Michael Jordan's legal team races against time in antitrust trial against NASCAR

CHARLOTTE, N.C. — Michael Jordan's attorneys were under pressure Tuesday to complete their presentation in the federal antitrust trial against NASCAR that is plodding so slowly the judge has repeatedly admonished both sides.

An economist used almost all of Monday to explain how he landed at a figure of $364.7 million in damages owed by NASCAR to 23XI Racing and Front Row Motorsports in their revenue-sharing dispute with the top motorsports series in the United States.

U.S. District Judge had previously told Jeffrey Kessler, attorney for the two race teams, that he wants Kessler's case completed Tuesday, the seventh day of the trial in the Western District of North Carolina. He also asked the nine-person jury to serve an additional hour for the remainder of the week in an effort to avoid using a full third week to complete the case.

Edward Snyder, a professor of economics who worked in the antitrust division of the Department of Justice and has testified in more than 30 cases, including “Deflategate” involving the NFL’s New England Patriots, will continue testimony Tuesday.

He's so far outlined why he found NASCAR to be in a monopoly using anticompetitive business practices, and explained the complex formula to decide 23XI is owed $215.8 million while Front Row is owed $148.9 million.

Based on his calculations, Snyder determined NASCAR shorted 36 chartered teams $1.06 billion from 2021-24.

NASCAR contends Snyder’s estimations are wrong and its own two experts “take serious issue” with the findings. Defense attorney Lawrence Buterman asked Snyder his opinion on NASCAR’s upcoming expert witnesses and Snyder said they were two of the best economists in the world.

Bell wants the defense to get to at least its first witness before end of day Tuesday, but Kessler has three remaining on his list once Snyder's testimony concludes. Kessler still plans to call NASCAR chairman Jim France, NASCAR commissioner Steve Phelps and Hall of Fame team owner Richard Childress.

The suit is about the 2025 charter agreement, which was presented to teams on a Friday in September 2024 with a same-day deadline to sign the 112-page document. The charter offer came after more than two years of bitter negotiations between NASCAR and its teams, who have called the agreement “a take-it-or-leave-it” ultimatum that they signed with “a gun to their head.”

A charter is similar to the franchise model in other sports, but in NASCAR it guarantees 36 teams spots in the 40-car field, as well as specific revenue.

Jordan and three-time Daytona 500 winner Denny Hamlin for 23XI, along with Front Row Motorsports and owner Bob Jenkins, were the only two teams out of 15 to refuse the new charter agreement.

The Florida-based France family founded NASCAR in 1948 and, along with Speedway Motorsports, owns almost all the tracks on the top Cup Series schedule. Snyder noted NASCAR had $2.2 billion in assets, an equity value of $5 billion and an investment-grade credit rating.

Snyder also testified NASCAR had $250 million in annual earnings from 2021-24 and the France family took $400 million in distributions during that period.

The final three witnesses for the two teams suing should shed more light on the acrimonious nature of the lengthy charter agreement negotiations.

Childress was the subject of derogatory text messages in which Phelps called the six-time championship-winning owner a redneck who “needs to be taken out back and flogged.” Childress has said he's considering legal action, even though Phelps apologized some time ago in warning Childress was going to be revealed.

Jordan's involvement has put a spotlight on NASCAR that it doesn't want as the global icon tries to prove NASCAR is run by a family of dictators enriching themselves at the expense of the teams and drivers.

NASCAR publicly admitted it wants to settle the case in comments made ahead of the November season finale by Phelps. Jordan has previously said he’s open to a settlement; several mediation sessions failed to find a solution.

Every twist in the yearlong court battle has been a setback for NASCAR, which maintains it did give teams an improved revenue model from the original 2016 charter agreement and everything it has done is for the benefit of growing the sport on the France family dime.

However, Jenkins has claimed he’s never turned a profit in more than two decades of racing and has stated losses between $70 million and $100 million. Jordan and Hamlin have admitted 23XI Racing has been profitable in its five years of existence, but largely based on Jordan’s ability to draw high-dollar sponsors.

NASCAR said Monday it has 16 witnesses on its list, and Hall of Fame team owners Rick Hendrick and Roger Penske, two of the most powerful figures in motorsports, are expected to be called.

Penske, as owner of Indianapolis Motor Speedway and IndyCar, which recently adopted its charter system, can testify to race sanctioning agreements, the revenue models and financial health of race teams.

Hendrick, a close friend of the France family for decades, is a car salesman and Charlotte local who can use his communication skills to support the theory everyone in racing understands the financials and willingly enters into NASCAR and the France’s business model.