The high-stakes antitrust trial against NASCAR entered its fourth day on Thursday, with team owner Bob Jenkins returning to the stand to deliver damning testimony about the financial realities of competing in America's premier stock car racing series.
'Insulting' Offer and a $100 Million Loss
Bob Jenkins, the owner of Front Row Motorsports and a fast-food franchiser who fulfilled a lifelong dream by entering NASCAR, told the court he has lost a staggering $100 million since becoming a team owner in the early 2000s. This figure stands despite a landmark victory at the Daytona 500 in 2001.
His testimony centred on a controversial charter system, introduced in 2016, which guarantees teams a spot in all 38 races and a share of revenue. Jenkins received two charters for free when the system launched but described the subsequent agreements as "lousy." The situation reached a crisis point during negotiations for new terms, which began this year after more than two years of discussions.
Jenkins described being presented with NASCAR's final offer at 6 p.m. on a Friday last year, with just six hours to sign the complex 112-page document. He refused, calling the deal "insulting" and claiming it moved "virtually backward in so many ways."
A 'Take-It-or-Leave-It' Ultimatum and Reluctant Signatures
"It was insulting, it went so far backward," Jenkins testified. "NASCAR wanted to run the governance with an iron fist, it was like taxation without representation." He believed the governing body knew teams were trapped, stating, "Some of these owners have $500-$600 million facilities, long-term sponsors. They couldn’t walk away from that."
He revealed that legendary team owner Joe Gibbs personally apologised for signing the deal, and that most owners signed reluctantly. "Not a single owner said, ‘I was happy to sign it.’ Not a single one," Jenkins told the jury. He summarised the sentiment by saying, "100% of the owners think the charter system is good. The charter agreement is not."
Ultimately, only Front Row Motorsports and 23XI Racing—owned by Michael Jordan and Denny Hamlin—refused to sign, leading to the federal lawsuit that accuses NASCAR of monopolistic practices.
An Unsustainable Financial Model
The trial has laid bare the severe financial pressures on teams. While the new charter agreement increased guaranteed revenue per car to $12.5 million annually from $9 million, Jenkins and Hamlin testified it costs $20 million to run a single car for a season—a figure that excludes overhead, operational costs, and driver salaries.
Jenkins forcefully rejected any suggestion of mismanagement, testifying, "It’s offensive to say I’ve overspent. We have a model that works for us. I have never turned a profit. And it’s not from malpractice. The level we compete at is just so expensive."
This testimony was supported by NASCAR's own executive, Scott Prime, who stated a study found the sport's longevity was at risk without action to improve team health. He noted teams lost a combined $85 million in 2014, averaging $1.3 million per car.
The Stakes of the Trial
The plaintiffs' attorney, Jeffrey Kessler, informed the jury that over a three-year period, almost $400 million was paid to the France Family Trust, which owns NASCAR. A 2023 Goldman Sachs valuation placed NASCAR's worth at $5 billion, with pretrial discovery revealing the series made over $100 million in 2024 alone.
NASCAR defends its position, arguing it has not restrained trade and that the original free charters created $1.5 billion in equity for teams. The trial, expected to last two weeks, will feature further testimony from high-profile figures including Michael Jordan, Rick Hendrick, and Roger Penske. Its outcome could fundamentally rework the financial and governance framework of the sport founded by the France family in 1948.
