Teams’ case shapes up in Day 4 of NASCAR antitrust trial

CHARLOTTE, N.C. — The fourth day of the NASCAR antitrust trial saw 23XI Racing and Front Row Motorsports’ attorney Jeffrey Kessler shaping up how he could prove NASCAR used anticompetitive acts to maintain their monopoly that harmed the teams.

NASCAR President Steve O’Donnell took the stand and answered questions about exclusivity clauses NASCAR included in agreements with race tracks, including Speedway Motorsports-owned tracks.

O’Donnell said they removed the “three strikes” provision, which gave team owners veto power over cost increases, because they wanted to “grow the sport.”

To that last point, O’Donnell testified, NASCAR wanted to eliminate team owners’ veto power over cost increases in order to grow the sport. He added NASCAR wouldn’t have visited Mexico City in 2025 and Amazon Prime wouldn’t have paid the money they did if that provision was in place. He also said the Chicago Street Course would’ve been harder to get and Amazon may not have signed on to covering the sport at all without it.

O’Donnell also noted how they lost $55 million on the street race but that it was worth it to land Amazon. He also stated how they signed a five-year deal with SMI tracks to ensure there was guaranteed money for the charter system. He also added the exclusivity provisions expanded in 2016 to “establish a predictable revenue model.”

Kessler then brought up the Superstar Racing Experience, which O’Donnell acknowledged as a potential competitor of concern to NASCAR. They went over text messages discussing how SRX outrated NOAPS and Truck races at the time and SRX’s model of building their own cars for people — including many NASCAR stars — to race on tracks outside of the NASCAR realm.

Kessler then pointed out certain provisions of the NASCAR charter agreement that seemingly came up after O’Donnell raised concerns about SRX, such as a stricter clause restricting NASCAR Cup Series teams from other automobile series, as a way to build a case that NASCAR acted in a way that quashed competition to maintain their monopoly.

A jury will have the final say on that at the end of the trial.

Trial Tidbits

NASCAR’s attorney grilled Jenkins on testimony where he said he spent “$20 million per season to run a single Cup car,” citing FRM’s financial records sowing the most they spent was $14 million per car. Jenkins admitted to that, setting the record straight.

Jenkins said he received another proposed 2025 Charter agreement on Aug. 30, 2024 – a week before the Sept. 6 deadline.

Judge Kenneth D. Bell expressed concern with the pace of the trial and to be more disciplined in questioning witnesses. He even said he would step in to force the witness to answer questions, if needed.

After the teams stated they may not rest their case by Monday, which NASCAR stated is the only day team owner Roger Penske is available to testify in their defense. The teams haven’t agreed to let Penske testify in their case, prompting Bell to snap at NASCAR and get Penske in whenever can work best for their case.