Stunning details emerge from NASCAR’s discovery hearing as they reportedly target 23XI and FRM’s confidential particulars

The teams that signed the charter agreement expressed disappointment over NASCAR reportedly asking the court for their confidential financial information. NASCAR is said to have aimed to use it in its lawsuit battle against 23XI Racing and Front Row Motorsports.

In a report by NASCAR Insider Matt Weaver, Attorney Adam Ross, a representative of non-party teams, argued that the sanctioning body wants to prove that at least one or two teams make a profit, debunking claims that other teams are losing money. However, the non-party teams allegedly don't trust NASCAR to keep the confidentiality of their financial information.

As such, they asked U.S. District Judge Kenneth Bell to dismiss NASCAR's request, with the decision expected to come out sooner rather than later. In response, NASCAR said the judge has jurisdiction over the matter, considering it is a federal antitrust case.

Adam Ross defended the non-party teams and apparently said (via Matt Weaver on X):

“Without overblowing this, this is a crisis.”

Teams like Hendrick Motorsports signed the charter extension deal, with team owner Rick Hendrick saying he was tired and no one gets everything they want in negotiations anyway. However, it seems the teams aren't safe either after NASCAR is alleged to have dragged them into the whole lawsuit mayhem.

12 of the 15 teams argued in court that they are hesitant to disclose their confidential information to NASCAR. The two other teams are the plaintiffs, 23XI Racing and Front Row Motorsports, while the other one is Kaulig Racing, which submitted its documents to the sanctioning body.

NASCAR aims to refute 23XI Racing and Front Row Motorsports' claims alleging monopolistic practices in the sport. The two teams argued that the sanctioning body is forcing teams to accept anticompetitive contracts, hence their decision not to sign the charter extension last September 2024.

---

“NASCAR has gone a step too far”: Attorney Adam Ross on NASCAR reportedly asking for the teams' confidential financial information

Attorney Adam Ross criticized NASCAR over its request for the non-party teams' confidential financial information from the past 11 years. He believes the sanctioning body has “gone too far” and the consequences could be catastrophic.

In a report by AP News, Ross said:

“It would be absolutely devastating to these race teams if their competitors were able to find out sponsorships on the cars, driver salaries, and all revenue streams [...] It cannot make its way into the public realm.” “NASCAR has gone a step too far,” he added.

Meanwhile, U.S. District Judge Kenneth Bell thought the ongoing lawsuit could still reach the scheduled trial in December, which he vowed to attend.

“I am amazed at the effort going into burning this house down over everybody’s heads,” Bell said. “But I’m the fire marshal and I will be here in December if need be.”

Six-time NBA champion Michael Jordan is a co-owner of 23XI Racing - Source: Imagn

If the plaintiffs lose the legal battle, they would have to forfeit their charter benefits, including guaranteed entries to all 36 races and massive payouts. The consequences should affect the livelihood of individuals working for the teams, including the drivers.

23XI Racing, co-owned by NBA superstar Michael Jordan and Joe Gibbs Racing driver Denny Hamlin, fields Tyler Reddick, Bubba Wallace, and Riley Herbst. Meanwhile, Front Row Motorsports also has a three-driver lineup consisting of Todd Gilliland, Noah Gragson, and Zane Smith.

Get the latest NASCAR All-Star race news, Xfinity Series updates, breaking news, rumors, and today’s top stories with the latest news on NASCAR.

Edited by Tushar Bahl