CHARLOTTE, N.C. — A federal judge’s warning that “everybody is going to get hurt” is already materializing as the antitrust lawsuit pitting two race teams against NASCAR unfolds in a Charlotte courtroom. Judge Kenneth D. Bell had repeatedly urged both parties to settle, cautioning that a trial would have no winners. With negotiations failing, the trial began this week, immediately exposing deep-seated animosity and financial turmoil within the sport.
The lawsuit, filed by 23XI Racing and Front Row Motorsports, alleges that NASCAR engaged in illegal monopolistic practices concerning its charter system, which guarantees teams entry into races.
In four hours of testimony, 23XI co-owner and top driver Denny Hamlin delivered a scathing critique of NASCAR’s leadership, particularly targeting CEO and Chairman Jim France. Hamlin accused NASCAR of being an illegal monopoly that treated teams unfairly. He claimed the sanctioning body presented a below-market-value charter agreement with an ultimatum: sign or forfeit charters worth millions of dollars. “We want to be made whole for what NASCAR did to us,” Hamlin stated. In response, NASCAR’s lawyers confronted Hamlin with his own prior public comments in support of the league.
The trial has also brought internal NASCAR communications to light. Emails entered into evidence revealed executives questioning France’s decision-making. In one message to a fellow executive concerning the teams’ resistance to the charter deal, NASCAR Commissioner Steve Phelps wrote, “They are playing with fire… Pick a date and they can sign or lose their charters. It is that simple.”
Further controversy emerged from unearthed text messages in which Phelps disparaged team owner Richard Childress, calling him a “stupid redneck who owes his entire fortune to NASCAR” and suggesting he should be “taken out back and flogged.” Childress, who is on the potential witness list, has said he is considering legal action.
The proceedings took another turn Wednesday when Front Row owner Bob Jenkins, known as one of the most respected figures in the sport, testified that his team has not been profitable in over two decades. As NASCAR’s attorneys questioned his finances, at least one juror appeared displeased, leaning forward and shaking his head. “I can assure you it’s not from malpractice,” said Jenkins. “We’re very frugal.”
Adding to the spectacle, jury selection was complicated by the presence of 23XI co-owner and NBA legend Michael Jordan. Several prospective jurors admitted they could not be impartial, with one winking at Jordan as he was dismissed.
This public battle could have been avoided through a settlement, but now both sides face severe consequences. If NASCAR prevails, the two teams, which have invested millions into their operations, would almost certainly be forced to close. A victory for the plaintiffs could be devastating for NASCAR, with potential damages up to $300 million. The league could also be forced to divest from its racetracks or even dismantle the entire charter system, fundamentally altering the structure of the sport. While the most extreme outcomes are unlikely, the ongoing trial is inflicting deep and likely permanent damage on NASCAR’s reputation, fulfilling the judge’s prescient warning.
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