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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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Watch NASCAR Cup Awards Show at 8 p.m. ET on NBCSN

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Get settled into your favorite easy chair, make sure you have plenty of snacks and beverages on hand and get ready for the last big event of 2019 on the NASCAR schedule: tonight’s NASCAR Awards Show.

The show will be broadcast on NBCSN from 8-10:30 p.m. ET from Nashville, Tennessee, for the first time. And if you miss some of the show, don’t worry, there’ll be a replay immediately afterward, also on NBCSN.

Kyle Busch will be the main attraction for tonight’s show, being celebrated for winning his second NASCAR Cup championship this past season.

Also, the 2019 NASCAR Cup Most Popular Driver award winner will be revealed. Will it be defending winner Chase Elliott, reigning champion Kyle Busch, Ryan Blaney, Martin Truex Jr., Matt DiBenedetto … or someone else? You definitely need to tune in to find out.

And to get you in the mood, we’ll replay Wednesday’s Burnouts on Broadway at 7 p.m. ET, also on NBCSN.

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Will Daniel Suarez race for Richard Childress Racing in 2020?

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NASHVILLE, Tenn. — The president of Richard Childress Racing said it is a “longshot” that Daniel Suarez will drive a third Cup entry for the organization in 2020 but said RCR would like to have Suarez drive its No. 2 Xfinity car next year.

Suarez has not decided where he’ll race in 2020 after losing his ride with Stewart-Haas Racing this year.

Suarez has been linked with RCR. A third Cup entry would require RCR to acquire another charter for that car. It also could mean that the organization would need to hire additional people if they expanded to three full-time cars.

“I think that would be a long shot in a Cup program,” Torrey Galida told NBC Sports about Suarez in a third RCR Cup entry. “We’ve talked to him about an Xfinity program. We’d love to have him in an Xfinity car, and we think we could win another championship next year with Daniel. He’s a very talented young man.”

Richard Childress Racing’s No. 21 Xfinity car will run the full season with multiple drivers in 2020. Myatt Snider and Anthony Alfredo have been announced to drive that car. Galida said the team is looking at Kaz Grala, Austin Dillon and possibly two-time series champ Tyler Reddick driving that car in select races.

RCR ran the No. 21 car in nine of 33 Xfinity races this past season. It ran the No. 2 car in every race.

If Suarez, the 2016 Xfinity champion, drove for RCR in the Xfinity Series next year, it would be with the organization’s No. 2 car.

“We could still do that and we would do that,” Galida said of a full-time Xfinity effort for Suarez. “That’s the kind of opportunity we would be interested in.”

Galida said it just is a matter of hearing what Suarez decides.

“I think he knows what we’ve got to offer, and I think he’s just weighing his alternatives and trying to determine what is best for him,” Galida told NBC Sports. “I’m sure that going back to the Xfinity Series is not his first choice. I think in the right equipment it could be a really good move for him.”

Galida said they could go into January before hearing from Suarez but noted that “the sooner the better. People are your biggest issue. You want to put the right people around him.”

Next April’s Xfinity race at Bristol to have new sponsor

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Bristol Motor Speedway announced Thursday that partner Alsco, along with Darden Restaurants and its Cheddar’s Scratch Kitchen brand, will sponsor next April’s Xfinity Series race there.

The Cheddar’s 300 presented by Alsco will take place on Saturday, April 4, 2020.

Alsco is a global leader in uniform and linen rental services. In addition to its entitlement at Bristol Motor Speedway, Alsco will take part in Xfinity Series entitlements at three other Speedway Motorsports Inc. racetracks: Kentucky Speedway, Charlotte Motor Speedway and Las Vegas Motor Speedway.

Alsco’s initial entitlement at BMS came this past April with the Alsco 300 Xfinity Series race, won by Christopher Bell, who earned a $100,000 bonus through Xfinity’s Dash 4 Cash program.

Alsco is also a sponsor for Richard Childress Racing, Richard Petty Motorsports and JR Motorsports.

“Bristol is the place for historic finishes and close, hard-knock racing action,” said Jerry Caldwell, executive vice president and general manager at Bristol Motor Speedway. “Alsco and our new friends at Cheddar’s Scratch Kitchen understand the reputation of racing at The Last Great Colosseum and we’re ready to show them an incredible experience. The Cheddar’s 300 presented by Alsco is a must-see event on the NASCAR Xfinity Series schedule.”

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Cup champion’s celebration painful to those who didn’t win title

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NASHVILLE, Tenn. — A year after being feted for his first NASCAR Cup title, Joey Logano returned to Champion’s Week with a different feeling.

“These banquets aren’t really the same after you’ve won it and you know what it’s like to see your car plastered everywhere and your team and everyone is having fun together,” Logano said. “Don’t get me wrong, I’m glad we’re in Nashville, there’s a lot of really cool things, but it really stinks for the competitor to come to the banquet because it’s just like another reminder that you got beat. That’s not much fun. I don’t really like that part.

“When you leave the banquet that night, you really wish you could race the next day because that’s about the most motivating thing you could do is go to a banquet that you didn’t win because all you want to do is change that. And you want to do it as quickly as possible but you’ve got to wait until Daytona to get going again.”

The sport celebrates Kyle Busch’s championship at 8 p.m. ET today on NBCSN. This marks the first year the NASCAR Awards Show has been in Nashville. Busch was a part of the WWE event in the city on Monday, was honored by the Nashville Predators before Tuesday’s NHL game and took part in the Burnouts on Broadway on Wednesday with many other playoff drivers.

While Busch basks in the celebration, teammate Martin Truex Jr. deals with the pain of finishing second in the championship for a second consecutive year. Logano passed Truex late to win last year’s championship. Truex’s title run this season was derailed, in part, by his crew putting the wrong tires on the wrong side of the car in last month’s championship race in Miami.

Had things gone a little differently, Truex could have won three consecutive championships, matching Cale Yarborough’s accomplishment from 1976-78.

“I’ll tell you when I get over it,” Truex said of the pain of finishing second again for the title. “It’s a  big deal. Work all year long to put yourself in that position. When it doesn’t turn out the way you hope, it’s tough.

“A lot of people put a lot of effort into it. It’s not something that goes away. It takes time. Honestly, I’m still sour about finishing second last year, too. Two years in a row finishing second hurts. you have to learn from it and move on, but you never forget it.”