) on Twitter

 

[ironpony]

I still think there's a way to get younger folks engaged with drag racing BTW: I'm not sure of a full-proof key).
Mentioned it before - Cletus McFarland has 2,2 Million subscribers and -typically has 1/2 million views of his YouTube videos within a couple hours of uploading them. KIds stiill want to have fun with cars.

serious question, how do you know there are "kids" watching them ? is there a way to tell.

 

[Nick Name]

Younger folks are into drag racing, just not NHRA style. The XDA motorcycle drag racing series has 897 entries at their event two weeks ago. Most of them young people. The door car scene, fueled by Street Outlaws is where the younger people are are getting their drag racing fix. The big show deal priced nitro racing out of peoples budgets. Yes I remember when three guys with decent jobs could run a fuel car at Lions out of pocket. That is gone forever and has been replaced.

 

[stitcherbob]

Increased safety +
less drag racing heros dying is always a plus. Way too many slingshot drivers left us too soon. Imagine if that happened today?

Increased safety -
taking away some of the danger has dulled the sport. Drivers were daredevils cheating death. Even Shirley. Could John force's daughters have competed back in 1972-3?

Increased costs +
better equipment and no junk allowed, like "muffler moly" chassis pipe

Increased costs -
kids today can't get involved to the levels they used to in our sport. Wally's original plan to get them off the streets is backfiring....even a national cable tv show thumbs it's nose at the NHRA

Increased rules +
creating classes and policing infractions allowed racing to grow

Increased rules -
the search for parity destroyed innovation.

 

[Dragracer]

Lets go back to the original reason for this post. NHRA now, like effective immediately, has a new series sponsor. What happens to the lawsuit. Coca Cola paid $2.860 million to NHRA on 11/16/2019 for the first half of the 2020 season - which most of it didn't happen.
NHRA certainly has the option to continue the lawsuit, at great expense, or drop it. Who knows if Coca Cola is willing to negotiate a settlement. I have worked for Billion dollar corporations that have spent more on court costs when the suit against them was for much less. With Camping World immediately taking over the sponsorship I think NHRA has much less of a chance of getting anywhere close to amount they are asking for in the lawsuit, IF THEY WERE TO WIN. Under these circumstances with Camping World replacing Coca Cola immediately NHRA has less bargaining power in the lawsuit. If it goes to court I doubt NHRA would be able to cover their court costs even if they were to win and if they lost they would have to pay Coca Coca and that could cost NHRA a whole bunch of money.
As far as Coca Cola being worried about market share because of this - NOT. They control 43.7% of the soft drink market world wide. Loss of NHRA fans is so small it probably doesn't even show up on their books.

 

[Tony]

Lets go back to the original reason for this post. NHRA now, like effective immediately, has a new series sponsor. What happens to the lawsuit. Coca Cola paid $2.860 million to NHRA on 11/16/2019 for the first half of the 2020 season - which most of it didn't happen.
NHRA certainly has the option to continue the lawsuit, at great expense, or drop it. Who knows if Coca Cola is willing to negotiate a settlement. I have worked for Billion dollar corporations that have spent more on court costs when the suit against them was for much less. With Camping World immediately taking over the sponsorship I think NHRA has much less of a chance of getting anywhere close to amount they are asking for in the lawsuit, IF THEY WERE TO WIN. Under these circumstances with Camping World replacing Coca Cola immediately NHRA has less bargaining power in the lawsuit. If it goes to court I doubt NHRA would be able to cover their court costs even if they were to win and if they lost they would have to pay Coca Coca and that could cost NHRA a whole bunch of money.
As far as Coca Cola being worried about market share because of this - NOT. They control 43.7% of the soft drink market world wide. Loss of NHRA fans is so small it probably doesn't even show up on their books.

The NHRA has always been an after-thought to Coca Cola, I strongly believe this will change with Camping World. Marcus L can see the benefit of personal fan exposure that no other motorsport can offer except the NHRA.
As far as Coca Cola being worried about market share because of this - NOT. They control 43.7% of the soft drink market world wide. Loss of NHRA fans is so small it probably doesn't even show up on their books.

 

[stitcherbob]

National Hot Rod Association v. The Coca Cola Company, Docket No. 2:20-cv-08614 (C.D. Cal. Sep 21, 2020), Court Docket

www.bloomberglaw.com

 

[Cliff]

WOW.... there is kind of a good arguement on both sides, if I'm reading this right. I would think that Coke talked w/ their lawyers about this. Maybe they thought they could bully NHRA?? Also have the feeling that NHRA bent over backwards to appease Coke. Will be really interested in what happens with this case, which could drag out for a loooong time.

Bob you need to be an investigative reporter.

 

[Pete]

I believe someone mentioned this earlier in the thread, but again, if there is a "force majeure" clause in the contract, Coke only has to prove that the pandemic caused an extraordinary event, not allowing both sides to fulfill the contract.

Force majeure - Wikipedia

en.wikipedia.org

 

[Cliff]

Hmmm, maybe both side could make a deal? Coke pays NHRA the with held payment and the contract terminates. Still don't like Coke doing it this way.

 

[Jim]

Seems to me, NHRA can make an argument that the early termination not only harmed them in so far as current payments not having been paid but, they should have a claim to - at least some portion - of future payment due because Coke did not give them reasonable notice of cancellation and they were foreclosed from doing a full sponsorship promotion.

Camping World may turn out to be a terrific (and sensible) marketing partner but advance notice would - no doubt - brought more suitors and (conceivably) a better deal. Given the worst possible timing (for NHRA), I'm sure Camping World didn't overpay for the privilege.

Hmmm, maybe both side could make a deal? Coke pays NHRA the with held payment and the contract terminates. Still don't like Coke doing it this way.

 

[SundayNiagara]

Seems to me, NHRA can make an argument that the early termination not only harmed them in so far as current payments not having been paid but, they should have a claim to - at least some portion - of future payment due because Coke did not give them reasonable notice of cancellation and they were foreclosed from doing a full sponsorship promotion.

Camping World may turn out to be a terrific (and sensible) marketing partner but advance notice would - no doubt - brought more suitors and (conceivably) a better deal. Given the worst possible timing (for NHRA), I'm sure Camping World didn't overpay for the privilege.

When they filed the lawsuit, NHRA laid their cards on the table for all to see, which may have hurt them in the long run. I'm still trying to find out the terms with Camping World.

 

[Dennis]

When they filed the lawsuit, NHRA laid their cards on the table for all to see, which may have hurt them in the long run. I'm still trying to find out the terms with Camping World.

I think the most surprising thing here is that Coca Cola wanted "out" way before COVID. Even to the point of saying "Yeah go ahead and start your sponsor hunt and if they want to start before our contract ends we're cool with that".

 

[Nunz]

Well here's another thought: I think NHRA can bring a huge amount of value to Camping World as a sponsor, whereas I don't think NHRA could have ever done enough to move the needle on Mello Yello sales, I mean I don't even think I see it in any stores where I live. So what I'm saying is, Marcus probably recognizes he could do an awful lot over here, no matter what CC's experience has been. In his interview he mentioned the importance of being able to "activate" his sponsorship with NHRA, which is a big part of any program being successful.

 

[Jim]

Except that NHRA made enormous efforts to "cure" the problem.
Coke might have been entitled to a pro-rata credit but, I think, they would be on thin ice in front of a jury.

In the letter Coke sent to NHRA they referenced the "force majeure" clause in the contract blaming it on the Pandemic. There have been other companies who have cancelled their contracts referencing that clause and blaming the Pandemic. The question is whether the Pandemic is covered under force majeure. The British courts have ruled it is.

 

[Dragracer]

Except that NHRA made enormous efforts to "cure" the problem.
Coke might have been entitled to a pro-rata credit but, I think, they would be on thin ice in front of a jury.

NHRA did not get the immediate injunction they were requesting. Who knows if NHRA is going to continue to pursue this or not and we probably will never know. It could be tied up in court for years. NHRA has a new sponsor. So whatever happens I don't really care. The Pro's will continue on with Camping World starting at the next race.