NASCAR Antitrust Case: O’Donnell Testifies on Business Model and Team Dynamics
Date: Thursday, [insert date]
Location: North Carolina Federal Court
NASCAR President Steve O’Donnell provided crucial testimony in the ongoing antitrust lawsuit filed by 23XI Racing and Front Row Motorsports against the organization. During a morning session, O’Donnell acknowledged that NASCAR Chairman and CEO Jim France was not amenable to exploring a new business model, contradicting an earlier suggestion from NASCAR’s senior VP of Strategy and Innovation, Ben Kennedy.
O’Donnell was questioned by Jeffrey Kessler, the lead attorney representing the plaintiffs, who referred to notes taken by O’Donnell from a 2022 meeting with team representatives, including Curtis Polk from 23XI Racing and Jeff Gordon of Hendrick Motorsports. Central to the discussions was the assertion that the current business model was “broken,” with Polk indicating that costs for racing could reach $20 million per team—figures O’Donnell admitted he could not dispute.
“Polk emphasized the need for a fair model and increased revenue support from drivers,” O’Donnell noted in his testimony. He stated that a well-managed Cup Series team should have the opportunity to compete for a championship and highlighted three critical issues brought forth by Polk: maximizing television revenue, ensuring a competitive landscape, and considering a cost cap.
The pivotal meeting involved questioning regarding the France family’s openness to a revised business model. Kessler confronted O’Donnell with his earlier comment about Kennedy’s optimism, leading to the clarification that Jim France was, in fact, resistant to new proposals.
The discussions from the March 2022 meeting were framed as an opportunity to address charter negotiations, which officially opened in July 2023. However, the session turned into a platform for team owners to voice frustrations concerning NASCAR’s operational framework. By August 30, 2024, NASCAR imposed a strict deadline for signing the 2025 charter agreement, which neither 23XI Racing nor Front Row Motorsports would endorse despite requests for an extension.
Following this, the lawsuit was filed on October 2, 2024. O’Donnell’s testimony included details on exclusivity clauses within track sanctioning agreements, as well as contingency plans for situations where multiple teams would opt out of signing the agreement.
O’Donnell took the stand after Bob Jenkins, owner of Front Row Motorsports, highlighted financial concerns tied to the charter agreement. He is expected to continue his testimony in the afternoon, after which he will face cross-examination by NASCAR’s legal team.
