So it’s been the dark cloud that has hung over the NASCAR world since Oct. of 2024 when 23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR and its Chairman Jim France.
For about 12 months the news about the lawsuit trickled out in drips and drabs along the way. News about this hearing, news about a judge’s ruling on something else. Every now and then some juicy tidbit involving the case would come out. The dark cloud just quietly hung over.
And then the last five days happened and everything seemed to go nuclear when it comes to the case.
LISTEN: The Massive Thing Nobody Is Saying About NASCAR And All The Lawsuit News
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Well Shawn, Nascar really has never been mainstream imo. I’m (and you I’m sure) are race fans. But geez, I have a ton of friends, and none of them follow anything race related, or let alone nascar! I’m often taken to task about, “how can you follow those round and rounds”! Or, how hard can it be? All you gotta do is just turn left all the time (mostly).
We race fans are a dedicated, but minority group imo, when it comes to “big time” sports.
Yeah, there was phenomenal growth at the “bigs” late 90’s early 200o’s. But really, when I looked around the stands during those times at cup events, I really wasn’t sure those good times would (could) last. They were more like “happenings” than race fans coming out to support the sport. (See the coliseum or California Speedway)
And, even at that time, I knew for any race, I could record on a dvd on sunday, and, if I did not get to watch it until the following Thursday, no worries! You never had to worry about who won by reading it in a paper, or mainstream news outlets at all! You knew it would not be covered, unless, God forbid, someone was severely injured or worse, at a track.
If you wanted news on Nascar, you had to go looking for it. True to this day imo.
Now your peice imo, is dead nuts. Any other sport, and that would have made all the major news at 6:00 pm on any channel, let alone the sports cable channels.
My point is, let’s face it. Has Nascar really ever been mainstream? What a shame on what was release. A real slap to all involved. And, where do the suits stand? Last I knew, 23xi and front row lost…..
Happy Thanksgiving Shawn, and thanks for what you do. No doubt, you are one of the few left, and I appreciate this site.
BobF,
Thank you. Happy Thanksgiving.
This lawsuit is absurd with many massive facets.
That NASCAR says it is not a monopoly and teams are free to go race anywhere else such as F1, Indy, etc. is profoundly stupid.
And that the cars and equipments are specified by NASCAR and mandated to be procured by a NASCAR designated source is not exactly a free-market arrangement that encourages participation and market competition.
so nascar should be penalized for a system the teams wanted?
Joe,
That’s just a far too simple synopsis of the situation. Yes, there were team owners years ago that fought for NASCAR to create a system where the team they owned had a value beyond what the equipment and shop were worth when they decide to retire or step away from the sport. The charter system created a franchise plan that brought a real world market value to owning a NASCAR Cup Series team. The problem is that over the years NASCAR has manipulated the charter system in a way that opened the door for NASCAR to be seen as having created an illegal monopoly.
im talking about the next gen model.
“And that the cars and equipments are specified by NASCAR and mandated to be procured by a NASCAR designated source is not exactly a free-market arrangement that encourages participation and market competition.”
The teams wanted next gen. They didn’t want to keep 100s of chassis builders, body hangers, and fabricators on payroll.
Realistically, the only way a next gen model works is by doing it the way NASCAR is.
NASCAR could roll the rule book back to 2021 tomorrow, and the teams would be massively worse off.
The charter system is a whole different argument. And i hope it is found to be anti-competitive like the judge alluded too.
Well, look at Modifieds. Numerous chassis suppliers, one engine supplier. What do owners complain about? The &^%$*# NASCAR SPEC engine that was supposed to provide parity and cost savings to improve car counts. How’d that work out? NASCAR created a monopoly for the engine market, failed to reduce costs, failed to produce parity, failed to increase car counts.
The same engine parts can be bought for far less from other sources, but these parts would be illegal because they do not have the markings. MONOPOLY. And in creating this engine monopoly, a built engine market and supply base was annihilated. This impacts the racers that bought the used built engines.
Decades ago, Rusty Wallace was whining about how his cars, equipment and such are worthless and can only be resold for pennies on the dollar. This brought about the franchise or charter system, which allows an owner to buy a franchise, just like a fast food joint. That charter can hold value and then be sold and recouped. Franchise owners revolt once in a while because of the restrictions, terms and conditions of the contract. The host, such as McDonalds, Burger King, KFC, Five Guys, NASCAR, Dominoes, KWIK DRY, Taco Bell, Chick-fil-A, Dunkin’ etc. have an obligation to promote and support the intrinsic value of the product, which enhances the values of the charters.
It’s funny how players in the lawsuit are requesting that other owners, members, industry participants/execs, etc. not be allowed to be present in the courtroom while they are testifying. There’s gonna be lots of dirty laundry aired out, and the public won’t have access to it, to see how controlling the charter system really is, and how much animosity exists.
I mean, the arrogance and audacity for NASCAR to tell the court that they do not control a monopoly because the teams are free to go compete at Indy, F1 and other series was profoundly stupid.