Hendrick Motorsports is poised to receive a substantial financial boost following a legal settlement with restaurant chain Hooters. The dispute, which began in 2024, centered around allegations that Hooters failed to meet its sponsorship obligations to the NASCAR team.
In 2024, Hendrick Motorsports entered into a sponsorship agreement with Hooters, designating the restaurant chain as the primary sponsor for driver Chase Elliott’s No. 9 car in three NASCAR Cup Series races. However, the team claimed that Hooters did not fulfill its financial commitments as stipulated in the contract. This led Hendrick Motorsports to file a lawsuit in August 2024, seeking $1.7 million plus interest in damages. The team had already terminated its relationship with Hooters in July 2024, stating:
“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.”
The legal proceedings have now concluded with Hooters agreeing to pay Hendrick Motorsports $900,000. While this amount is less than the initially sought $1.7 million, it still represents a significant financial gain for the team. This settlement allows Hendrick Motorsports to recoup a portion of the anticipated sponsorship funds and reinforces the importance of contractual adherence in sponsorship agreements within the motorsports industry.
As the 2025 NASCAR season progresses, Chase Elliott and the No. 9 team aim to move forward from this dispute and focus on achieving success on the track.
