NASCAR hit with $365M damages demand as expert witness disputes ‘bankruptcy’ claims in week 2 of antitrust lawsuit trial 

NASCAR Antitrust Lawsuit Trial Begins In Charlotte, North Carolina - Source: Getty
NASCAR Antitrust Lawsuit Trial Begins In Charlotte, North Carolina - Source: Getty

Edward Snyder, an expert economist who testified during Monday's trial session, has placed a $364.7 million damages figure on NASCAR. Snyder suggested the number as compensation for the two teams involved in the lawsuit.

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As per AP News, Snyder based his calculations on the 45 per cent revenue-sharing model in Formula 1, while he alleged that NASCAR only pays out 25 per cent to its teams. According to his calculations, 23XI alone is owed $215.8 million, while Front Row Motorsports is owed $148.9 million.

The economist, who has prior experience in the antitrust division of the Department of Justice, also claimed that the sanctioning body is following monopolistic practices. He pointed to the exclusivity agreements with tracks to prevent a breakaway series from gaining momentum.

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Notably, the sport used to have one-year non-compete clauses before the charter system began in 2016, while the current status quo has five-year agreements in place. Moreover, the governing body controls the car components in addition to the charters.

Sports Business Journal reporter Adam Stern reported on the latest development, writing,

"The two teams suing NASCAR are asking for about $365 million in combined damages from the series for alleged anti-competitive conduct, per its economist who did the calculation. ➡️ He also disputed that @NASCAR would go bankrupt if forced to pay an extra $300M per year to teams."
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Per Snyder, the league owes the 36 chartered teams a combined total of $1.06 billion between 2021 and 2024. The sanctioning body, however, pushed back on Snyder's notion, calling his F1 comparison financially flawed.

The trial has also revealed $200 million in annual earnings during 2021-2024, while the France family took home $400 million per year in distributions.


Michael Jordan "'100% confident'" in winning the lawsuit against NASCAR

Michael Jordan provided his witness testimony on Day 5 of the antitrust trial. The 23XI co-owner has been present throughout the trial proceedings as the team's corporate representative.

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Amidst his highly anticipated testimony, Jordan shared his confidence in winning the legal dispute. Adam Stern shared the news on his X handle, writing,

"During a break after opening statements, Jordan told Bloomberg Law he was '100%' confident his team would win the trial after efforts to reach a settlement didn’t come through. 'I would have settled if I thought a settlement was worthwhile.'"
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The first week of trial consisted of testimonies from Denny Hamlin, Front Row Motorsports owner, Bob Jenkins, NASCAR president, Steve O'Donnell, and other executives like Scott Prime.

Upcoming testimonies include figures like CEO Jim France, Commissioner Steve Phelps, and team owner Richard Childress. The trial is expected to conclude this week, while Judge Kenneth Bell has requested the jury to stay back an extra hour every day to avoid a third week of proceedings.

Get the latest NASCAR All-Star race news, Xfinity Series updates, breaking news, rumors, and today’s top stories with the latest news on NASCAR.

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Edited by Vignesh Kanna
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