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Report: Lawsuit reveals Farmers Insurance paid $666,000 a race to sponsor Kasey Kahne

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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.

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Report: Farmers Insurance to end sponsorship of Kasey Kahne’s No. 5 Chevy after 2017

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Farmers Insurance will end sponsorship of Kasey Kahne’s Sprint Cup car after the 2017 season, according to a report Thursday by Sports Business Daily.

According to SBD’s Adam Stern, “Farmers Insurance and Hendrick Motorsports have both confirmed that the L.A.-based insurer will not renew its primary sponsorship of the NASCAR team’s No. 5 Sprint Cup Chevrolet after its deal expires following the ’17 season.”

Farmers spokesman Trent Frager confirmed the move in a statement to SBD:

“We have enjoyed the relationship with Hendrick Motorsports and the No. 5 team since our sponsorship began in 2011. We have made a strategic decision to focus on other brand activities, and our sponsorship will conclude at the end of the 2017 season.”

Hendrick Motorsports vice president of marketing Patrick Perkins gave this statement to NASCAR Talk:

“It’s been a privilege to help grow the Farmers Insurance brand on a national scale, and we look forward to continuing our collaboration next season. Our entire team is committed to the success of the program and making 2017 another impactful year. We’ve truly appreciated our relationship and the many friendships that will continue long into the future.”

While Farmers will be leaving, Hendrick Motorsports has recently renewed or added sponsorship for the No. 5 going forward from Great Clips (through 2018) and UniFirst (through 2023).

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