NASCAR's Charter System Under Fire as Testimony Intensifies
The antitrust trial against NASCAR and its top officials has reached a boiling point, with key testimony from team owner Richard Childress and Chairman Jim France further fueling the controversy. The 23XI Racing team, led by Michael Jordan, claims that NASCAR's charter system is designed to stifle competition and limit revenue opportunities for teams.
On Tuesday, Childress took the stand to testify that he was pressured into signing a 2025 revenue-sharing agreement with NASCAR, despite having concerns about the charter system. "I would not have signed those charters if I was financially able to do what I do," he said. "We are a blue-collar operation."
Childress claimed that France and other top officials made it clear that permanent charters were off the table, but refused to reveal the reasoning behind their decision. He suggested that the charter system is essential for team equity growth and would be unsustainable without it.
Meanwhile, France testified that he has not changed his stance on granting teams permanent charters, despite evidence suggesting that he entered negotiations determined to thwart teams' efforts for a bigger piece of the revenue pie. When questioned about the allegations, France replied, "No, I have not."
The trial also heard from former NASCAR Commissioner Steve Phelps, who testified that working with race teams to reach new charter agreements and complete media rights deals was his top priority in 2023. However, Phelps acknowledged that negotiations continued into 2024 due to team resistance.
According to Phelps, the charter system has increased revenue for teams by 62% compared to previous contracts, but he also admitted that the sport would cease to exist at $720 million per year, according to teams' initial requests. The final agreement saw a significant increase in revenue distribution, with most teams accepting $431 million per year.
The trial enters its eighth day on Wednesday, with Jim France returning to the stand as defense attorneys continue to challenge plaintiffs' expert Edward Snyder's benchmark theory.
The antitrust trial against NASCAR and its top officials has reached a boiling point, with key testimony from team owner Richard Childress and Chairman Jim France further fueling the controversy. The 23XI Racing team, led by Michael Jordan, claims that NASCAR's charter system is designed to stifle competition and limit revenue opportunities for teams.
On Tuesday, Childress took the stand to testify that he was pressured into signing a 2025 revenue-sharing agreement with NASCAR, despite having concerns about the charter system. "I would not have signed those charters if I was financially able to do what I do," he said. "We are a blue-collar operation."
Childress claimed that France and other top officials made it clear that permanent charters were off the table, but refused to reveal the reasoning behind their decision. He suggested that the charter system is essential for team equity growth and would be unsustainable without it.
Meanwhile, France testified that he has not changed his stance on granting teams permanent charters, despite evidence suggesting that he entered negotiations determined to thwart teams' efforts for a bigger piece of the revenue pie. When questioned about the allegations, France replied, "No, I have not."
The trial also heard from former NASCAR Commissioner Steve Phelps, who testified that working with race teams to reach new charter agreements and complete media rights deals was his top priority in 2023. However, Phelps acknowledged that negotiations continued into 2024 due to team resistance.
According to Phelps, the charter system has increased revenue for teams by 62% compared to previous contracts, but he also admitted that the sport would cease to exist at $720 million per year, according to teams' initial requests. The final agreement saw a significant increase in revenue distribution, with most teams accepting $431 million per year.
The trial enters its eighth day on Wednesday, with Jim France returning to the stand as defense attorneys continue to challenge plaintiffs' expert Edward Snyder's benchmark theory.
so i feel for michael jordan and 23XI racing they're really fightin for their rights here and it's all about fairness and revenue distribution 
if the charter system is really hurting competition how come it's increased revenue for teams by 62%? that's a big number 
plus the fact that former commissioner steve phelps was pushin for new agreements until 2024 tells me there's more to this story than meets the eye 
i hope they get to the bottom of this and bring some transparency to the sport 
. And Phelps' testimony that they were negotiating new charters in 2023 already raises some red flags.
I mean, it sounds legit that they're trying to keep teams from being too competitive and stuff, but at the same time, if they're pressuring people into signing deals without giving them a say in it...that's just weird. 
. And if teams really are making that much money from their charters...I guess it's not so bad for them? 
. Maybe they should just have a team vote or something? 
It doesn't add up.
. These guys are digging deep into all sorts of allegations and it's gonna be interesting to see how it all plays out in the end 
. One thing for sure, NASCAR needs to figure out a way to make this sport more accessible to everyone, not just the big teams 
.
france is tryin to brush it off but imo he's hidin somethin & childress testified that he was pressured into signin that agreement which is so suspicious idk how much longer nascar can keep gettin away with this