A U.S. Bankruptcy judge gave Kmart Corp., Troy, MI, permission to drop its five-year-old sponsorship of NASCAR, Daytona, FL, as part of reorganization efforts. The ailing retailer filed for Chapter 11 protection in February.

Kmart closed the book on its sponsorships after honoring commitments to individual racing teams in February’s Daytona 500 and Winston Cup races.

Other sponsorships are likely to come under the same scrutiny as Kmart looks to cut costs while resurrecting its image.

The chain will maintain a licensing deal with Walt Disney Co., Burbank, CA, to co-produce a new line of children’s clothing. And sponsorship of the Smithsonian Institution’s Wade in the Water gospel music tour (February PROMO) remains unaffected.

Meanwhile, Martha Stewart Living Omnimedia, Inc., Chicago, which suggested a new retail partner might be required when Kmart first filed, now says it will stand by the chain — at least for the time being.

SPEAKING OF NASCAR recruited 12 sponsors for its Busch Grand National racing series, including six first-timers: Panasonic, Pep Boys, Supercuts, Stacker2, Keystone Light, and the Civil Air Patrol.

PLAY TIME McDonald’s Corp., Oak Brook, IL, signed on as the first corporate sponsor of programming on the heretofore ad-free Disney Channel, Burbank, CA. McDonald’s messages will run during Playhouse Disney, a daily educational block for preschoolers. The 15-second spots, patterned after sponsor messages on PBS, will support the Playhouse Disney tagline, “Where Learning is Powered by Imagination.”

HOOK SHOT Verizon Wireless, Bedminster, NJ, became the official wireless service provider for the National Basketball Association, New York City, in a deal that makes it sponsor of the NBA on NBC halftime show for the remainder of the current season. Verizon will send NBA news updates and schedules to wireless service customers.

KID STUFF Nickelodeon, New York City, named videogame maker THQ Inc., Calabasas Hills, CA, master interactive licensee for existing and future properties including Rugrats, SpongeBob Squarepants, and Rocket Power. The deal covers all game platforms and runs through 2005.

TV TIME Children’s merchandise licensor 4Kids Entertainment, New York City, will hit the airwaves by leasing Fox Broadcasting’s Saturday morning programming block. Starting in September, 4Kids will provide all content and retain all ad revenues for the time period in a four-year deal.

THINK TANK Marketing shop Droz and Associates, Pittsburgh, merged with The Institute for Marketing Accountability, Pittsburgh. The alliance gives Droz strategic planning capabilities along with its existing marketing services.

Minnesota will stop selling DMV information to marketers MINNESOTA HAS JOINED several other states that have put the brakes on selling motor vehicle data for marketing purposes.

Under a policy that took effect Aug. 1, Minnesota will restrict the sale of personal information to third parties. Individuals that have no objection to its release for commercial or general use must indicate consent on their driver’s license or vehicle registration application.

The state earns about $2.4 million annually from sales of this data, but estimates the new policy will cause it to lose only about $240,000 a year.

The rule allows for some exceptions. Law enforcement agencies, lawyers, insurance companies, private detectives, banks, accident victims, and under certain circumstances safety experts, researchers and the news media, may access the information on a need-to-know basis without a person’s permission. The Public Safety Commission will decide who is eligible.

Public Safety Commissioner Charlie Weaver ordered an end to the sale of motor vehicle data after state lawmakers failed to act on a driver’s privacy protection bill sponsored by State Sen. Don Betzold. The bill died in committee at the end of the spring legislative session. “As technology plays a greater role in our lives, the privacy of personal information becomes more important,” Weaver said. “We believe that limiting access to driving information is an important step toward maintaining individual privacy rights.”

He also said that the action brings the state in compliance with the provisions of a federal transportation appropriations bill and the Drivers Privacy Protection Act (DPPA), which was passed six years ago.

In January, the U.S. Supreme Court, ruling on a challenge by South Carolina, upheld the constitutionality of the DPPA and its requirement that states provide motorists and vehicle owners with a way of opting out of having their personal data transferred to third parties without permission.

Since that ruling Utah, Ohio and several other states have stopped selling motor vehicle data to direct marketers, mass mailers and list companies.

Several months earlier, Congress approved a $49 billion federal transportation bill that required states to get the written permission of licensed drivers and registered vehicle owners before making their personal data available to marketers. States failing to comply with this mandate face fines of up to $5,000 a day and the loss of some federal transportation aid.

While Betzold supported Weaver’s actions, he said he would like to see Minnesota’s motor vehicle list made available only to law enforcement agencies.