Hooters, the sponsor of Chase Elliott’s No. 9 Chevrolet, is the target of a multi-million dollar lawsuit filed by Hendrick Motorsports. The case, which was filed on July 30, is centered on what Hendrick claims is a sponsorship agreement violation with potentially significant financial ramifications.
According to court documents, the restaurant chain, which began its relationship with Elliott and Hendrick in 2017, was obligated under the contract to provide sponsorship payments in four installments of $437,500 each, as per a report from Autoweek.
These payments were scheduled throughout the racing season – with the first due in March, followed by subsequent installments in June, August, and October.
Hooters, however, reportedly failed to follow through after an initial payment of $45,000 in March, leaving an alleged outstanding balance exceeding $1.7 million.
The parties’ relationship has noticeably changed since this lawsuit was filed.
Hendrick Motorsports asserts that Hooters was unable to meet its financial obligations by the end of June, as evidenced by the Hooters sticker being noticeably missing from Elliott’s car’s associate sponsor position at the Nashville race.
Hooters’ problems seem to extend beyond its NASCAR obligations, as the company’s June announcement regarding the closure of 44 “underperforming” facilities around the country suggests.
In the middle of all of this turmoil, Chase Elliott had won a big race in Texas earlier in the season while representing the Hooters. This win was historic since it was the first for Hooters as the main sponsor since 1992, commemorating a much-needed victory since Alan Kulwicki’s victory at Pocono.
This news as come during the race weekend at Daytona International Speedway. The dramatic Coke Zero Sugar 400 saw Elliott wrapped up in a crash.
