The financials of NASCAR are heading to court
23XI Racing and Front Row Motorsports are currently suing NASCAR. This is in regards to the terms of the charter agreements.
NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
With the new charter agreement, 23XI and FRM elected not to sign. Instead, they opened a lawsuit.
23XI Racing is co-owned by Joe Gibbs Racing driver Denny Hamlin along with NBA champion Michael Jordan. Front Row Motorsports in owned by Bob Jenkins.
Recently, the court ruled that both teams will have to give up all six charters (three per team). They will race as Open teams while the lawsuit is ongoing. Both teams have appealed that ruling.
NASCAR wins court appeal to claim charters from 23XI / FRM
Now, the courts have requested from the other NASCAR Cup Series teams. This information is set to become available to NASCAR during the discovery process.
NASCAR notes that 23XI Racing and Front Row Motorsports are trying to “blow-up the Charter system”
Judge calls for financial information from NASCAR teams
All full-time teams are set to turn in financial information to the courts. The ruling was issued by Judge Kenneth D. Bell of the North Carolina Western District.
– Annual data for revenue, costs and profit/loss. This information will date back to 2014.
– Teams will not be required to release financial information of other businesses tied to NASCAR, such as engine programs.
– This information will only be required of full-time teams.
13 of the 15 charter teams are not involved in the NASCAR lawsuit.
12 of those 15 teams stated in court that it would be “catastrophic” to make financial information available. They said they were worried the information would be leaked. Those same teams also noted it was uncomfortable for them to be dragged into the lawsuit.
The trial is expected to take place in December.
“I am amazed at the effort going into burning this house down over everybody’s heads,” Judge Bell said following the hearing. “But I’m the fire marshal and I will be here in December if need be.”
Brad Keselowski says the NASCAR lawsuit is a threat to the sport
NASCAR accused of threatening to revoke charters for agreement
