"I'm a realist": Kenny Wallace weighs his opinion on NASCAR consequences from the Michael Jordan-led antitrust fight

The 23XI Racing-Front Row Motorsports antitrust lawsuit against NASCAR entered its fourth day of testimony on December 4, marking the most significant legal challenge the sport has faced in decades. Former driver and longtime analyst Kenny Wallace seemed worried about the outcome.

The teams argue that NASCAR restricts competition to the point where they have no viable alternative. Their claim outlines several barriers: Cup teams cannot race in other stock-car series, Cup tracks cannot host outside stock-car events, the Next Gen car is locked behind single-source suppliers, payouts are controlled by the sanctioning body, and the car cannot run anywhere else.

The judge has already ruled that NASCAR holds a monopoly in the market for “premier stock-car racing team services.” What the jury must decide is whether NASCAR maintained that monopoly illegally. Wallace addressed the consequences of the case in his latest Coffee with Kenny:

“I do not like NASCAR being sued. I think this is bad for our sport. I think it’s ugly. However, I’ve always been a realist… Now, I do look at things in a positive mental attitude... And as much as I love NASCAR and I’ve told you all, they’re being sued, and I can’t help it. I am sad for them and I don’t like it.” (0:51 onwards)

Wallace also pondered on the long-term consequences of the case, referencing his conversation with former driver Kenny Schrader, and added:

“(Kenny Schrader) He says, ‘What is this going to do to our sport? Is it going to hurt our sponsors? Will the sponsors leave?’ They don’t want none of this. Will the fans say, ‘We’re not coming back? We can’t believe what Steve Phelps said about Richard Childress.’ So, let me be clear. I don’t like this.

“So, what is my thoughts on this whole deal right now? Well, as I watch the court case, it’s still very early. I got to tell you, I hate to say this, but I think 23XI and Front Row, I think they got the edge right now."

NASCAR maintains that nothing it has done is illegal. Its attorneys argue that the system reflects standard business choices - cost control, supplier standardization, and rules that protect the value of their $7B TV deal. They argue that charter payouts have increased, the sport is more stable, and no team raised these concerns during negotiations.

The early days of the trial have highlighted messages and internal discussions that the plaintiffs claim point to a different intent, which protected NASCAR’s leverage at the expense of the teams’ long-term health. Texts shown to the jury included references to team owners and criticism of their proposals, including the “stupid redneck” message for Richard Childress, which Wallace alluded to.

Other exchanges described the teams’ requests as “insanity” and framed a negotiating world closer to a 1990s-style 'dictatorship' structure that left teams with little influence. The testimony also revisited the creation of the Next Gen car and its exclusivity, track-use restrictions, and documented discussions among executives about “Project Gold Codes,” a contingency plan developed in case teams refused to sign the 2025 charter agreement.

Teams have pointed to these internal texts as proof that NASCAR protected its position through exclusivity clauses that made it nearly impossible for any rival series to form. Most teams lose money even in competitive seasons. Hendrick Motorsports, the most successful team in Cup history and fresh off a 15th championship, reported losses. Wallace said that these early testimonies strengthened the teams’ position for now, though the trial still has a long way to go.

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NASCAR insider points out the consequences of the 23XI-FRM antitrust trial

Curtis Polk (C) and Michael Jordan (R) at the Charlotte Federal court. Source: Getty

Front Row Motorsports owner Bob Jenkins took the stand on Day 4 of the trial, and testimony later moved to NASCAR President Steve O’Donnell. With early trial favoring the teams, Fox Sports' Bob Pockrass outlined potential outcomes on X:

“If 23XI/FRM win case: Jury determines monetary damages, only actual damages. Judge could triple that amount. Judge determines antitrust remedies. Anything possible such as sell the tracks, permanent charters, no charters, get rid of Next Gen concept, no exclusivity clauses.”

Bob Pockrass

@bobpockrass

If 23XI/FRM win case: -Jury determines monetary damages, only actual damages. Judge could triple that amount. Judge determines antitrust remedies. Anything possible, such as sell the tracks, permanent charters, no charters, get rid of Next Gen concept, no exclusivity clauses.

Pockrass added that if NASCAR wins, 23XI and Front Row could be forced to compete as open teams and both could face shutdown in a year unless appeals change the outcome. He also wrote that, whatever the verdict, the case is almost certain to head to the U.S. Court of Appeals for another year or two.