Front Row Owner Testifies as NASCAR Exec Faces Court Scrutiny

Bassyonni

ago 43 minutes

Front Row Owner Testifies as NASCAR Exec Faces Court Scrutiny

The ongoing antitrust trial involving 23XI Racing, Front Row Motorsports (FRM), and NASCAR has reached a pivotal phase. The third day of witness testimony included insights from Scott Prime, NASCAR’s Executive Vice President and Chief Strategy Officer, and Bob Jenkins, the owner of FRM.

Testimony Highlights

Scott Prime took the stand on the second half of Tuesday and witnessed a contentious cross-examination. Attorney Jeffrey Kesseler explored the “goodwill provision” in NASCAR’s charter agreement, which restricts team owners from competing elsewhere without NASCAR’s consent. Prime insisted that this provision was fundamentally about goodwill, although Kesseler disputed this characterization.

Teams with a 10% ownership stake must comply with the goodwill provision.
If a team owner departs the Cup Series, they must wait 12 months before participating in other series.

NextGen Car Concerns

Issues surrounding the NextGen car’s intellectual property restrictions were also a focus. Kesseler argued that these limitations stifle competition. Prime, however, maintained that teams had no objections to these measures, emphasizing their support for the protections that came with the new car design.

Financial Struggles of Team Owners

Bob Jenkins, in his testimony, revealed the financial challenges he faces as the owner of FRM. He reported annual losses of $6.8 million and confirmed his lack of salary from team ownership. The costs associated with the NextGen model have surged to $4.7 million per year, contrasting sharply with the $1.8 million spent previously.

Weekly refurbishment costs for an undamaged car are approximately $30,000.
Jenkins attends about a dozen races per year and visits the shop 6-7 times annually.

The September 6 Deadline

During the trial, Jenkins recalled the intense emotions around NASCAR’s “take it or leave it” offer, delivered on September 6, 2024. This ultimatum prompted a frantic response among team owners, many of whom felt pressured to sign the new charter agreement.

Thirteen of the fifteen teams agreed to the contract by the deadline. However, Jenkins and 23XI Racing opted not to sign, leading to their lawsuit against NASCAR.

Criticism of NASCAR’s Governance

In his testimony, Jenkins described NASCAR’s approach as “taxation without representation.” He criticized the 2025 charter agreement as backward and insensitive to the needs of team owners. He emphasized the need for a fairer and more collaborative negotiation process.

Jenkins acknowledged the potential value of NASCAR teams if governance issues are resolved.
He drew attention to the disparity in the revenue split, where teams earn considerably less than they should based on their contributions.

The prosecution will continue to scrutinize Jenkins’ claims on financial practices and team governance in the coming sessions. This trial represents a significant moment for NASCAR and its relationship with team owners as the landscape of competitive racing evolves.