Cisco faces red flag over McLaren writ

Formula One racing company McLaren International is suing Cisco Systems for damages of more than $1.5 million, after the US networking vendor ended the two companies' sponsorship agreement.

McLaren has issued a High Court writ claiming damages and interest from Cisco, in which it seeks payments of £28,591 for events on 26 July, 3 and 10 October 1996. It is also seeking £5,997 and $54,588 for the VIP hospitality packages provided, which the writ states Cisco failed to pay, despite being invoiced.

Cisco had agreed to sponsor McLaren from 28 February 1996 to 31 December 1998, paying a total of $2 million in fees by March 1998. It also undertook to provide product and technical support free of charge. In return, McLaren agreed to organise motorsport events for Cisco.

On 11 October 1996, Cisco VP Richard Freemantle wrote to McLaren's MD, terminating the agreement from 30 November 1996, which the writ claims was wrongful and in breach of contract.

McLaren responded by asking for all outstanding bills to be paid.