Soft Drink Brand Coca Cola has been sued by the NHRA (National Hot Rod Association). In the filed lawsuit, they have claimed that Coca Cola has missed a payment of around $2.86 million on May 15, 2020. It was a 6-year agreement that calls the soft drink giant to pay $5.72 million per year to NHRA.

As per the lawsuit, “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.”

Glen Cromwell, NHRA President posted on Monday a statement that outlines the missed payment and Coca-Cola’s decision to leave the NHRA.

Cromwell also added, “When the pandemic struck, our entire racing family focused on everyone’s health and safety. On the pro series side, we continued to work closely with our series sponsor, Coca-Cola, and their Mello Yello brand. Even though they decided to withhold payment from us during the pandemic, they worked with us and all systems were go for their sponsorship to continue, as contracted, through the end of 2023.

NHRA and Coca Cola have been partners since 2002.”