CHARLOTTE, N.C. — The Lawsuit Against NASCAR

Michael Jordan and Denny Hamlin’s 23XI Racing are currently pursuing legal action against NASCAR for antitrust violations. However, their co-plaintiff, Bob Jenkins of Front Row Motorsports, has remained relatively low-profile until now.

Bob Jenkins Takes the Stand

On Wednesday, Jenkins testified as the third witness, revealing that his two decades as a NASCAR Cup Series team owner have resulted in zero operational profit over the years, averaging a loss of $6.8 million annually. For instance, he reported an $8 million loss in 2022, followed by another $5.7 million loss in the subsequent year.

A Lifelong Passion for Racing

Despite these setbacks, Jenkins described himself as a lifelong racing enthusiast. His successes in other business endeavors enabled him to persist in NASCAR, stating that he runs “the team that has done the most with the least,” even while losing millions in stock car racing. Jenkins shared stories from his upbringing in an East Tennessee housing project, where he became one of the largest fast food franchise owners in the U.S.

Frugal Practices in Racing

His dedication to the sport brought him to own the three-car Front Row Motorsports team, which adopts cost-saving measures, such as bringing its own ice to races. This is part of Jenkins’ larger frustration with NASCAR’s claims that teams need to reduce expenses, given that he has already cut costs to the bone.

Charter Challenges and Expenses

Like Jordan and Hamlin’s team, Jenkins lacks the charters that offer financial advantages, a key aspect of the lawsuit. His charters lapsed when they opted not to sign a new agreement last September. Other owners expressed similar reservations but felt compelled to sign due to looming deadlines and invested interests.

NASCAR’s Position on Finances

NASCAR attorney Lawrence Buterman raised doubts about Jenkins’ financial losses, suggesting he concealed expenses that could portray Front Row’s finances more favorably. Jenkins countered that he would not field an unsponsored car since it harms business, noting that reduced compensation for drivers compared to other sports reflects the distinct costs of racing.

Discussion of Monopoly Allegations

NASCAR’s strategy chief, Scott Prime, confronted accusations of monopoly abuses as testimony continued. Kessler, representing 23XI and Front Row, highlighted NASCAR’s control over charter agreements, suggesting teams lacked bargaining power. Prime acknowledged the existence of a take-it-or-leave-it offer presented to teams, which Kessler characterized as a coercive tactic typical of a monopolist.