In July 2024, Hendrick Motorsports filed a lawsuit against Hooters of America LLC, alleging breach of contract and seeking over $1.7 million in unpaid sponsorship fees. The dispute centers on Hooters’ failure to fulfill its financial obligations under a sponsorship agreement for Chase Elliott’s No. 9 car in the NASCAR Cup Series.
Background of the Sponsorship Agreement
Hooters had been a primary sponsor for Chase Elliott since 2017, contributing to the team’s success both on and off the track. The agreement stipulated four annual payments of $437,500 each, due on March 10, June 10, August 10, and October 10. However, in March 2024, Hooters made only a partial payment of $45,000 and subsequently failed to make the June payment. The company also indicated it would not pay the remaining installments due in August and October.
Hendrick Motorsports’ Legal Action
In response to these non-payments, Hendrick Motorsports initiated legal proceedings against Hooters, seeking the outstanding $1.7 million plus interest. The lawsuit alleges that Hooters’ actions constitute a breach of contract and unjust enrichment. Hendrick Motorsports has declined to comment further on the ongoing litigation.
Hooters’ Financial Challenges
The dispute coincides with financial difficulties faced by Hooters, including the closure of 44 locations nationwide. These challenges have impacted the company’s ability to meet its sponsorship commitments, leading to the termination of its partnership with Hendrick Motorsports. ๎cite๎turn0search4๎
Chase Elliott’s Performance Amidst Sponsorship Changes
Despite the sponsorship issues, Chase Elliott secured a victory at Texas Motor Speedway in April 2024, driving the No. 9 car adorned with Hooters’ colors. This win was particularly significant as it marked Hooters’ first Cup Series victory since 1992, when Alan Kulwicki won at Pocono. Elliott paid tribute to Kulwicki by performing a Polish Victory Lap after his win.
Future Sponsorship Plans
Following the end of the partnership with Hooters, Hendrick Motorsports has secured a new sponsorship deal with Amazon Prime. Starting in 2025, Amazon Prime will sponsor Chase Elliott’s car for three races annually through 2027, aiming to promote Prime Video’s NASCAR Cup Series streaming rights. The sponsorship will debut at Talladega on April 27, 2025.
The legal dispute with Hooters underscores the complexities of sponsorship agreements in professional sports and highlights the financial challenges that can arise for both teams and sponsors. As the lawsuit progresses, it will be closely watched by stakeholders within the NASCAR community.
