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Hooters and Hendrick Motorsports Reach Settlement Over Sponsorship Fallout

Originally posted on Athlon Sports | By Kyle Dalton | Last updated Mar 21, 2025 11:38 AM ET

In NASCAR, sponsorships are everything. Literally. It’s how all the teams survive in the sponsorship-driven business model. So when a major sponsorship falls through for whatever the case may be, it has an impact on the team and the broader organization's bank account.

Fans of Chase Elliott recognize that Hooters had been a main sponsor of the No. 9 car since 2017. The 2020 champion and seven-time most popular driver last won in the Hooters car at Texas Motor Speedway in April 2024.

Surprisingly, less than three months later — in early July of that year — HMS revealed that the restaurant chain had been unable to meet its sponsorship obligations and had ended the relationship.

Several weeks later, HMS Holdings LLC filed a lawsuit against Hooters, according to Mecklenburg County court records. The complaint stated that Hooters was supposed to pay HMS four installments annually totaling $1.75 million.

The 2024 payments of $437,500 each were due on March 10, June 10, Aug. 10 and Oct. 10, court records indicated. The team alleged Hooters made a partial, $45,000 payment in March before failing to make its June payment.

It's also notable around that same time, Hooters' financial struggles were known and the company had announced the closure of 44 locations nationwide.

Hooters has agreed to pay $900K to Hendrick Motorsports, according to court records. HMS had originally sued Hooters for $1.705 million plus interest for what it had not paid for 2024 sponsorship for Chase Elliiott ($1.75M deal; team had announced three primaries plus associate).
— Bob Pockrass (@bobpockrass) March 21, 2025

On Friday, Fox’s Bob Pockrass revealed, according to court records, a settlement had been reached and Hooters agreed to pay $900,000 of the total amount.

It's an unfortunate end to what was a successful partnership in the sport that was also a popular one with the sport's most popular driver.

This article first appeared on Athlon Sports and was syndicated with permission.

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