Almost a year after Farmers Insurance announced it would cease sponsoring Kasey Kahne following the 2017 season, a report by ESPN reveals that Farmers Insurance paid Hendrick Motorsports roughly $666,000 a race to sponsor the No. 5 Chevrolet in 2017.
ESPN’s report is based on documents in a lawsuit filed by Sports Marketing Consultants related to “a dispute on the percentage of commissions owed on the deal” between Farmers Insurance and Hendrick Motorsports.
Farmers Insurance, which has sponsored Kahne for six seasons, was the primary sponsor on the No. 5 car in 12 races from 2015-17. There are three races left on the 2017 deal.
Farmers was on the No. 5 when Kahne won the Brickyard 400 in July.
Great Clips announced it would also cease sponsoring Kahne in May. A few weeks after the Brickyard win, Kahne’s only victory since 2014, Hendrick announced he would not be back in the No. 5 next season.
Farmers’ initial contract ran from 2012-14, when it sponsored the No. 5 for 22 races each season. Farmers paid Hendrick $13.5 million in 2012, $14.04 million in 2013 and $16.348 million in 2014, according to the ESPN report.
With the decrease to 12 races a year beginning in 2015, the company paid $7.6 million that season, $7.8 million in 2016 and $8 million this season.
The report also describes various performances bonuses for Hendrick in the initial three-year deal, such as winning a race ($450,000-$550,000) and the Cup championship ($1,157,895).
Read the ESPN story for more details on the contracts.