Stewart-Haas Racing files suit against sponsor of Danica Patrick’s team

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Stewart-Haas Racing filed a breach of contract lawsuit against Nature’s Bakery, the sponsor of Danica Patrick‘s team, Friday in North Carolina Superior Court.

The Associated Press first reported the suit.

Stewart-Haas Racing seeks $31.7 million in actual damages, plus interest. Nature’s Bakery was to pay $30.4 million of base fees for the remaining two years of the contract, along with another $1 million in other fees.

Stewart-Haas Racing stated in the lawsuit that the actions of Nature’s Bakery “set SHR up for a devastating loss of revenue just before the beginning of the 2017 race season; and rendered it nearly impossible for SHR to have any reasonable hope of mitigating its damages.”

Stewart-Haas Racing issued a statement Friday night:

“Nature’s Bakery is in material breach of its contract with Stewart-Haas Racing. It is an unfortunate situation, as the team has delivered on all aspects of its contract and was prepared to do so again in 2017. Ultimately, this is a situation that will be resolved in a court of law.

“Stewart-Haas Racing remains focused on its preparation for the 2017 NASCAR season where it will again field four entries in the Monster Energy NASCAR Cup Series while also introducing a full-time NASCAR Xfinity Series team. The litigation with Nature’s Bakery will not impact the organization’s on-track efforts.”

Stewart-Haas Racing stated in the complaint that “this is an action to recover substantial damages from the Defendants’ unfair trade practices and associated intentional and bad faith breaches of a multi-year primary sponsorship agreement associated with the #10 SHR race team.”

Stewart-Haas Racing stated in the complaint that after Nature’s Bakery expressed interest in 2015 in sponsoring Patrick’s team, the organization “expressed significant concern that Nature’s Bakery would be unable to afford a primary sponsorship of the magnitude it requested. Mr. (David) Marson, for himself, and the Marsons, for the Marson Trust, and Nature’s Bakery, provided repeated assurances that Nature’s Bakery had the cash flow and funds to meet all financial requirements of the proposed sponsorship agreement.”

The suit states that for the 2016 season, Nature’s Bakery was to pay $15,212,000 to sponsor the team. It was to pay the team $5 million on or before Oct. 1, 2015; $3,404,000 on or before Feb. 1, 2016; $3,404,000 on or before May 1, 2016; and $3,404,000 on or before July 1, 2016.

For 2017, Nature’s Bakery was to pay $15,212,000 to sponsor the team with the same type of payment schedule.

For 2018, Nature’s Bakery was to pay $15,212,000 to sponsor the team with the same type of payment schedule.

The complaint states with the contract set, Stewart-Haas Racing moved forward on other matters, including signing Patrick to a multi-year agreement that goes through the 2018 season.

The complaint states that “soon after executing the Sponsorship Agreement, Mr. Marson and Joe Marshall (Nature’s Bakery Chief Financial Officer) reached out to SHR executives, and stated that Nature’s Bakery was having cash flow issues, and asked if the payment amounts and deadlines in the Sponsorship Agreement could be modified to assist Nature’s Bakery with its cash crunch.”

Stewart-Haas Racing changed the payment schedule for 2016 for Nature’s Bakery to pay $2.5 million on or before Oct. 1, 2015;  $1 million on or before the 15th of each month from January to May 2016; and $1.928 million on or before the 15th of each month from June to September.

For 2017, the payment schedule was adjusted to $2.5 million on or before Oct. 1, 2016; $2.5 million on or before Dec. 1, 2016; and $3.4 million on or before the first day of February, May and July 2017.

Among the many extra benefits Stewart-Haas Racing provided Nature’s Bakery, according to the lawsuit, were two additional races free in 2016 when both Patrick’s car and the No. 14 car of Tony Stewart had Nature’s Bakery as a primary sponsor at the Dover race in October. The team also stated in the lawsuit that Stewart-Haas Racing helped Nature’s Bakery avoid track fees for activation access and “upon learning of the mold outbreak in Defendants’ product, SHR worked to open and dispose of many samples of Nature’s Bakery products that contained heavy mold, to avoid fans from receiving tainted product (and the resulting reputational issues that would surely follow).”

Stewart-Haas Racing states that Nature’s Bakery reached out to the team in late summer 2016 to modify the base fee payment terms, “representing that modification was again necessary due to Nature’s Bakery’s internal cash flow issues.”

The payment schedule was again changed. Nature’s Bakery was to pay Stewart-Haas Racing $1 million on before the 15th of each month from January to March 2017 and $2,042,400 on or before the 15th of each month from April to August 2017 and $1 million on or before the 15th of September and October 2017. The 2018 payment schedule also was adjusted.

Stewart-Haas Racing accused Nature’s Bakery of concocting “a scheme to avoid further payments” by claiming that Patrick had endorsed competing products and did not use her social media presence enough to promote Nature’s Bakery. Stewart-Haas Racing states in the complaint that “these claims are false.”

Stewart-Haas Racing states that “the thrust of Nature’s Bakery’s complaints about Danica Patrick supposedly endorsing competing products is her personal endorsement of Six Star Pro Nutrition’s protein powder. Protein powder is not competitive with fig bars or brownies. Furthermore, Danica Patrick had been endorsing Six Star Pro Nutrition’s protein powder, publicly, for many months prior to the execution of (the) Sponsorship Agreement, and continued to do so afterwards.

“Never once did Defendants claim that her doing so amounted to a breach of the Sponsorship Agreement (nor could it, because, again, the protein powder is not a competing product).  … Danica Patrick never endorsed Six Star Pro Nutrition’s protein bars. Worse, Nature’s Bakery “liked” numerous of Danica Patrick’s Instagram posts regarding Six Star Pro Nutrition and other protein powders. Clearly, even Nature’s Bakery did not consider Danica Patrick to be endorsing a competing product, until it decided to drum up reasons to terminate the Agreement.”

The suit says Nature’s Bakery sent a letter to Stewart-Haas Racing on Jan. 19 seeking its desire to terminate the sponsorship agreement.

Stewart-Haas Racing stated in the lawsuit: “In every respect, SHR complied with its obligations under the Sponsorship Agreement.

“In every respect, Defendants materially breached their obligations under the Sponsorship Agreement, and did so using unfair, deceptive, manipulative and bad faith tactics.

“Left with no options to protect its rights and interests, SHR files this action seeking to recover all amounts due pursuant to the Sponsorship Agreement, plus interest, and all other damages.”

Nature’s Bakery served as the primary sponsor on Patrick’s car for 27 points races last year along with what was called the Sprint Unlimited and the Sprint All-Star Race. Nature’s Bakery was to have served as the primary sponsor of Patrick’s team for a minimum 25 races this season, according to the lawsuit.

Patrick appeared at last week’s NASCAR Media Tour in her TaxAct uniform instead of a Nature’s Bakery uniform, raising questions about the company’s primary sponsorship of her team.

The Nature’s Bakery website does not contain references to Patrick, Stewart-Haas Racing or NASCAR.

Messages to representatives of Nature’s Bakery about this matter have yet to be returned.

Click here to view the lawsuit

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NASCAR viewer’s guide for Charlotte Roval

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Sunday provides a final chance for drivers to advance to the Round of 8 and keep their Cup championship hopes alive.

Talladega winner Chase Elliott is the only driver who has advanced to the next round. That leaves seven spots available going into Sunday’s race at the Charlotte Roval (2 p.m. ET on NBC).

Chase Briscoe holds the final transfer spot by a tiebreaker over Austin Cindric. At least for now.

William Byron is 11 points behind both drivers, but Hendrick Motorsports will appeal Byron’s 25-point penalty from Texas on Thursday. Should Hendrick win and Byron get those points back, he would move into a transfer spot.

There’s just part of what to watch for in Sunday’s race.

Favorites to be No. 20

This season remains tied for the most different winners in series history at 19, but there are a few candidates who could become the 20th different winner this year on Sunday.

Among the favorites to do so:

Ryan Blaney, who came close to winning last week at Talladega, won the inaugural Cup race at the Roval in 2018.

Martin Truex Jr., who has four career Cup wins on road courses, still seeks his first victory of the season.

Michael McDowell, who is coming off a third-place finish at Talladega, has had a career-high 12 top-10 finishes this season, including top 10s in each of the last four road course events this year.

Will history repeat?

Last year, the four drivers eliminated after the Roval were Kevin Harvick, Alex Bowman, Christopher Bell and William Byron.

Harvick was eliminated in the first round this year, but Byron (-11 to the cutline) and Bell (-33) are in jeopardy of being eliminated in this round again. Bowman stated Tuesday that he will miss his second consecutive race because of continued concussion symptoms. He will be among the four eliminated from title contention.

Bowman missed last weekend’s race because of concussion-like symptoms suffered at Texas. A decision on if he’ll be able to race at the Roval will come later this week.

Will chaos continue?

Consider what some of the former Roval winners have endured on their way to the checkered flag:

In 2019, Chase Elliott drove into the Turn 1 wall on a restart while the leader. He recovered to win.

In 2020, Elliott overcame a loose wheel to win for the second year in a row.

In 2021, Kyle Larson won after his team changed batteries and put the alternator belt back on.

Could a similar fate be in store for this year’s winner? Or will they have a cleaner day?

Entry lists

Thirty-nine drivers are entered including IndyCar driver Conor Daly, former Formula 1 driver Daniil Kvyat, former 24 Hours of Le Mans winner Mike Rockenfeller and former 24 Hours of Daytona winner Joey Hand. JJ Yeley will drive the No. 51 for Cody Ware, who stated that he would skip this event because of his ankle injury at Texas the footwork needed on a road course.

Charlotte Roval Cup entry list

The Xfinity entry list includes 41 drivers for 38 spots. Among those joining the series regulars are IndyCar driver Marco Andretti and former F1 driver Daniil Kvyat.

Charlotte Roval Xfinity entry list

This week’s schedule and forecast

(All times Eastern)

Saturday, Oct. 8

Forecast: Partly cloudy with a high of 66 degrees. No chance of rain during the Xfinity race.

  • 10 – 10:30 a.m. — Xfinity practice (NBC Sports App)
  • 10:30 – 11:30 a.m. — Xfinity qualifying (NBC Sports App)
  • 12 – 1 p.m. — Cup practice (NBC Sports App, USA Network coverage begins at 12:30 p.m.)
  • 1 – 2 p.m. — Cup qualifying (USA Network, NBC Sports App)
  • 3 p.m. — Xfinity race (67 laps, 155.44 miles; NBC, Peacock, Performance Racing Network, SiriusXM NASCAR Radio)

Sunday, Oct. 9

Forecast: Sunny with a high of 64 degrees. No chance of rain during the race.

  • 2 p.m. — Cup race (109 laps, 252.88 miles; NBC, Performance Racing Network, SiriusXM NASCAR Radio)

 

Hailie Deegan to make Xfinity debut at Las Vegas

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Hailie Deegan announced Tuesday that she will make her Xfinity Series debut Oct. 15 Las Vegas Motor Speedway on NBC and Peacock.

The 21-year-old Deegan is in her second full-time season in the Camping World Truck Series. She finished a career-high sixth in that series last weekend at Talladega Superspeedway.

She will drive the No. 07 car for SS Green Light Racing with Jeff Lefcourt.

 

 

Alex Bowman to miss Charlotte Roval race

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Alex Bowman announced Tuesday night on social media that he will sit out this weekend’s Cup playoff race at the Charlotte Roval.

Bowman said on social media: “I am continuing to make strides in my recovery to make sure I can return to competition at 100%.”

This will be the second consecutive race he will have missed because of concussion-like symptoms after his crash at Texas Motor Speedway.

Noah Gragson will drive the No. 48 car this weekend for Bowman.

“Alex’s health is our first priority,” said Jeff Andrews, president and general manager of Hendrick Motorsports, in a statement. “We’re focused on supporting his recovery and seeing him back in his race car when the time is right. Alex has a long career ahead of him, so we will invest the necessary time and take our guidance from medical experts. We’re putting no pressure on him to return before he’s 100% ready.”

Bowman will be one of the four drivers eliminated from title contention Sunday.

Also Tuesday, Cody Ware announced that he will sit out this weekend’s Cup race at the Charlotte Roval, as he continues to recover from the ankle injury he suffered at Texas.

NASCAR Power Rankings: Chase Elliott leaps to the front

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A slick late-race move by Chase Elliott carried him to Victory Lane Sunday at Talladega Superspeedway — and back to the top of the NBC Sports NASCAR Power Rankings.

Elliott is the only driver with five victories this season. No one else in the playoffs has more than two (Tyler Reddick, eliminated from the championship hunt, has won three times).

Elliott, already qualified for the Round of 8 with his Talladega win, will be among the favorites in Sunday’s race at the Charlotte Motor Speedway Roval (2 p.m. ET, NBC).

Here’s how the rankings look approaching the end of the Round of 12:

NBC Sports NASCAR Power Rankings

1. Chase Elliott (No. 3 last week) — Elliott’s power move to win at Talladega was quite impressive and gave him four top-five finishes in the past 10 races. Clearly, he has re-established himself as the championship favorite.

2. Denny Hamlin (No. 1 last week) — Hamlin drops a spot despite a strong run (20 laps led and finishing fifth) at Talladega. Count him in the hunt for an elusive first championship.

3. Ryan Blaney (No. 8 last week) — Blaney simply will not go away despite continuing as the playoffs’ only winless driver (not including the Texas All-Star Race). He was victimized by Chase Elliott on Sunday at Talladega, finishing .046 seconds short of victory and a push into the next round.

4. Kyle Larson (No. 2 last week) — Superspeedway racing generally is not Larson’s strong point. He finished 18th Sunday despite leading eight laps and being in the front group much of the day.

5. Joey Logano (No. 4 last week) — Logano had an unusually poor performance at Talladega. He was involved in an early-race accident and struggled much of the rest of the day, finishing 27th.

MORE: Elliott celebrates, Logano laments

6. Ross Chastain (No. 7 last week) — Chastain tied Aric Almirola for most laps led (36) at Talladega and has been consistent as of late with three finishes of seventh or better in the past four races.

7. William Byron (No. 5 last week) — Byron’s worst news last week came off the track as he was penalized by NASCAR for dumping Denny Hamlin under caution at Texas. He finished 12th at Talladega.

8. Chase Briscoe (No. 9 last week) — Briscoe is quietly making the case that he could make the Round of 8 and challenge for the title.

MORE: Winners and losers at Talladega

9. Daniel Suarez (unranked last week) — Suarez maneuvered through the Talladega draft with style and came home eighth. He has three top 10s in the past seven races.

10. Christopher Bell (No. 6 last week) — Bell had a rough day at Talladega and will be looking to Sunday’s race at the Roval for redemption.

Dropped out: Tyler Reddick (No. 10 last week).