**Hooters Agrees to $900,000 Settlement with Hendrick Motorsports Over Unpaid Chase Elliott Sponsorship**
In a significant development within the NASCAR community, Hooters, the renowned restaurant chain, has agreed to pay Hendrick Motorsports $900,000 to settle a lawsuit concerning unpaid sponsorship fees for driver Chase Elliott’s No. 9 car. This settlement comes after a protracted legal dispute that initially sought $1.705 million in damages.
**Background of the Sponsorship Agreement**
Hooters and Hendrick Motorsports entered into a multi-year sponsorship agreement to back Chase Elliott’s No. 9 car. The 2024 agreement stipulated that Hooters would serve as the primary sponsor for select races, contributing a total of $1.75 million in sponsorship fees, payable in four installments. However, Hooters failed to meet these financial obligations, leading to the legal action by Hendrick Motorsports. citeturn0search8
**Details of the Legal Dispute**
In August 2024, Hendrick Motorsports filed a lawsuit against Hooters, alleging non-payment of the agreed sponsorship fees. The lawsuit sought $1.705 million, encompassing the unpaid sponsorship amount plus interest. Hooters had made a partial payment of $45,000 in March 2024 but subsequently ceased payments, prompting the legal action. citeturn0search1
**Terms of the Settlement**
After months of legal proceedings, both parties reached a settlement agreement in March 2025. Hooters agreed to pay $900,000 to Hendrick Motorsports, resolving the dispute over the unpaid sponsorship fees. This amount represents just over half of the original $1.705 million sought in the lawsuit. citeturn0search6
**Financial Implications for Hooters**
The settlement is a notable financial commitment for Hooters, especially considering the company’s recent operational challenges, including store closures and downsizing efforts. These challenges have impacted Hooters’ ability to fulfill sponsorship obligations, leading to the termination of their NASCAR sponsorships, including the partnership with Hendrick Motorsports.
**Impact on Hendrick Motorsports**
For Hendrick Motorsports, the settlement provides partial compensation for the unmet sponsorship commitments. The funds are expected to mitigate the financial impact of the lost sponsorship revenue and allow the team to seek alternative partnerships to support their racing endeavors. citeturn0search0
**Industry Reactions**
The settlement has elicited various reactions within the NASCAR community. Some fans have expressed disappointment over Hooters’ financial difficulties affecting their sponsorship commitments, while others have questioned the potential impact on Chase Elliott’s performance and team morale. citeturn0search8
**Looking Ahead**
As the 2025 NASCAR season progresses, teams and sponsors alike are closely monitoring the situation, considering the potential implications for future sponsorship agreements and financial stability within the sport. The Hooters-Hendrick Motorsports case serves as a cautionary tale about the importance of financial reliability and transparency in motorsport sponsorships.
**Conclusion**
The resolution of the sponsorship dispute between Hooters and Hendrick Motorsports underscores the complexities and challenges inherent in motorsport sponsorships. While the settlement provides partial restitution for Hendrick Motorsports, it also highlights the need for sponsors to maintain financial stability to uphold their commitments within the high-stakes environment of professional racing.
