Marlboro Limited in Sporsoring Racing Team

Marlboro Limited in Sponsoring Auto Race Team

Violation of 1998 Tobacco Agreement Cited

Philadelphia, June 1, 2001 -- The commonplace look of multiple logos seen in auto racing might have hit a snag recently. Team Penske and Philip Morris have been told that Marlboro cannot sponsor teams in two racing series, in response to their desire to use Marlboro in the Indianapolis 500. According to the Miami Herald, the National Association of Attorneys General said that because Marlboro already sponsors the team in the CART FedEx Series, "it could not do so in a second" racing series. Long quotes team Penske and Philip Morris as saying that they "believed they were within the guidelines" of the '98 National Tobacco Settlement with the Marlboro brand's sponsorship of the CART team.

According to an Associated Press article, a spokesperson for the Pennsylvania Attorney General's office, said Philip Morris "has argued that CART gave permission for its teams to participate in IRL. While that may be true, there's different rules, different cars. We believe they are two separate events"

Penske wants to stay on the right side of the law. On RPM tonight on ESPN 2, Roger Penske was quoted as saying that "Certainly Philip Morris is supporting the Attorneys General's position, and obviously, as we look at our relationship with them, we didn't want anything to happen that would effect that. We agreed that the best thing to do would be to remove the logos and then be able to sit down with the Attorneys General after the race and determine what would be for the future."

In addition to removing Marlboro logos from the team's two cars, Penske "also agreed to remove the Marlboro name from uniforms" worn by drivers and crew members, as well as the equipment used in the pits. But a Philip Morris spokesperson said that the company "would maintain its financial support of Team Penske for the race, even though it won't benefit from the exposure"

This might turn out to be the beginning of major changes in the way companies are allowed to advertise. In the wake of tobacco settlement litigation, and increasing regulation of alcohol and tobacco advertising, the AP's writes the Penske cars were "hardly the only ones at the speedway sending out mixed messages. As questionable as it seems to allow ads linking driving with drinking.people will point out that those businesses aren't restricted from advertising the way cigarette makers are. To prove how confused and hypocritical the whole thing has become, consider that Brazil's best cigarette company, Hollywood, will be allowed to keep its logo on the race car of Felipe Giaffone, because it was not part of the U.S. tobacco settlement. That seems to make sense--keep smoking, as long as you smoke Brazilian cigarettes.

Sources:

Miami Herald, May 25, 2001
Associated Press- May 25, 2001
RPM Tonight- May 24, 2001

Matthew Roberts