**23XI Racing and FRM Call on Rick Hendrick and Roger Penske to Testify in Antitrust Lawsuit Against NASCAR**
23XI Racing and Front Row Motorsports (FRM) have recently taken a significant step in their ongoing antitrust lawsuit against NASCAR, calling upon industry heavyweights Rick Hendrick and Roger Penske to testify. The move comes amidst growing tension over revenue distribution from NASCAR’s massive $7.7 billion media rights deal.
**Breakdown of the Dispute**
At the heart of the lawsuit is the allegation by 23XI Racing and FRM that the current revenue split is unfair and leaves racing teams barely breaking even. In fact, financial records from FRM’s team owner Bob Jenkins, uncovered during the discovery process, reveal a staggering apparent loss of over $100 million across his NASCAR teams.
Further complicating the matter, internal communication from NASCAR has shown a “take-it-or-leave-it” approach during negotiations with the teams—fueling claims of inequity and monopolistic practices.
**Hendrick and Penske Reluctantly Drawn into Testimony**
To probe these concerns further, 23XI Racing and FRM have sought a deposition of Rick Hendrick and Roger Penske, two of the sport’s most influential team owners. Initially, both were reluctant to testify. However, their previous letters of declaration supporting NASCAR opened the door for questioning.
The plaintiffs argue that comments from Hendrick Motorsports executive Jeff Gordon are particularly relevant. Gordon has publicly stated that despite Hendrick Motorsports’ longstanding success, the team has not made a profit in the past ten years. Citing these statements, 23XI Racing and FRM assert the right to question Mr. Hendrick about his team’s financial condition and the overall profitability of race teams under NASCAR’s current charter system.
According to court filings, “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.”
**Legal Developments and Market Definition**
23XI Racing and FRM have seen progress in court, recently winning a summary motion that defined the parameters of NASCAR’s market—a key step in the antitrust proceedings.
In a related development, both teams have requested a partial dismissal of their antitrust claims that were specifically targeted at the International Speedway Corporation (ISC). Fox Sports analyst Bob Pockrass explained the legal strategy on X (formerly Twitter):
“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 the strongest part of the case so better to focus on that at trial.”
**What’s at Stake and What’s Next**
With no settlement in sight, the lawsuit between 23XI Racing, FRM, and NASCAR is set to proceed to trial on December 1. Judge Kenneth Bell, who is presiding over the case, has cautioned that a jury trial presents significant risks for both sides.
If NASCAR loses, its charter system could face a major overhaul, potentially reshaping the economic landscape of the sport. Conversely, if the teams lose, they risk forfeiting their charters in pursuit of more favorable payouts. For now, the teams will continue to compete as open teams as the legal battle unfolds. NASCAR has agreed to pause any sales of the teams’ charters until the lawsuit reaches its conclusion.
This high-stakes fight could redefine the business model of NASCAR and set precedents for team compensation in motorsports for years to come.
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