Why 23XI Racing and FRM want answers from Rick Hendrick and Roger Penske on ‘all topics’

23XI Racing and FRM have called upon Rick Hendrick and Roger Penske to testify in their antitrust lawsuit against NASCAR. The Athletic's Jeff Gluck broke down the reasoning for the sudden move.

NASCAR's whole ordeal with 23XI boils down to a revenue split from the $7.7 billion media rights deal. The two teams allege unfair compensation, saying the current model leaves them barely breaking even.

Notably, FRM team owner Bob Jenkins' financial records were uncovered during the discovery process, which revealed an apparent loss of over $100 million with his NASCAR teams. On the other hand, NASCAR's internal communication has revealed a take-it-or-leave-it style of approach in its negotiations.

That said, 23XI Racing and FRM have resorted to a probing deposition of Rick Hendrick and Roger Penske. The two team owners were initially reluctant to testify, but their letters of declaration backing NASCAR have opened them up for questioning.

Reflecting upon HMS executive Jeff Gordon's role in the Team Negotiation Committee, the two teams opened their argument, saying,

"Mr. Gordon has stated publicly that, despite being one of the most successful and longest-running Cup Series teams, Hendrick Motorsports has not made a profit in ten years. Plaintiffs are entitled to question Mr. Hendrick about those statements and the facts about Hendrick’s financial condition and profitability under the charter system that Mr. Hendrick discusses in his declaration, as they bear directly on whether NASCAR has exercised its monopoly power to pay the racing teams, including Mr. Hendrick’s team, below-competitive-market compensation."

23XI Racing and FRM recently had a major breakthrough in their antitrust lawsuit. The court ruled in favour of their summary motion that sought to define NASCAR's market.

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23XI Racing and FRM seek a partial dismissal of their antitrust lawsuit

23XI Racing and Front Row Motorsports have sought a partial dismissal of their antitrust lawsuit that targets the International Speedway Corporation. Fox analyst Bob Pockrass clarified the terms in an X post.

“Think of it this way: Section 1 more would cover NASCAR and ISC working together to monopolize a market. Section 2 covers one company's unilateral acts. That has always been strongest part of case so better to focus on that at trial (2/2),” Pockrass wrote.

With on settlement in sight, 23XI Racing, FRM and NASCAR will go ahead December 1 trial. Judge Kenneth Bell had previously warned that the case going in front of a jury won't end well for both parties.

If NASCAR loses, the charter system will face an overhaul, while the teams risk losing their charters in pursuit of better payouts. They currently contest as open teams and will continue doing so until the case concludes. The sanctioning body has agreed to hold off on selling the teams' charters until the litigation is resolved.

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Edited by Vignesh Kanna