Arguments intensified on Tuesday as the NASCAR antitrust trial resumed, with Denny Hamlin’s charter dispute taking center stage in a courtroom filled with stakeholders, attorneys, and a visibly frustrated Judge Louis B. Bell. As the trial enters a crucial phase, lingering questions about NASCAR’s control over team charters and the sport’s business practices remain unresolved, prompting distress and agitation among the parties involved.
Testimony from Bob Jenkins Underscores Financial Strains and Charter Concerns
The proceedings opened with Front Row Motorsports’ owner Bob Jenkins completing his testimony, which was marked by tension over his team’s financial challenges and the overall economics of maintaining a NASCAR Cup entry. Jenkins revealed his view that fielding a competitive Cup car requires an investment of around $20 million each season, a figure based on information from multiple teams. However, NASCAR’s attorneys challenged this claim, citing FRM’s documents that showed considerably lower expenditures during the disputed period.
The dispute extended to Jenkins’ accounting of damages, as questions arose over more than $1 million included for Truck Series losses. Jenkins eventually conceded these claims should not be attributed to Cup Series damages. Further scrutiny came regarding his continued purchase of charters—despite criticism of the system—leading to Jenkins stating he bought them
“based on the belief that some day, they will be fair.”
– Bob Jenkins, Front Row Motorsports Owner.
Merge Attempt with Denny Hamlin’s 23XI Racing Draws Examination
Text exchanges between Jenkins and 23XI Racing’s co-owner, Denny Hamlin, resurfaced during questioning, spotlighting frustrations with the current charter system. NASCAR attorney Lawrence Buterman suggested that deadlines used by Jenkins in merger talks mirrored those set by NASCAR, a comparison Jenkins quickly rejected. According to Jenkins, Hamlin and 23XI had other options, such as pursuing charters from teams like StarCom or Rick Ware Racing, and he dismissed any notion that he manipulated charter prices, despite messages indicating otherwise.
Ultimately, the collapse of the proposed merger with Hamlin’s 23XI Racing was attributed to lack of engine support from Toyota and a need for greater clarity from Ford and Roush regarding Jenkins’ long-term intentions.
Steve O’Donnell Faces Intense Scrutiny Over Charter Dealings and Threat of Rival Series
After lunch, attention shifted to NASCAR president Steve O’Donnell as plaintiffs’ lawyer Jeffrey Kessler launched an extensive and pointed examination. Much of the discussion revolved around O’Donnell’s internal notes and communications about the governing body’s approach to charters, potential threats from rival series, and exclusivity clauses in team agreements. When asked whether he strategized for a possible breakaway league formed by Cup teams, O’Donnell admitted he prepared for such scenarios, referencing tracks like Eldora and Indianapolis Motor Speedway, and explained such planning is part of his responsibilities.
The plaintiffs argued that exclusivity provisions now embedded in agreements for Xfinity and Truck Series events effectively block potential competitors from securing viable venues.
O’Donnell insisted holdout teams dissatisfied with the charter arrangements could still enter races as open competitors, but Kessler dismissed this as impractical. O’Donnell replied, “I’m not sure about that.” – Steve O’Donnell, NASCAR President.
Leadership Strife and ‘Gold Codes’ Surface in Courtroom Debates
Kessler also referenced meeting notes in which Jeff Gordon reportedly asked if the France family
“was open to a new model,”
with Ben Kennedy initially agreeing, though O’Donnell acknowledged Jim France later did not support such a change. Another email, in which O’Donnell characterized Kennedy’s negotiation posture with the phrase
“comfortable 1996, fuck the teams, dictatorship…tiny sport,”
became a flashpoint in the courtroom. O’Donnell hesitated, eventually saying that the term “dictator” could refer to anyone. O’Donnell’s handwritten “Gold Codes,” called a “nuclear option” by Kessler, underscored the internal strife and apprehension running through the organization.
NASCAR’s Response to SRX and Charter Holder Involvement Prompts Further Disputes
Kessler pushed on NASCAR’s handling of the Superstar Racing Experience (SRX), highlighting O’Donnell’s growing worry as Cup drivers joined the competitor series, making it
“look more and more like NASCAR.”
– Steve O’Donnell, NASCAR President. O’Donnell indicated that Tony Stewart’s involvement, given Stewart’s dual role as a Stewart-Haas Racing charter holder and SRX co-founder, could muddy competitive lines. O’Donnell testified that SHR president Brett Frood initially offered assurances SRX wouldn’t mirror NASCAR, but
“all things that ended up happening.”
– Steve O’Donnell, NASCAR President.
Debate erupted over NASCAR’s denial of a Speedway Motorsports request to host SRX weekends, with Kessler contending this move was designed to stifle competition. O’Donnell maintained the decision was made during sensitive broadcast negotiations, explaining,
“we wanted to gain as much TV revenue for the teams and tracks as possible.”
– Steve O’Donnell, NASCAR President. In another exchange, he clarified his inquiry into Denny Hamlin’s SRX involvement:
“I just wanted legal to look at it.”
– Steve O’Donnell, NASCAR President.
Unexpected Losses, Risky Business Decisions, and Removal of Governance Protections
Scrutiny intensified as O’Donnell, earning a $1.2 million salary plus bonuses, revealed staggering losses—$6 million in Mexico City and $55 million for the Chicago Street Course over three years. Nonetheless, he insisted the Chicago venture was crucial, declaring that NASCAR
“was able to get $1 billion because we had the Chicago Street Race and Mexico City,”
and that major deals, including one with Amazon, hinged on Chicago’s inclusion. – Steve O’Donnell, NASCAR President.
Kessler challenged NASCAR’s removal of the so-called “three strikes” rule, a former governance protection that let teams veto major changes. O’Donnell admitted the rule was eliminated because teams were blocking expansion initiatives:
“we wouldn’t have gone to the Chicago Street Race or Mexico City,”
if this mechanism remained. – Steve O’Donnell, NASCAR President.
Judicial Frustration and Mounting Pressure as the Trial Drags On
Tensions climaxed as Judge Louis B. Bell interjected with a stern warning to both sides, irritated by slow progress and repetitive evidence: the jury, he cautioned, was seeing
“a whole lot of trees and not a lot of forest.”
– Judge Louis B. Bell. Bell insisted proceedings move faster and that both camps shorten their witness lists, also ordering that Roger Penske testify as scheduled due to his limited availability. Plaintiffs’ attorney Kessler admitted he’d require several more days, a timetable the judge refused.
By the end of the day, O’Donnell faced direct questioning from NASCAR’s Christopher Yates, but Judge Bell’s exasperated tone left the pressure unmistakably high for all involved.
Implications of the Ongoing Antitrust Battle
With weeks of complex testimony still ahead, the Denny Hamlin charter dispute stands as a focal point in the broader clash between NASCAR, its teams, and an evolving business landscape. As both sides are pushed to clarify their positions amid growing impatience from the court and jury, the case may set significant precedents for how the sport’s future is shaped, determining not only Denny Hamlin and 23XI Racing’s path forward, but also the competitive and economic structure of NASCAR itself.
