“NASCAR must acknowledge the current model is unsustainable”
23XI Racing and Front Row Motorsports are suing NASCAR in an antitrust trial. The two sides have been in court for over a week.
The court has already ruled that NASCAR has a monopoly on stock car racing. Now, the teams are looking to prove that NASCAR used anti-competitive practices to build that monopoly.
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In April 2024, Rick Hendrick wrote a letter to NASCAR CEO Jim France as teams were negotiating with NASCAR regarding the upcoming charter agreement. That letter has surfaced it court and it reveals new financial information regarding one of the biggest and most successful teams in all of auto racing.
During negotiations, one of the things teams were aiming for was a larger piece of the TV revenue. They also requested that the charter system become permanent.
As of 2024, Hendrick Motorsports won two NASCAR Cup Series championships in a five-year period between Kyle Larson and Chase Elliott. (Note: Larson also won the 2025 championship but 2025 financials were not included pre-dating this 2024 letter.)
Despite winning two of the five championships in that five-year span, Hendrick Motorsports lost $20M. That is a shocking revelation.
Rick Hendrick’s letter to Jim France
“Thank you for reaching out. I hope you and your family are doing well,” Rick Hendrick opened in the letter to Jim France.
“I believe we agree it’s critical for Hendrick Motorsports and all teams to establish a Charter agreement that’s fair and ensures a collaborative and prosperous structure for NASCAR, its stakeholders and the industry as a whole. This is an incredibly exciting time. The sport has great momentum, and we now have an opportunity to make even more progress if we choose to embrace it.”
“The alternative is something none of us want, but I’m afraid we’ve reached a breaking point.”
“You and I have become good friends. I have tremendous respect for you and truly value our personal relationship. In turn, I understand you must prioritize business and the best interests of your company, your family and your employees. But for the sake of transparency, I want to share my dismay at the state of these negotiations and the ineffective process we’ve endured over the last two years. Both sides have wasted a tremendous amount of time and resources, and we find ourselves at an unnecessary impasse.”
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Hendrick Motorsports Financials
“I’d also like to take this opportunity to share some facts. Over the past five years, Hendrick Motorsports has won two NASCAR Cup Series championships – and lost $20 million. I’d be happy to show you audited financial statements. I love this sport, and my passion for it keeps me engaged, but there’s a clear business reality. Before we can possibly reach an agreement, NASCAR must acknowledge the current model is unsustainable for teams and cannot continue without substantive, fundamental change.”
“Hendrick Motorsports has helped grow the sport. For example, Ally is one of the few full-time primary sponsors and, because of our relationship, has now become one of your official NASCAR partners. They also spend well over $1 million annually with FOX and NBC. We brought NAPA Auto Parts back into NASCAR after they were thoroughly embarrassed and elected to leave. My own company spend more than $20 million per year in sponsorship and advertising with NASCAR’s broadcast partners.”
“To allow our racing programs to operate, Hendrick Automotive Group did $1 billion in business with Hendrick Motorsports sponsors in 2023, including:
– “Ally: 22,000 loan originations ($951 million in retail paper)”
– “UniFirst: 24,000 uniforms leased ($4 million)”
– “Axalta: 33,000 gallons of Axalta paint used ($8.5 million purchased)”
– “Valvoline: 887,000 gallons of oil poured”
– “NAPA: 1.2 million parts purchased ($9 million)”
“The list of brands that have engaged with NASCAR because of Hendrick Motorsports is long. We have invested in building star drivers and have promoted the sport as much as anyone over the last four decades. Our organization and our partners direct tens of millions back to your company in the form of luxury suite rentals and other track activation costs.”
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“But the message I continue to hear from NASCAR is that the teams bring no value, our rights are worthless and we don’t know how to run a viable business.”
“To be made to feel that my family’s investments and sacrifices are not appreciated, valued or respected by NASCAR is disappointing. To put it mildly. To be asked to consider a lesser deal, as your most recent proposal suggests, is a slap in the face. I will not agree to it.”
“Jim, your family has built an incredible legacy over the past 76 years, and I know it’s vitally important to you that it continue to grow and be successful long after we’re both gone. Having invested in building Hendrick Motorsports for 40 of those years, I feel exactly the same way. At this point in my life, I’m focused on ensuring that our company is around for the next 40 years. Jeff Gordon love the sport. So does my son-in-law Marshall Carlson, my grandson and the rest of my family. I want to see them carry it on far into the future. I owe it to my family, my employees and their families to do everything in my power to secure that future.”
“I understand it’s your preference to meet with teams individually, but I urge you to personally come to the table and work together with us. The teams agree on the core issues and are committed to seeing this through. We are presenting reasonable, common-sense ideas that will allow us to build long-term value, encourage future investment by teams, attract new ownership to the sport, and grow the pie for everyone, including NASCAR. Notable, the proposals also do not ask you to take a step back financially.”
“Our negotiation is about survival for the teams but it’s also about wiping the slate clear and creating a truly collaborative structure that will propel NASCAR to even greater heights. In my heart, I know there is a win-win solution that will allow all of us to thrive for many more years. If I’ve learned anything in my time in business, it’s that we’ll always be better by coming together. We have that opportunity right now.”
NASCAR team owner says he’s lost $100M in the sport
Links
NASCAR | Hendrick Motorsports | 23XI Racing | Front Row Motorsports
