Home/NASCAR
Home/NASCAR
feature-image

via Imago

feature-image

via Imago

Just when everyone thought that NASCAR and the two teams, 23XI Racing and Front Row Motorsports, were ready to shake hands on the ongoing intense lawsuit, talks about reaching a settlement sliced through the legal chaos like a late-lap pass. The antitrust showdown could be approaching a finishing line, but not so soon. Five days before the ‘settlement’ hearing, the two teams dropped a bomb.

Watch What’s Trending Now!

On Wednesday, 23XI Racing and Front Row Motorsports disclosed explosive text messages in a court filing as part of their antitrust lawsuit against NASCAR. And thanks to FOX Sports’ Bob Pockrass, the messages, sent three years ago, have come to light. Turns out, NASCAR President Steve O’Donnell and Executive Vice President Ben Kennedy have some pretty big reasons for making the teams sign the refined charter system last year.

ADVERTISEMENT

Article continues below this ad

Steve O’Donnell’s texts reveal NASCAR’s must-win scenario

Believe it or not, the real reason behind the antitrust lawsuit is actually because of the deteriorating state of golf. The messages, shared between Steve O’Donnell and Ben Kennedy, revealed a sport on edge, looking nervously at golf’s appeal, where Saudi-backed LIV Golf lured top players away from the PGA Tour.

O’Donnell didn’t hold back. Sharing his thoughts about 23XI co-owner Curtis Polk, he said, “Curtis thinks we (NASCAR) are dumb hillbillies… I want to win, and I know you do as well. It is personal now — we are against a guy who doesn’t care one bit about this sport.” He laid out threats bare, from private equity players indifferent to short-term returns to international series run by teams themselves.

ADVERTISEMENT

Article continues below this ad

He painted a doomsday scenario of guaranteed multi-million dollar payouts tempting drivers away, calling it a real threat that could devastate NASCAR if ignored. O’Donnell spelled out the stakes bluntly: “I don’t ever want to see you in that position. We need to lock ourselves in a room and war-game this thing. Future of the sport is on the line and we need to assume — unfortunately — that 30 of 36 drivers will leave us and all owners will leave us… if we don’t want that to be the case, what should we do? And what do we really think is fair?”

Ben Kennedy’s replies struck a similarly strategic chord, but with a focus on opportunity. A scenario planning paired with revenue diversification. He wrote about broadening NASCAR horizons beyond broadcast deals into international markets, sports betting, and even NFTs, framing the challenge as both defensive and creative.

Read Top Stories First From EssentiallySports

Click here and check box next to EssentiallySports

“No one has the answers, but feels like we need someone constantly thinking about it,” Kennedy emphasized, underlining the need for a forward-looking mindset in a rapidly evolving sports landscape. The off-site O’Donnell suggested, gathering trusted executives to play out every possible scenario, was positioned as the first step in outsmarting potential deception.

ADVERTISEMENT

Article continues below this ad

And that is exactly when the charter system had a shake-up. The charter system, established in 2016, functions similarly to the franchise agreements and other professional sports, guaranteeing teams a starting position in each race and a share of the revenue, which generates $1.5 billion.

Last year, NASCAR presented a take-it-or-leave-it charter agreement to the teams with a tight deadline for signing. While 13 of 15 teams agreed to the new terms, 23XI Racing and Front Row Motorsports refused to sign, citing unfair terms and the lack of permanent charters. They argued that the system was monopolistic and restricted their ability to negotiate better financial terms.

Consequently, these two teams filed an antitrust lawsuit against NASCAR, alleging violations of competition laws. However, the internal texts reflect a deep concern over the potential for teams to break away and for competing series to disrupt the scene, just like the golf world experienced with the emergence of LIV Golf.

The text also revealed the NASCAR fight was not purely financial; it was deeply personal. This blend of business acumen and personal determination shows why the NASCAR antitrust lawsuit is not just about contracts or revenue streams; it is about protecting the soul of the sport. But with NASCAR recently pushing for a settlement and Steve O’Donnell refusing to take on the “monopoly accusations,” hoping to avoid the Dec 1 trial altogether, 23XI and FRM are fighting back.

23XI and FRM push for the December trial, disregarding the settlement agreement

In a twist this week, court filings revealed that the two teams aren’t seeing eye to eye with the idea of a judge-led settlement meeting. FOX Sports’ Bob Pockrass reported, “ Much of the motion appears to be written exclusively for the press, as counsel for NASCAR surely knows that the arguments they are presenting are not a basis for granting summary judgment. Stock car racing is a sport, but litigation is not. NASCAR’s tired retread of arguments this Court has repeatedly rejected should be disposed of quickly.”

Denny Hamlin and Michael Jordan’s 23XI Racing team’s filings underline the core of the team’s complaints. Firstly, they argued that NASCAR pays below-market rates to top-tier teams, which undermines the value of their charters. On top of that, teams lack the flexibility to race in other stock car events due to NASCAR agreements, and even tracks owned by the France family can’t host independent events. Together, these restrictions feed into the teams’ allegations of NASCAR’s monopolistic practices.

But with 13 of the other teams urging NASCAR and 23XI/FRM to mend fences as soon as possible, October 21 couldn’t come fast enough.

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT