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Stewart-Haas Racing files suit against sponsor of Danica Patrick’s team

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Stewart-Haas Racing filed a breach of contract lawsuit against Nature’s Bakery, the sponsor of Danica Patrick‘s team, Friday in North Carolina Superior Court.

The Associated Press first reported the suit.

Stewart-Haas Racing seeks $31.7 million in actual damages, plus interest. Nature’s Bakery was to pay $30.4 million of base fees for the remaining two years of the contract, along with another $1 million in other fees.

Stewart-Haas Racing stated in the lawsuit that the actions of Nature’s Bakery “set SHR up for a devastating loss of revenue just before the beginning of the 2017 race season; and rendered it nearly impossible for SHR to have any reasonable hope of mitigating its damages.”

Stewart-Haas Racing issued a statement Friday night:

“Nature’s Bakery is in material breach of its contract with Stewart-Haas Racing. It is an unfortunate situation, as the team has delivered on all aspects of its contract and was prepared to do so again in 2017. Ultimately, this is a situation that will be resolved in a court of law.

“Stewart-Haas Racing remains focused on its preparation for the 2017 NASCAR season where it will again field four entries in the Monster Energy NASCAR Cup Series while also introducing a full-time NASCAR Xfinity Series team. The litigation with Nature’s Bakery will not impact the organization’s on-track efforts.”

Stewart-Haas Racing stated in the complaint that “this is an action to recover substantial damages from the Defendants’ unfair trade practices and associated intentional and bad faith breaches of a multi-year primary sponsorship agreement associated with the #10 SHR race team.”

Stewart-Haas Racing stated in the complaint that after Nature’s Bakery expressed interest in 2015 in sponsoring Patrick’s team, the organization “expressed significant concern that Nature’s Bakery would be unable to afford a primary sponsorship of the magnitude it requested. Mr. (David) Marson, for himself, and the Marsons, for the Marson Trust, and Nature’s Bakery, provided repeated assurances that Nature’s Bakery had the cash flow and funds to meet all financial requirements of the proposed sponsorship agreement.”

The suit states that for the 2016 season, Nature’s Bakery was to pay $15,212,000 to sponsor the team. It was to pay the team $5 million on or before Oct. 1, 2015; $3,404,000 on or before Feb. 1, 2016; $3,404,000 on or before May 1, 2016; and $3,404,000 on or before July 1, 2016.

For 2017, Nature’s Bakery was to pay $15,212,000 to sponsor the team with the same type of payment schedule.

For 2018, Nature’s Bakery was to pay $15,212,000 to sponsor the team with the same type of payment schedule.

The complaint states with the contract set, Stewart-Haas Racing moved forward on other matters, including signing Patrick to a multi-year agreement that goes through the 2018 season.

The complaint states that “soon after executing the Sponsorship Agreement, Mr. Marson and Joe Marshall (Nature’s Bakery Chief Financial Officer) reached out to SHR executives, and stated that Nature’s Bakery was having cash flow issues, and asked if the payment amounts and deadlines in the Sponsorship Agreement could be modified to assist Nature’s Bakery with its cash crunch.”

Stewart-Haas Racing changed the payment schedule for 2016 for Nature’s Bakery to pay $2.5 million on or before Oct. 1, 2015;  $1 million on or before the 15th of each month from January to May 2016; and $1.928 million on or before the 15th of each month from June to September.

For 2017, the payment schedule was adjusted to $2.5 million on or before Oct. 1, 2016; $2.5 million on or before Dec. 1, 2016; and $3.4 million on or before the first day of February, May and July 2017.

Among the many extra benefits Stewart-Haas Racing provided Nature’s Bakery, according to the lawsuit, were two additional races free in 2016 when both Patrick’s car and the No. 14 car of Tony Stewart had Nature’s Bakery as a primary sponsor at the Dover race in October. The team also stated in the lawsuit that Stewart-Haas Racing helped Nature’s Bakery avoid track fees for activation access and “upon learning of the mold outbreak in Defendants’ product, SHR worked to open and dispose of many samples of Nature’s Bakery products that contained heavy mold, to avoid fans from receiving tainted product (and the resulting reputational issues that would surely follow).”

Stewart-Haas Racing states that Nature’s Bakery reached out to the team in late summer 2016 to modify the base fee payment terms, “representing that modification was again necessary due to Nature’s Bakery’s internal cash flow issues.”

The payment schedule was again changed. Nature’s Bakery was to pay Stewart-Haas Racing $1 million on before the 15th of each month from January to March 2017 and $2,042,400 on or before the 15th of each month from April to August 2017 and $1 million on or before the 15th of September and October 2017. The 2018 payment schedule also was adjusted.

Stewart-Haas Racing accused Nature’s Bakery of concocting “a scheme to avoid further payments” by claiming that Patrick had endorsed competing products and did not use her social media presence enough to promote Nature’s Bakery. Stewart-Haas Racing states in the complaint that “these claims are false.”

Stewart-Haas Racing states that “the thrust of Nature’s Bakery’s complaints about Danica Patrick supposedly endorsing competing products is her personal endorsement of Six Star Pro Nutrition’s protein powder. Protein powder is not competitive with fig bars or brownies. Furthermore, Danica Patrick had been endorsing Six Star Pro Nutrition’s protein powder, publicly, for many months prior to the execution of (the) Sponsorship Agreement, and continued to do so afterwards.

“Never once did Defendants claim that her doing so amounted to a breach of the Sponsorship Agreement (nor could it, because, again, the protein powder is not a competing product).  … Danica Patrick never endorsed Six Star Pro Nutrition’s protein bars. Worse, Nature’s Bakery “liked” numerous of Danica Patrick’s Instagram posts regarding Six Star Pro Nutrition and other protein powders. Clearly, even Nature’s Bakery did not consider Danica Patrick to be endorsing a competing product, until it decided to drum up reasons to terminate the Agreement.”

The suit says Nature’s Bakery sent a letter to Stewart-Haas Racing on Jan. 19 seeking its desire to terminate the sponsorship agreement.

Stewart-Haas Racing stated in the lawsuit: “In every respect, SHR complied with its obligations under the Sponsorship Agreement.

“In every respect, Defendants materially breached their obligations under the Sponsorship Agreement, and did so using unfair, deceptive, manipulative and bad faith tactics.

“Left with no options to protect its rights and interests, SHR files this action seeking to recover all amounts due pursuant to the Sponsorship Agreement, plus interest, and all other damages.”

Nature’s Bakery served as the primary sponsor on Patrick’s car for 27 points races last year along with what was called the Sprint Unlimited and the Sprint All-Star Race. Nature’s Bakery was to have served as the primary sponsor of Patrick’s team for a minimum 25 races this season, according to the lawsuit.

Patrick appeared at last week’s NASCAR Media Tour in her TaxAct uniform instead of a Nature’s Bakery uniform, raising questions about the company’s primary sponsorship of her team.

The Nature’s Bakery website does not contain references to Patrick, Stewart-Haas Racing or NASCAR.

Messages to representatives of Nature’s Bakery about this matter have yet to be returned.

Click here to view the lawsuit

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Goodyear tire info for Talladega Superspeedway

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Goodyear will use the same tire setups this weekend in the Cup and Xfinity Series at Talladega Superspeedway.

While the left-side tire is unchanged from what’s been in use at the track since October 2014, the right-side tire will have a minor construction update.

“The amount of tire wear at Talladega has increased a good bit since the track was repaved back in 2010, and we especially see that on the inboard of the right-front (tire) where teams run a significant amount of camber” said Greg Stucker, Goodyear’s director of racing in a press release. “That led us to bring a more wear-resistant right-side tread compound starting in 2014. Having said that, we still see a lot of tire strategy come into play at Talladega, with teams still having the ability to take two tires or even fuel only depending on the situation.”

As on all NASCAR ovals greater than one mile in length, teams are required to run inner liners in all four tire positions at Talladega. Air pressure in those inner liners should be 12-25 psi greater than that of the outer tire.

Here’s the full tire info for the weekend.

Set limits: Cup: Two sets for practice, one set for qualifying and six sets for the race; Xfinity: four sets for the event

Tire Codes: Left-side — D-4596; Right-side — D-4752

Tire Circumference: Left-side — 2,233 mm (87.91 in.); Right-side — 2,247 mm (88.46 in.)

Minimum Recommended Inflation: Left Front — 27 psi; Left Rear – 27 psi; Right Front — 50 psi; Right Rear — 48 psi

Social Roundup: Reaction to Matt Kenseth’s NASCAR return

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He’s back!

Five months after making what was thought to likely be his last Cup start, Matt Kenseth was announced Wednesday as returning in a part-time capacity with Roush Fenway Racing.

Here’s how social media reacted to the news that the 2003 Cup champion will share the No. 6 Ford with Trevor Bayne for the rest of the season.

Check back for more.

Matt Kenseth to drive No. 6 for Roush Fenway Racing

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CHARLOTTE, N.C. — Matt Kenseth is returning to NASCAR and coming back to his racing home.

Roush Fenway Racing announced Wednesday at the NASCAR Hall of Fame that the 46-year-old Kenseth will drive the No. 6 Ford for Roush Fenway Racing in select races. His first race with the team will be Kansas on May 12.

“It feels like the right deal at the right time,’’ Kenseth said. “I think it’s an interesting challenge for me not just being a driver. I hope I can be much more to the organization. I hope there is a lot of different ways I can help in.’’

Said car owner Jack Roush: “We feel he has come home to us.’’

Kenseth will share the No. 6 ride with Trevor Bayne, who is running this weekend at Talladega.

“Our goal is to have Trevor continue to grow and mature on the track,’’ said Steve Newmark, president of Roush Fenway Racing. “He will continue to be in the car.’’

Newmark said details are being worked out on what races Bayne and Kenseth will drive. Bayne has close ties to sponsor AdvoCare, which is on the car at Talladega. Kenseth will drive in the All-Star Race, Newmark confirmed.

Newmark said that when he told Bayne of the decision, Bayne said he wanted to remain in the car every week.

He’s a fierce competitor,“ Newmark said of Bayne’s reaction to being taken out of the car for some races. 

Roush said he hopes Kenseth can help the organization improve its performance.

“It’s a chance to look at our cars and see if there is something glaring that Matt sees with his experience,’’ Roush said.

Bayne is 26th in the points. The 2011 Daytona 500 winner has not finished better than 12th (Texas) this season. Every driver ahead of him in the points has had at least one top-10 finish this season. He has not finished in the top 10 in his last 12 starts, dating back to last season.

Kenseth said he had not talked to Bayne but hopes to do so in a few days and work together. Kenseth said he spoke to Stenhouse before the announcement.

Kenseth, the 2003 Cup champion, has 39 career Cup wins, putting him 20th on the all-time wins list.

Car owner Jack Roush said that Kenseth will be a good mentor for the team’s young drivers, along with Ricky Stenhouse Jr. and Trevor Bayne.

He won the 2000 Cup Rookie of the Year award driving for Roush Fenway Racing and remained with the organization through the 2012 season. Kenseth won 24 races — including the 2009 and 2012 Daytona 500 — with the team before leaving to drive for Joe Gibbs Racing from 2013-17.

Roush Fenway Racing also announced that Wyndham Rewards/Wyndham Hotels will sponsor the No. 6 car in select races.

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NASCAR America: Matt DiBenedetto holds head high after 16th at Richmond

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Matt DiBenedetto joined Kyle Petty and Marty Snider at the Big Oak Table in NASCAR America’s Charlotte studio and relived his 16th-place finish in the Toyota Owners 400 at Richmond Raceway.

“When we run 16th – with no attrition; we just flat out-raced Hendrick cars … RCR cars and Penske cars, the list goes on and on – we do that, we can hold our head high,” DiBenedetto said.

DiBenedetto was one of 23 drivers who finished on the lead lap last week, which meant he had to beat some big budget teams.

“If we’re going by budget and pure numbers, we stack up 32nd, -3rd, -4th,” DiBenedetto. “But we have really good people. We may not have a lot of people, but we have some really good people.

“We had a nice, smooth weekend and outraced a lot of people that in theory, if you’re going by budget, we definitely shouldn’t. It makes us proud because it makes other people, probably a little mad, as they see the 32 car going by, knowing that we run on a sixth of the budget of the guys we were driving by.”

DiBenedetto’s last three races have ended in finishes of 16th at Texas Motor Speedway, 21st at Bristol Motor Speedway and 16th at Richmond.

For more on DiBenedetto’s strong Richmond finish, watch the above video.