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NASCAR Cup: Hendrick Motorsports faces lawsuit

The No. 5 Hendrick Motorsports Chevrolet of Kasey Kahne, sponsored by Farmers Insurance (photo courtesy of Getty Images for NASCAR)

The No. 5 Hendrick Motorsports Chevrolet of Kasey Kahne, sponsored by Farmers Insurance (photo courtesy of Getty Images for NASCAR)

By AMANDA VINCENT

Sports Marketing Consultants has filed a lawsuit against Hendrick Motorsports regarding commissions owed for the obtainment of the Farmers Insurance sponsorship of the No. 5 Hendrick Motorsports Chevrolet of driver Kasey Kahne in the Monster Energy NASCAR Cup Series, according to an ESPN.com report. Hendrick Motorsports refused to comment on the lawsuit.

Farmers Insurance has been a primary sponsor on the No. 5 car yearly since 2012 and that relationship with the team spans two contracts, the first for the period of the 2012 through 2014 seasons and the second from 2015 until 2017. HMS was notified last year that the existing contract to expire at the end of the current season wouldn’t be renewed for next year. Also, Hendrick Motorsports has released Kahne, effective at the end of the season, with one year remaining on his contract. As a result, team owner Rick Hendrick has committed to paying Kahne next year, even though Kahne won’t be driving one of his race cars.

According to the ESPN report, the approximation of Farmers’ per race sponsorship over the course of its relationship with HMS was about $660,000. The first contract included a performance clause and royalties to be paid to Farmers Insurance for merchandise sales. The second contract, which had Farmers Insurance sponsoring fewer races, did not. Both contracts included morals and appearance clauses.

The ESPN story also mentioned that the first $43.88 million contract resulted in a $3.38 million commission to Sports Marketing Consultants.

Follow Auto Racing Daily on Twitter @AutoRacingDaily or like Auto Racing Daily on Facebook (facebook.com/autorcngdaily). Amanda’s also on Twitter @NASCARexaminer and has a fan/like page on Facebook (facebook.com/nascarexaminer).

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Posted by on September 19, 2017. Filed under Breaking News,Featured,NASCAR. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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