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  Debate

Debate

Is Rick Hendrick's $1.7 million legal move justified, or is it a step too far?

Hooters. The restaurant franchise made its NASCAR debut more than four years before Chase Elliott was even born. It was 1991, and Alan Kulwicki came into the season without a sponsor. Then came Hooters in the final race of 1991, and one year later – almost to the date – Kulwicki was crowned the 1992 Winston Cup champion. At the Hooters 500 in Atlanta. Who did he beat? Bill Elliott, Chase’s father.

The restaurant franchise had a memorable first few years in the Cup Series, and in 1995, it jumped into late model. It happened because, on Hooters’ 10th anniversary, the chairman Robert Brooks lost his son, as well as Alan Kulwicki, in a plane crash. While other drivers in NASCAR continued to race under the Hooters banner, the most notable partnership was its 2017 sponsorship deal with Hendrick Motorsports‘ Chase Elliott.

For seven years, that partnership between Hooters and the No. 9 car was going strong. That was until July of this year. The restaurant chain faced some financial issues, which led to its shutting down operations in 40 locations across the United States. That was around the time Hendrick Motorsports abruptly cut its ties with the company because it had “not been able to meet its business obligations to our organization.” But HMS also gave Hooters its due credit.

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Stating that Hooters contributed to their “shared successes both on and off the track,” the statement further read, “It has been a privilege having Hooters as a part of our team, and we wish them the best.” But the niceties ended when Rick Hendrick & Co. decided to file a lawsuit against Hooters of America LLC for $1.7 million, plus interest, for alleged unpaid sponsorship fees on July 30, as reported by bizjournals.com.

According to the complaint registered in the Mecklenburg County court records, Hooters was obligated to pay four payments of $437,500 each in 2024, due on March 10, June 10, August 10, and October 10. These installments add up to $1.75 million. Although the restaurant franchise managed to make a partial payment of $45,000 in March, they fell short when it came to the June payment. And now, HMS has initiated legal action.

As a result, the plaintiff mentioned, “Hooters has represented to HMS that it will not be paying any portion of the remaining two installments for the 2024 term under the Sponsorship Agreement, as amended, that are due on August 10, 2024, and October 10, 2024.” When the Charlotte Business Journal approached Hendrick Motorsports for a comment on the lawsuit, they declined to speak on the case.

According to reports from The Associated Press, Hooters’ public relations firm, Cookerly PR, has not returned any of HMS’ messages. Although the relationship between Hooters and NASCAR started in the early 90s, with the franchise first sponsoring Alan Kulwicki, their relationship with NASCAR teams will end this year. Both Kulwicki and Elliott have achieved major success with Hooters; however, after the recent crisis the restaurant chain has faced, their partnership with HMS is over.

What’s your perspective on:

Is Rick Hendrick's $1.7 million legal move justified, or is it a step too far?

Have an interesting take?

However, it wasn’t before Chase Elliott paid tribute to Alan Kulwicki and his partnership with Hooters.

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Chase Elliott honored Alan Kulwicki in Texas, sporting Hooters colors

Elliott’s lone win of the 2024 season came at the Texas Motor Speedway, breaking a 42-race winless streak. Having not won a race for over a year, this victory would be emotional. Everyone knew that. What made it even more special was the Hooters paint scheme on the No. 9, which gave the restaurant chain its first victory since Alan Kulwicki’s 1992 Pocono outing on June 14.

The ‘Polish King’ defeated Chase Elliott’s father that season using math during the race. Even though he knew Bill Elliott would most likely win the Hooters 500, Kulwicki – in second place – realized he just needed the five extra points awarded for the most laps led to win the championship. That’s precisely what he did, leading 103 laps compared to Elliott’s 102.

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After Chase Elliott won in Texas, he honored the late driver’s legacy by doing a Kulwicki-inspired Polish Victory lap. As he climbed out of his Hooters-sponsored car after that, Elliott said, “It’s been a dream of mine to pay respect to the late Alan Kulwicki. Driving this car to a victory and being able to do a Polish Victory lap. Really crazy how things came full circle there in that moment. It was pretty emotional to me; he beat Dad back in the day, and here we are, sharing his sponsor. I couldn’t be more grateful for the journey.”

That said, now that HMS has cut ties with Hooters, which company’s sponsorship would you like to see on the No. 9 HMS Chevy? Let us know your thoughts in the comments!