NASCAR News: Antitrust Lawsuit Trial Update: Days 4 and 5

The NASCAR antitrust trial pitting 23XI Racing (co-owned by Michael Jordan and Denny Hamlin) and Front Row Motorsports against NASCAR continued in U.S. District Court in Charlotte, North Carolina, before Judge Kenneth D. Bell.

–by Mark Cipolloni–

The plaintiffs allege NASCAR’s monopolistic control—via unfavorable charters, track exclusivity, and revenue suppression—violates the Sherman Antitrust Act, seeking $145 million in damages and permanent charters.

NASCAR counters that its practices foster competition and sport growth. Recent article reviews reveal deeper insights into witness testimonies, including explicit threats to teams, financial admissions, and competitive fears, sharpening the narrative of coercion and monopoly power. The two-week trial featured raw accounts from insiders, with the judge again urging efficiency.

Thursday, December 4 (Day 4): Jenkins Wraps Up; O’Donnell Defends Amid Monopoly Scrutiny

Focus remained on the chaotic 2025 charter talks, with Front Row owner Bob Jenkins concluding and NASCAR President Steve O’Donnell taking the stand for hours.

– Bob Jenkins’ Cross-Examination and Redirect: The fast-food magnate and Front Row owner since the 2000s detailed his $100 million personal investment losses, despite a 2021 Daytona 500 triumph. He slammed the Friday 6 p.m. drop of the 112-page charter as “insulting,” regressive on revenue and lacking permanence. NASCAR’s cross by Christopher Buterman pressed on a $20 million cost-per-car survey not fitting Front Row and Jenkins’ own hardball in merger talks, plus sponsorship perks like free Long John Silver’s deals. Jury vibes leaned empathetic toward Jenkins’ underdog story.

– Steve O’Donnell’s Direct Testimony: The 29-year NASCAR vet, elevated to president in 2025, portrayed charters as collaborative, despite the ultimatum. New details from testimony highlight contingency plans briefed to the board (including co-defendant Chairman Jim France), like Speedway Motorsports exclusivity to bar rivals at tracks. O’Donnell addressed 2022-2023 leaked texts blasting the SRX Series (Tony Stewart’s short-track venture drawing stars like Hamlin and Chase Elliott) as “looking more and more like NASCAR,” despite Stewart’s assurances otherwise; NASCAR denied SRX hosting at SMI tracks to safeguard TV revenue.

He tied this to broader threats, non-compete clauses harming lower-tier series, and governance shifts: stripping teams’ “three-strikes” veto on costs (admitting it enabled the Mexico City race, which teams would’ve rejected, securing a $1 billion Amazon deal alongside Chicago). Financials included NASCAR’s $55 million Chicago street race loss over three years and $6 million Mexico City hit in year one—plus added team costs there—framed as growth investments, not monopoly shields. O’Donnell stressed: “We were able to get 1 billion because we had the Chicago Street Race and Mexico City.”

The day amplified charter coercion claims, with 13 of 15 Cup teams signing under duress, per plaintiffs.

Friday, December 5 (Day 5): O’Donnell Concludes; Emotional Peaks from Gibbs and Jordan

Morning wrapped O’Donnell before pivoting to plaintiffs’ star witnesses, exposing raw pressures on teams.

– Steve O’Donnell’s Conclusion: Plaintiffs’ attorney Jeffrey Kessler grilled on rival threats and veto stripping, with O’Donnell defending as stability measures amid SRX panic—NASCAR’s legal review of Hamlin’s participation underscored rule tensions.

– Heather Gibbs’ Testimony: Joe Gibbs Racing’s executive VP (and Joe Gibbs’ daughter-in-law) vividly recounted the six-hour signing frenzy for the 2025 deal. New revelations: O’Donnell warned JGR president Dave Alpern of losing all four charters if unsigned, framing it as an existential threat—”everything is gone,” including the family’s 30-year legacy. Gibbs testified Joe Gibbs “pleaded” with France for talks, but got a wall; she called it “holding a gun to the head,” forcing the sign despite “devastating” non-permanence. This bolsters coercion claims, echoing Jordan’s “not fair” critique and need for compromise.

– Michael Jordan’s Direct Testimony: The NBA icon’s hour captivated, blending passion and pointed jabs. A North Carolina native hooked on racing young, Jordan launched 23XI in 2020 with Hamlin, forgoing $120 million+ in charters to litigate. New depth: He signed a third charter strategically post-Stewart-Haas closure (for race guarantees and transfers), but the June injunction reversal hit hard—forcing open-team status, weekly quals, and lost revenue shares, ballooning losses. Jordan blasted the model as untenable, pushing for ~45% TV revenue share (vs. basketball parity), crediting on-track risks over execs “sitting in Florida.” Targeting France: “I never saw Jim France drive a car or risk his life… Give a little more credit to those who put their life on the line.” His “win-at-all-costs” ethos—likening to NBA antitrust pushes—framed the suit as a market fix: “Teams deserve fair treatment… I’m willing to fight for a competitive market where everyone wins.” Cross-examination loomed.

Adjournment set up next-week heavyweights like Rick Hendrick and Roger Penske. No settlement buzz, but these disclosures—on threats, vetoes, and SRX fears—intensify monopoly scrutiny (Bell’s prior ruling). Verdict could redefine charters or doom plaintiffs’ operations.