In the early 1990s, Hooters etched its name into NASCAR history by sponsoring Alan Kulwicki, who famously won the 1992 Winston Cup Championship at Atlanta Motor Speedway in the Hooters 500. The partnership symbolized the restaurant chain’s bold entry into the world of motorsports.
Decades later, Hooters finds itself in a drastically different position, embroiled in financial turmoil and legal disputes with one of NASCAR’s most successful teams.
Once a brand that celebrated victory lane, it now faces a battle off the track, one that could redefine its future in the sport.
Hendrick Motorsports filed a lawsuit against Hooters on July 30, 2024, seeking $1.7 million plus interest for unpaid sponsorship fees. Under their agreement, Hooters was obligated to pay $1.75 million in four installments throughout the year to sponsor Chase Elliott’s No. 9 Chevrolet in the NASCAR Cup Series. However, after making an initial payment, Hooters failed to meet subsequent deadlines in June, August, and October.
Although the company sponsored two of Chase Elliott’s races last year and the fall Richmond race as well, things didn’t look like they were ending well. The lawsuit followed soon, and now, there’s an update. As Bob Pockrass reported, “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 Elliott ($1.75M deal; team had announced three primaries plus associate).”
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
In response to Hendrick Motorsports’ lawsuit, Hooters agreed to settle for $900,000 a significant reduction from the original claim but still a substantial amount for a company on the brink of bankruptcy. The settlement, though less than what was initially sought, highlights the financial strain on Hooters and the necessity of damage control.
The breach of contract prompted Hendrick Motorsports to terminate the sponsorship deal in June 2024. The absence of Hooters branding on Elliott’s car during the Nashville race signaled the end of their partnership, which had begun in 2017 and included notable campaigns like “When Chase Wins, You Win,” offering fans free wings whenever Elliott secured a victory. In 2022, Hooters even started a virtual brand called Chase Elliott’s Chicken Tenders. Yet, the success couldn’t last.
Hooters’ financial struggles extend beyond NASCAR sponsorships. The casual dining chain has faced mounting debts totaling $300 million and recently closed nearly 40 underperforming locations nationwide. Despite its efforts to diversify revenue streams through international expansion and frozen food products, Hooters has seen declining sales in the U.S., with figures dropping nearly 15% since 2018.
Rising costs and shifting consumer preferences have forced many chains to reevaluate their business models. Whether Hooters can recover from its financial woes or fade into history remains uncertain. Nostalgia for Hooters’ past successes in NASCAR, most notably Alan Kulwicki’s championship win, lingers within the racing community. However, as Rick Hendrick noted in another context, success requires building a solid foundation: “He built it a brick at a time. You try to get your base right, and you can grow it.”
While this settlement provides temporary relief for both parties, it underscores the precarious nature of sponsorship agreements in sports. For Hooters, once a celebrated name in NASCAR, this legal battle serves as a stark reminder of how quickly fortunes can change in the fast-paced world of motorsports and business alike.
That doesn’t mean Elliott doesn’t have a sponsor in the season. The No. 9 car has Amazon Prime Video as one of its biggest sponsors this year, with their car debuting at Talladega just a few weeks down the road. With Hooters out of the picture, having a giant like Amazon in their garage will be a big boost to the team, and the folks at Prime Video know that. With the platform broadcasting races this year, adding the Most Popular Driver to their list of sponsored teams was the cherry on the cake.
“It represents an exciting extension of our new NASCAR relationship. Chase is a wildly popular, championship-winning driver, and we can’t wait to see the No. 9 Prime Video team in action as we approach our streaming debut,” said Stacey Rosenson, Head of US Marketing for the company.
Rick Hendrick couldn’t help but contain his joy at working with the company. He said, “They’ve committed to our sport in a big way and are taking an innovative approach to delivering world-class broadcasts and content to our fans. Hendrick Motorsports is ready to support their efforts, and we look forward to building something special together over the next three years.”
What’s next for Hendrick Motorsports and its drivers?
When the season kicked off earlier this year, it looked like Chase Elliott was placed firmly to set some new records. After all, his win during the Clash at Bowman Gray set expectations high for the HMS driver. However, things haven’t gone his way so far. Even Jeff Gluck noticed it! Speaking about the HMS driver, Gluck expressed surprise at how the season wasn’t going well for the 2020 Cup Series Champion.
“Like seriously how did Chase Elliott become like sort of the fourth Hendrick car. And I mean you could say well wait a minute that’s Bowman,” Gluck said. How does the guy scoring 7 MPA driver titles in a row and someone who continually won at HMS be considered the 4th driver? Well, in a way, there’s credit to the team and its drivers. Bowman, particularly has been one of the most consistent drivers this season, with 4 Top 10s so far.
But he hasn’t outdone his teammates. William Byron won the points opener in Daytona. Kyle Larson has had a string of strong finishes lately. Perhaps this might be the reason why a driver like Elliott was ranked lower on Gluck’s list.
What the racer from Dawsonville would look to eliminate is the lack of wins from his record. His last win was in 2024, during the April race at the Texas Motor Speedway, and that too came after snapping a 42-race winless streak.
The post Sued for $1.7 Million, Chase Elliott and Rick Hendrick Get Million Dollars Richer as Iconic Sponsor Goes Bankrupt appeared first on EssentiallySports.