Report: Hendrick Motorsports affiliate suing Hooters for $1.7 million in unpaid sponsorship fees

It appears that the Hendrick Motorsports and Hooters breakup saga is not over yet. An HMS affiliate is reportedly suing the company. The NASCAR team is seeking unpaid sponsorship fees that were part of a multi-year agreement between the two entities.

Hooters has a long history in NASCAR. Longtime fans will associate it with Alan Kulwicki. Modern fans identify the brand more with Chase Elliott. After a number of years together, and finally a Cup Series victory this year in Texas, the two are no longer associated.

HMS Holdings LLC has filed a complaint against Hooters, dated July 30 according to Collin Huguley of the Charlotte Business Journal.

Huguely reports that Hendrick Motorsports is seeking $1.7 million in unpaid sponsorship fees. That is sort of how the whole breakup happened. Hooters has been closing stores and downsizing, and that meant getting out of the NASCAR business.

When Hooters quit paying the bills, $1.75 million in total, Hendrick dropped them as a sponsor. The payments were to be made four times this year, scheduled for the 10th of the month in March, June, August, and October.

The complaint by HMS Holdings LLC claims that Hooters paid $45,000 in March and then failed to make another payment.

Hendrick Motorsports replaced Hooters at Richmond

The Richmond night race was supposed to be a Hooters-sponsored race for Chase Elliott. With the fallout, it was switched around last minute. Of course, Elliott has a number of sponsors who are happy to support him in a time like this.

Hendrick Motorsports pulled out all the stops. They also sent a message to their former partner, Hooters. HMS had Coca-Cola on the car, Elliott is one of the Coke Racing drivers. The scheme was complete with a Slim Chickens associate sponsorship.

Trading one chicken brand for the next. Somewhere, they have to pick up the Chase Elliott chicken tenders meal, right? Why not Slim Chickens? I’m sure Elliott fans are dying to support the next sponsorship partner that steps up.

So, it appears that this saga isn’t over. This season has been a bit of a litigious one in NASCAR. Kyle Busch Motorsports took Rev Racing to court over unpaid fees for supplying their Truck Series trucks and equipment. Not related, just an interesting phenomenon in the sport this year.