23XI Racing antitrust lawsuit has taken a major step forward, as racing legends Rick Hendrick and Roger Penske have been called to testify in court at the request of 23XI Racing and Front Row Motorsports (FRM), escalating tensions in the ongoing legal battle over NASCAR’s revenue distribution system. The dispute revolves around accusations that NASCAR’s current media rights and compensation model leaves teams like 23XI Racing and FRM struggling financially, putting the future of the sport’s business model at stake.
High-Profile Team Owners Face Court Testimony
The lawsuit, filed by 23XI Racing and FRM, directly challenges NASCAR’s $7.7 billion media rights agreement, arguing that the revenue split is fundamentally unfair and insufficient for the teams. The case intensified after Jeff Gluck of The Athletic revealed that Rick Hendrick and Roger Penske, two influential team owners who had initially shown reluctance to testify, are now set for deposition due to their public support of NASCAR and recent declarations backing the organization.
As part of the discovery process, confidential financial records from FRM boss Bob Jenkins surfaced, disclosing that his teams have lost over $100 million over time, helping fuel claims that the business model disadvantages many teams. Also revealed were internal NASCAR communications described as “take-it-or-leave-it” in their approach to negotiation, deepening suspicions of anti-competitive behavior within the organization.
The Charter System and Financial Challenges Under Scrutiny
The focus of the case extends to the charter system and overall financial health of racing operations. The Team Negotiation Committee’s work, involving HMS executive Jeff Gordon, came under fire from 23XI Racing and FRM, spotlighting the lack of profitability for even historically successful teams. The teams stated,
“Mr. Gordon has stated publicly that, despite being one of the most successful and longest-running Cup Series teams, Hendrick Motorsports has not made a profit in ten years. Plaintiffs are entitled to question Mr. Hendrick about those statements and the facts about Hendrick’s financial condition and profitability under the charter system that Mr. Hendrick discusses in his declaration, as they bear directly on whether NASCAR has exercised its monopoly power to pay the racing teams, including Mr. Hendrick’s team, below-competitive-market compensation.”
— Plaintiffs
This line of questioning aims to demonstrate that even prominent teams like Hendrick Motorsports are hurt by the existing payment structure, bolstering allegations of monopolistic practices and below-market payouts by NASCAR.
Court Rulings and Partial Dismissal Efforts
Recent developments in the courtroom favored 23XI Racing and FRM, with the court siding with their summary motion to define NASCAR’s market for legal scrutiny. Furthermore, the plaintiffs are pursuing a partial dismissal in their antitrust case against the International Speedway Corporation (ISC), a move clarified by Fox analyst Bob Pockrass as a strategic narrowing of focus for trial purposes. As Pockrass explained,
“Think of it this way: Section 1 more would cover NASCAR and ISC working together to monopolize a market. Section 2 covers one company’s unilateral acts. That has always been strongest part of case so better to focus on that at trial (2/2),” Pockrass wrote.
— Bob Pockrass, Fox analyst
This pivot suggests the plaintiffs see more legal strength in focusing on alleged anti-competitive actions attributed to a single company, rather than broader collusion claims, as the case heads to trial.
Awaiting the December 1 Trial Amid Uncertain Outcomes
With no settlement reached, the lawsuit is due to proceed to trial on December 1, presided over by Judge Kenneth Bell. Both 23XI Racing and FRM remain at odds with NASCAR, with Judge Bell warning that a jury trial carries risks for all sides. The implications for NASCAR’s charter system are profound—if the plaintiffs prevail, substantial changes to how teams are compensated and how charters are managed could follow. On the other hand, the teams could risk losing their charters entirely in the fight for a better financial arrangement.
Currently, teams such as 23XI Racing and FRM continue to compete as open teams, with NASCAR having agreed not to sell any charters until the case reaches its conclusion. This hold provides temporary security for the teams but leaves the broader landscape of NASCAR’s business model unsettled until the legal dispute is resolved.
The 23XI Racing antitrust lawsuit shines a light on longstanding grievances over NASCAR’s revenue model, prompting high-stakes testimony and legal challenges that could reshape the sport’s future. Key figures—including Rick Hendrick, Roger Penske, Jeff Gordon, Bob Jenkins, and Bob Pockrass—remain central to a trial that could redefine the relationship between racing’s governing body and its teams.
