Chase Elliott’s ex-sponsor Hooters forced to pay $900K to Hendrick Motorsports after lawsuit

Restaurant chain Hooters, who served as NASCAR driver Chase Elliott's sponsor for eight years, will be paying Hendrick Motorsports $900K as per court records. The news was shared earlier by journalist Bob Pockrass, who also mentioned that HMS' initially sued the eatery company for $1.705-million along with interest for their failure to pay for the 2024 sponsorship contract with Elliott.

News of Hendrick Motorsports' suing of the restaurant chain came in August of last year, weeks after they had announced to be going seperate ways due to the chain's inability to meet its obligations to the team. A statement released by the organization in July stated:

"Hooters has been a valued partner of Hendrick Motorsports since 2017, contributing to our shared successes both on and off the track. In recent months, however, Hooters has not been able to meet its business obligations to our organization. Due to these unfortunate and unexpected circumstances, and despite extensive efforts on both sides to identify a workable solution, it became necessary for Hendrick Motorsports to end the relationship." [via Racing America]

Now, according to Pockrass, the restaurant chain will be paying out $900k, which is over half the amount for which the lawsuit was filed.

Chase Elliott had a sponsorship agreement with the Atlanta-based chain that began in 2017 and ended in 2024, covering a total of 24 races where the restaurant branding prominently featured on the #9 car.

The last race Elliott raced with the restaurant's branding was at Texas Motor Speedway in spring of last year, where the #9 driver secured his first victory since 2022, ending a long no-win streak.

Further details regarding Hendrick Motorsports' complaint against Hooters

Chase Elliott (9) celebrates in Victory Lane after winning the NASCAR Cup Series AutoTrader EchoPark 400 at Texas Motor Speedway, April 14th 2024 - Source: Imagn

Through a series of four installments, the food-and-beverage establishment was set to pay HMS $1.75 million, and while they made a payment of $45,000 at their first installment mark on March 10th, they failed to meet the other payment dates of June 10, August 10, and October 10. The complaint filed with the Mecklenburg County court reads:

"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. 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." [via Racing America]

Last year, after failing to meet their business obligations to HMS, Hooters also announced the closure of 40 restaurants across the United States.