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April 08, 2008
Bill Davis Racing Sues 360OTC
Bill Davis Racing has filed suit against Rockford-Montgomery Lab, the maker of 360OTC, because they've only paid $25,000 of the $14 million they were supposed to as part of the sponsorship deal for the #36 car last season. In addition, apparently RML never paid any of the $3 million they owed for sponsoring the #36 truck or the $1 million owed for a partial sponsorship of the #23 truck. The only surprise here is that it took BDR this long to take legal action against RML - that and that they entered into the deal with 360OTC in the first place when even fans thought the company seemed sketchy. It also boggles my mind that BDR kept 360OTC on the car and both trucks all of last year in spite of only having received $25,000. No wonder BDR is in such bad shape on the Cup level right now - they must have been spread extremely thin financially last season trying to pay all the bills to field two Cup cars, which is likely why they aren't attempting to continue to field a second car this season without sponsorship.
Of course this is the fourth lawsuit brought against RML for non-payment - Just Marketing, the World of Outlaws and World Wrestling Entertainment also sued. I remain astonished that any of these entities entered into business or sponsorship deals with RML/360OTC. They really must have talked a good game. It's also amazing to me that RML thought they could get away with making these deals and then not paying.
ETA: On another forum there was some speculation that I think is likely on-point and explains why it took so long for BDR to take the 360OTC logos off the car and file suit. By fulfilling their end of the contract and waiting until the season ended, BDR ensured that they could not only sue for the full amount that 360OTC owed them, they also made sure that 360OTC couldn't turn around and accuse them of breach of contract. I highly doubt that BDR will be able to get $18 million from RML but it sure would help them if they got even half that amount.
Posted by silverdsl at April 8, 2008 05:01 PM