Hendrick Motorsports is pursuing legal action against Hooters of America LLC, alleging that the restaurant chain owes them $1.7 million in unpaid sponsorship fees. This legal dispute follows the recent termination of their sponsorship agreement with Hooters, which had been backing Chase Elliott’s No. 9 Chevrolet Camaro since 2017. The restaurant chain had sponsored Elliott’s car in various NASCAR series, including the Cup Series, Xfinity Series, and Truck Series.
The lawsuit, filed with the Mecklenburg County Superior Court on July 30, accuses Hooters of failing to fulfill its financial obligations for the 2024 season. According to Hendrick Motorsports, Hooters made only a partial payment of $45,000 in March but neglected to make the subsequent payment due in June.
The legal complaint outlines that Hendrick Motorsports and Hooters entered into a sponsorship agreement in 2018, which was renewed several times. Under the terms of the most recent contract, Hooters was required to pay $1.75 million in four installments throughout 2024, with payment dates scheduled for March 10, June 10, August 10, and October 10.
In the complaint, Hendrick Motorsports asserts that Hooters has indicated it will not pay the remaining two installments due on August 10 and October 10, 2024. The complaint 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… Left with no further options to protect its rights and interests, HMS files this action to enforce its rights pursuant to the contract at issue.”
The financial difficulties facing Hooters, a Georgia-based company, have been exacerbated by economic pressures and rising operational costs, leading the company to announce the closure of several U.S. locations. Hooters has also stated that it will not meet the remaining payment obligations under the sponsorship deal. Hendrick Motorsports has not yet commented on the ongoing litigation.
In a separate development, Chase Elliott has expressed his current focus on enhancing his racing performance. In a recent interview with The Athletic, the 2020 NASCAR Cup Series Champion shared his thoughts on his racing goals and what motivates him.
Elliott emphasized that his primary goal at present is to win more races and maintain a competitive edge in his career. “Right now, it’s winning more races, to be honest with you. That’s a really high priority for me in my life right now, trying to get to just a good competitive place here. That’s really all I’ve got going on,” Elliott said.
He elaborated that for him, success in racing is not solely defined by winning but by the overall performance and impact he makes on the track. “Because I want to make a difference. I want to feel like I’m in the mix and have a shot. That is what makes it fun for me and also what makes it be a good day or a bad day,” Elliott added.
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