Hendrick Motorsports, one of the most iconic and successful teams in NASCAR history, has filed a lawsuit against Hooters, accusing the restaurant chain of failing to pay nearly $2 million in sponsorship fees. This legal battle emerges after Hendrick Motorsports terminated its sponsorship agreement with Hooters, which had been a part-time sponsor for NASCAR’s most popular driver, Chase Elliott, since 2017.
Hooters’ sponsorship of Elliott included 24 races as the primary sponsor of the 2020 NASCAR Cup Series champion’s car. The partnership was a high-profile collaboration, continuing Hooters’ long-standing history in the sport, which dates back to the early 1990s when the brand sponsored NASCAR Hall of Famer and championship-winning driver Alan Kulwicki.
According to a report by Collin Hugley of the Charlotte Business Journal, the lawsuit claims that Hooters was contractually obligated to pay Hendrick Motorsports $1.75 million annually, divided into four installments of $437,500 each. The payments for the 2024 season were scheduled for March 10, June 10, August 10, and October 10. However, court records reveal that Hooters made only a partial payment of $45,000 in March and failed to make the subsequent payment due in June.
In addition to the missed payments, Hendrick Motorsports alleges that Hooters has explicitly refused to fulfill any remaining payments for the 2024 season. The complaint filed by Hendrick Motorsports states, “Hooters has represented to HMS that it will not be paying any portion of the remaining two installments for the 2024 term under the Sponsorship Agreement, as amended, that are due on August 10, 2024, and October 10, 2024.” The lawsuit further explains that Hendrick Motorsports was left with “no further options to protect its rights and interests” and thus decided to pursue legal action to enforce the terms of the sponsorship contract.
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This dispute between Hendrick Motorsports and Hooters comes at a challenging time for the restaurant chain, which has been facing financial difficulties and closing stores across the country. Recent reports indicate that 41 Hooters locations shut down between mid-January and the end of June, reflecting the broader struggles of the brand.
In the wake of the sponsorship fallout, Hendrick Motorsports has continued to secure strong partnerships for Chase Elliott. NAPA Auto Parts remains Elliott’s primary sponsor, and Coca-Cola recently stepped in to replace Hooters as the sponsor for Elliott’s car at Richmond Raceway.
The lawsuit underscores the high stakes involved in NASCAR sponsorships, where multi-million-dollar deals are crucial for teams to maintain their competitive edge.
As the legal proceedings unfold, the outcome will likely have significant implications not only for Hendrick Motorsports and Hooters but also for the broader NASCAR sponsorship landscape.
