Hooters pays $900k to settle Hendrick Motorsports lawsuit

Hooters has agreed to pay $900,000 to Hendrick Motorsports to settle a legal dispute. The NASCAR team had sued Hooters for unpaid sponsorship fees related to driver Chase Elliott. Hooters had been a primary sponsor for Elliott for eight years. The restaurant chain, a long-time player in NASCAR since 1991, started its partnership with Elliott in 2017. They celebrated their previous success when they sponsored Alan Kulwicki in his 1992 championship win. The lawsuit began when Hooters failed to pay part of a $1.75 million sponsorship deal for the 2024 season. Hendrick Motorsports initially sought $1.705 million plus interest. After Hooters began missing payments, the team ended their partnership. Rick Hendrick, the team owner, expressed disappointment at the separation. He acknowledged Hooters as a valued partner but noted the company could not meet its financial obligations. Hooters also commented on the situation. The chain is facing challenges amid current market conditions, and it has decided to close some underperforming locations. Despite this, Hooters is expanding and launching new products, aiming to remain relevant in the market. As for Chase Elliott, Amazon Prime Video has stepped in as the primary sponsor, with a contract running until 2027.