In the months leading up to Michael Jordan’s lawsuit against NASCAR, tensions were escalating. Many Cup Series team owners confessed to massive financial struggles due to the Next-Gen car and the charter system. They spoke collectively as part of the Race Team Alliance, and included even Rick Hendrick. However, things changed following the new charter deal in October 2024. Now, one team owner testified to jaw-dropping economic challenges.

NASCAR lawsuit reveals bitter truth

Journalist Adam Stern wrote on X, “Asked about @NASCAR’s phrasing that it originally gave charters out for free in 2016, @Team_FRM owner Bob Jenkins said it was “a little hard to swallow when I heard that,” because he says that he lost $8.5 million in the two prior years during which time FRM qualified for them.”

On the third day of the NASCAR lawsuit’s trial, Front Row Motorsports owner Bob Jenkins felt ‘offended’ by the sanctioning body’s defense. NASCAR’s attorney claimed that the Cup Series teams overspend and thereby lose money, and Jenkins was concerned about that as well. When FRM first appeared in the Cup Series in 2004, it failed to qualify for races. Stanton Barrett finally cut the following season at Bristol Motor Speedway in the No. 92 Chevrolet. However, Jenkins claimed that the team did not profit in the first ten years, as well as since the charters have come into existence.

Journalist Jeff Gluck wrote about Bob Jenkins’ testimony in the NASCAR lawsuit. “Front Row Motorsports owner Bob Jenkins is testifying now. He has revealed some numbers: — Front Row loses $6.8 million per year — He has never made a profit, nor has he even taken a salary from FRM — He had nine unsponsored races this year where he ran his own companies on the car to avoid a blank car — Pre Next Gen he spent $1.8 million per year on parts; with Next Gen he spends $4.7 million a year on parts. It costs $30k to repair a non-wrecked car each week because the nose and tail must be sent back regardless to the vendor and teams cannot repair it themselves.”

These jaw-dropping figures may deliver a sharp blow to sport’s defense in the ongoing NASCAR lawsuit. Even Denny Hamlin, co-owner of 23XI Racing, testified on Tuesday that he spent more than $700,000 on the series in 2022 alone. Besides these financial revelations, the monopolistic side of NASCAR was also portrayed.

Uncovering the new deal’s conditions

The prime basis of the NASCAR lawsuit has been the charter system. And especially the new charter deal signed in October 2024, and the circumstances under which it was signed. NASCAR strategy chief Scott Prime was on the stand, and he referred to a 2024 email depicting four demands of race teams. They said that they may need to explore other options if NASCAR does not agree to those demands. This heightened concerns of a breakaway stock car series. And NASCAR had some solutions, like reducing the number of charters or presenting a take-it-or-leave-it clause.

Then-NASCAR President Steve Phelps projected his opinion in an email. “You accurately reflected our options. They are playing with fire. Lots of options, but all have the same theme: Pick a date and they can sign or lose their charters. It is that simple.” And Jeffrey Kessler, 23XI and FRM’s attorney, stated on this email: “Only a monopolist could say this. Only a monopolist has the power to say, ‘Take my offer and if you don’t take it, you will no longer be in this business, and someone else will take your place.'”

Clearly, the NASCAR lawsuit is getting raw to the bone with each passing day of trial. Let’s wait and see how it climaxes in the end.