Announcement: Hendrick Motorsports Sues Chase Elliott’s Ex-Sponsor With $1.7 Million Worth Legal Attack

Hooters has sponsored Chase Elliott’s No. 9 vehicle for the past seven years. After the sponsorship had gone smoothly from the start, the franchise outlet came into financial difficulties, forcing it to close 40 locations across the United States. According to bizjournals.com, Hooters of America LLC failed to pay $1.7 million plus interest for unpaid sponsorship costs, citing this concern.

Rick Hendrick did not take this lying down, and on July 30, he filed a lawsuit against Hooters. This was discovered in Mecklenburg County’s court records. However, before launching the complaint, HMS chose to drop Hooters as a sponsor. A total of four $437,500 installments were due on March 10, June 10, August 10, and October 10. The restaurant franchise made a partial payment of $45,000 in March, but fell short of the June payment.

Following legal action, the plaintiff stated that “Hooters has represented to HMS that it will not pay any portion of the remaining two installments for the 2024 term under the Sponsorship Agreement, as amended, due on August 10, 2024, and October 10, 2024.”The Charlotte Business Journal sought Hendrick Motorsports for comment on the complaint, but they declined.

Hendrick Motorsports cuts ties with Hooters

Dissatisfaction with Hooters began in June, when they neglected to pay HMS sponsorship funds. This prompted the team to contemplate retaining the franchise as a sponsor. The team appreciated Hooters’ contributions to their performance both on and off the track before citing their inability to pay debts.

The statement highlighted the team’s key issue: “Due to these regrettable and unanticipated circumstances, and despite great efforts to identify

According to The Associated Press, Hooters’ public relations firm, Cookerly PR, has not responded to any messages. Although Hooters’ affiliation with NASCAR began in the early 1990s, when the restaurant sponsored Allan Kulwicki, it will cease this year.Both Kulwicki and Elliott enjoyed great success when sponsored by Hooters; but, due to the restaurant chain’s recent collapse, their association with HMS has ended.

That being said, which company’s sponsorship would you like to see on the No. 5 HMS Chevy?