Report: Hooters paying Hendrick Motorsports $900,000 to settle lawsuit over unpaid Chase Elliott sponsorship

Hooters has agreed to pay $900,000 to Hendrick Motorsports to settle the lawsuit over unpaid sponsorship fees that were part of a multi-year agreement between the two entities, per Bob Pockrass of FOX Sports.

Hendrick originally sued Hooters for $1.705 million plus interest in unpaid sponsorship for Chase Elliott last year. Hooters has been closing stores and downsizing, and that meant getting out of the NASCAR business.

When Hooters quit paying the bills, Hendrick dropped them as a sponsor. The payments were to be made four times throughout 2024, scheduled for the 10th of the month in March, June, August and October. The complaint by HMS Holdings LLC claimed that Hooters paid $45,000 in March and then failed to make another payment.

Hooters, Hendrick Motorsports settle lawsuit

“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,” Hendrick said in a statement last July. “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. It has been a privilege having Hooters as a part of our team and we wish them the best.”

Prior to their split, Hooters served as a primary sponsor for Elliott for eight years. In 2021, it extended its sponsorship of Elliott through 2024. Beyond Elliott, Hooters’ involvement with NASCAR dates back to more than three decades ago. Hooters served as the full-time sponsor for Alan Kulwicki during his Cup Series championship winning season in 1992.

Elliott’s lone win last season (Texas) came in a race in which Hooters served as his primary paint scheme. It was his first win using the Hooters paint scheme and the first for Hooters since that 1992 campaign.

On3’s Jonathan Howard contributed to this report.