Stewart-Haas Racing sues Danica Patrick’s sponsor for $31 million

Stewart-Haas Racing filed a lawsuit against Nature’s Bakery, the sponsor of Danica Patrick’s team, for “material breach of its contract” related to missed payments Nature’s Bakery failed to make to the NASCAR organization co-owned by Tony Stewart and Gene Haas.

The Associated Press first reported the lawsuit filed in North Carolina Superior Court.

According to the AP, SHR’s lawsuit alleges Nature’s Bakery had cash flow problems just after signing the original three-year deal with the team in July 2015, which began with the 2016 Cup Series season, and attempted to restructure the deal — as early as January 2016. SHR is suing for $31.7 million, which includes more than $15 million owed for the 2017 and 2018 seasons, plus interest.

The suit states Nature’s Bakery sent SHR a letter on Jan. 19 terminating the sponsorship agreement, and that the company also missed deadlines to pay the past due amount. Nature’s Bakery was to serve as Patrick’s primary sponsor in 20 to 25 races this season, a decrease from 27 races in 2016.

SHR alleges Nature’s Bakery created “a scheme to avoid further payments” by claiming Patrick had endorsed competing products on social media and did not use her social media accounts to promote Nature’s Bakery sufficiently. SHR refutes this claim stating Nature’s Bakery never took issue with Patrick’s social media activity before the company experienced a financial shortfall, and as part of SHR’s lawsuit it submitted photos into evidence showing Nature’s Bakery had “liked” several of Patrick’s posts, which included several homemade meals, snacks, and smoothies in addition to a protein powder manufactured by Six Star Pro Nutrition.

“Nature’s Bakery is in material breach of its contract with Stewart-Haas Racing,” the team said in a statement to SB Nation. “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.”

Nature’s Bakery has not responded to repeated requests for comment.

A family-owned company that makes fig bars and promotes healthy living, Nature’s Bakery has fewer than 500 employees, and according to officials with the Nevada-based company, it had sales in excess of $100 million in 2014. The Nevada-based company is among the smallest to be a primary sponsor for an upper-echelon NASCAR organization.

Although Patrick is among the most recognizable drivers in the world, her on-track success hasn’t matched her celebrity. She has six top-10 finishes in 154 premier division starts, with a best result of sixth. The 34-year-old is the only woman to win a Cup Series pole, having captured the pole for the 2013 Daytona 500 as a rookie.

Patrick is slated to be sponsored by Aspen Dental (four races), TaxAct (three) and Code 3 Associates (three) for the balance of the 2017 season. Along with finding a replacement for Nature’s Bakery, SHR is also seeking additional funding for Patrick’s teammate, Clint Bowyer, who is without primary sponsorship for a majority of races.

SHR also fields teams for Kevin Harvick and Kurt Busch, both of whom have secured sponsorships in place.

The 2017 season begins with the Daytona 500 on Feb. 26.