Hendrick Motorsports Suing Former Sponsor Hooters Over Unpaid Sponsorship Fees
An entity affiliated with NASCAR Cup Series team Hendrick Motorsports is taking legal action against former sponsor Hooters of America LLC for $1.7 million, plus interest, for alleged unpaid sponsorship fees.
According to Mecklenburg County court records, which were first obtained and reported on by The Charlotte Ledger on Wednesday, HMS Holdings LLC filed its complaint on July 30, suing Hooters for breach of contract and unjust enrichment.
The lawsuit comes just weeks after Hendrick Motorsports publicly terminated its long-standing relationship with the popular restaurant chain, after the motorsports giant claimed Hooters had "not been able to meet its business obligations" to the team.
Since 2017, Hooters has served as a multi-race primary sponsor for 2020 NASCAR Cup Series champion Chase Elliott, who currently drives the No. 9 Chevrolet Camaro for Hendrick Motorsports. During the eight-year partnership, the company adorned Elliott's vehicle in 24 races.
Per the complaint, cited Thursday by the Charlotte Business Journal, Hooters was bound by its sponsorship contract to pay Hendrick Motorsports four annual installments totaling $1.75 million, with payment dates scheduled for March 10, June 10, August 10, and October 10. HMS alleges that Hooters made a partial payment of $45,000 in March, but then failed to make its next payment in June.
"Further, 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 plaintiff wrote in its complaint against Hooters. "Left with no further options to protect its right and interests, HMS files this action to enforce its right pursuant to the contract at issue."
Racing America On SI has reached out to Hendrick Motorsports in an attempt to obtain a comment or statement from the organization, but as of the time of publishing, has yet to receive a response. A response, if provided, will be added to this story.
JOSEPH SRIGLEY