Yahoo Autos NHRA Sues Coca-Cola for Missing Payment, Pulling Out of Sponsorship Deal
The NHRA is suing its sponsor Coca-Cola after Coke officials told the racing series that it was ending its sponsorship.
It's a sponsorship deal that the NHRA says was supposed to run through 2023.
In the lawsuit, NHRA claims that Coca-Cola missed a $2.86 million payment on May 15. The sponsorship deal is a six-year agreement with Coca-Cola that calls for Coca-Cola to pay the NHRA $5.72 million per year.
The lawsuit also alleges that "Coca-Cola has seized on global tragedy, the COVID-19 pandemic, as a pretext to claim a “breach” and “terminate” the sponsorship agreement early to save money. But neither the Agreement nor the law allows Coca-Cola to do so. This action seeks to hold Coca-Cola to its contractual promises."
