$4 Million Lawsuit Battle Ensues After Ugly Fallout Between NASCAR Team and Real Estate Giant

The Cup Series in 2022 went through one big sponsorship ‘brawl’ between Mars & Wrigley, Kyle Busch, and Joe Gibbs Racing. But it turns out another NASCAR team has had troubles of its own, which could end up in a protracted legal battle before things come to an end.

Jesse Iwuji Motorsports competed in its first season in the Xfinity Series in 2022. Objectively, they weren’t brilliant or trailblazers; they finished in 29th place in the Series. The team entered one car, a #34 Chevrolet, in the competition which was shared by 4 drivers: Jesse Iwuji, Jesse Little, Kyle Weatherman, and Kaz Grala.

However, from public records made available by the United States District Court Southern District of Florida Fort Lauderdale Division, it has come to note that they are currently fighting a legal battle for a breach of sponsorship contract by their sponsor, Equity Prime Mortgage, LLC.

EPM had agreed to pay JIM $2.25 million, in equated monthly installments, starting December 1, 2021, as sponsorship. Furthermore, the team was supposed to receive $3.75 million for the second year, starting December 1, 2022, in a similar manner.

However, they were informed at the end of September that EPM had made a margin call and was no longer in a position to make those payments. Having provided adequate notices, and the time required to be provided in such cases, EPM has now begun litigation.

The team is seeking the full payment of the dues missed in 2021, and also of those lapsed in 2022. They total a sum of $4.125 million.

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These are circumstances that a junior team like JIM would not have liked so early in their time racing. 

NASCAR saw another ferocious sponsorship saga in 2022

Although the JIM and EPM sponsorship battle involves litigation but is otherwise quite straightforward. Moreover, given the nature of the litigation, it is unlikely to cause too much upheaval.

But in 2022, NASCAR witnessed another sponsorship saga that was much more high-octane. It had more drama and affected large groups of fans as it involved a team and a driver that has been in the sport for more than 15 years.

The 2022 year was the 15th season that Kyle Busch and Joe Gibbs Racing had spent in the Cup Series, together. It was also the 15th season of The Candyman’s sponsorship by Mars & Wrigley.

However, the sweets manufacturing giant cutting off its sponsorship ties with the driver put him into a tough position. Although he is a 2-time champion and a serial winner, he was unable to find another sponsor for himself.

That further snowballed and came to a head when his talks with JGR for a contract renewal failed. JGR continued to maintain that they couldn’t agree on suitable terms, the driver argued that the team had “other irons in the fire”.

In the end, he ended his time with the team on a bitter note.

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The 2023 season brings a clean slate for Busch. Can he draw a new legacy on this new slate?