NASCAR’s settlement with 23XI,FRM could be as high as $182.5M, claims antitrust expert

Antitrust experts have weighed in on the possible settlement terms between NASCAR and 23XI/FRM. While some figures estimate a 10-25 per cent payout of the original $365 million claim, a more liberal projection places the figure at 50 per cent, which comes down to $182.5 million.

As the antitrust trial neared its end, 23XI and FRM were in a much more favourable position compared to the sanctioning body. If the jury had sided with the two teams, the France family would've coughed up a huge sum in addition to court-mandated changes.

Moreover, both parties spent close to $50 million in attorney fees, adding further burden to the highly contentious case. When NASCAR settled with the teams, the new agreement guaranteed permanent charters and an increased revenue share in international media rights, among other perks.

In addition, an undisclosed amount was paid to both teams. Meegan Hollywood, an antitrust litigator of the Shinder, Cantor & Lerner law firm, believes the sanctioning body spent around 10-25%, but noted that the financial risk was worth the outcome.

“I suspect also that this particular settlement allowed them to have a little bit more control in the changes that they made to the charter system, because in addition to the sort of financial risk, NASCAR did run the risk of having court-mandated changes and then they sort of would have had to do that not on their own terms. This probably allowed them to make certain changes on their own terms and have some more internal control,” she said via Sports Business Journal.

The sanctioning body also reinstated the five-strike rule as part of the settlement. The provision provides teams with a way to oppose new directives if objections are raised five times.

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NASCAR issues statement after Denny Hamlin's father dies in house fire

Denny Hamlin's 75-year-old father, Dennis Hamlin, succumbed to his injuries after a house fire ravaged his North Carolina property. The 23XI co-owner's mother, Mary Lou, is currently receiving treatment at a burn centre in Winston-Salem.

NASCAR, on its part, addressed the matter with an official statement on X.

“NASCAR extends its deepest condolences to Denny Hamlin and the entire Hamlin family. Dennis Hamlin instilled a love of racing in his son, and sacrificed greatly to develop Denny into a world-class talent in the sport. We also continue to offer our thoughts and prayers to Denny’s mother, Mary Lou, and hope for her full recovery.”

Dennis used to own a hitch store and supported Hamlin's racing dreams by opening a family-owned team. He funded the operation by mortgaging the family home multiple times, in addition to selling his classic car collection. All of it went into Hamlin's eventual landing spot at Joe Gibbs Racing, where he has spent two decades chasing a Cup title.

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Edited by Vignesh Kanna