Race Teams Explored Ambitious International Expansion and Unconventional Venues, Court Documents Reveal

Unsealed documents filed in the ongoing antitrust lawsuit, 23XI Racing and Front Row Motorsports v. NASCAR, scheduled to commence on December 1, offer a detailed look into the Race Team Alliance’s (RTA) explorations of independent racing ventures during 2022 and 2023. These discussions involved plans for exhibition races featuring Cup Series drivers at a variety of unorthodox locations, including the Sultanate of Oman, Mexico City, New Orleans, Downtown Nashville, and the historic Churchill Downs racetrack.

The RTA, an organization representing the collective business interests of NASCAR Cup Series teams, engaged in these strategic discussions as a dual approach to enhancing the intellectual property of its member teams and leveraging a more favorable negotiation position with NASCAR regarding the crucial charter extension.

Jonathan Marshall, executive director of the RTA, articulated a bold vision for stock car racing’s global reach, stating in unearthed communications, "The world is ready for Stockcar racing." This sentiment underscored the RTA’s ambition to diversify and expand the sport’s footprint beyond its traditional North American confines.

The context for these explorations is firmly rooted in the high-stakes negotiations between the race teams and NASCAR concerning the future of the charter system. The charter, a foundational element of the modern Cup Series, guarantees teams a starting spot in every race and a share of the purse, among other benefits. The RTA’s pursuit of independent racing initiatives can be interpreted as a strategic maneuver to demonstrate their capacity for independent operation and to exert pressure on NASCAR to concede to their demands during charter extension talks.

Related News :

In an email exchange involving RTA founder Rob Kaufman, Trackhouse co-owner Justin Marks, and RFK Racing president Steve Newmark, Marshall sought to gauge the strategic value of these independent ventures. He questioned, "What is everyone’s take on whether we gain leverage by doing this still? If there are productive conversations happening with NASCAR, does pursuing this still make sense to the (Team Negotiating Committee)?"

Rob Kaufman, a prominent voice in these discussions, expressed a strong conviction in the necessity of pursuing these independent racing events, irrespective of ongoing NASCAR negotiations. He wrote, "Guys, my 2cts…Are we serious or not? Justin (Marks) is 100% spot on. We think that merely ‘feigning’ a move will get Uncle Jim (France) to change the deal, we are kidding ourselves. I have spoken to 5 of the senior NASCAR team principals in the past week and they all say one thing — they not budge unless they feel they have to concede something material to save the TV deal. NASCAR believes the teams will fold."

Kaufman continued to advocate for direct action, stating, "Regardless of the position of NASCAR, I strongly believe the Teams SHOULD do an exhibition race. We negotiated hard to get this right, and it is 100% within the current charters. … This is doable. Even if things were going right on the Daytona discussions, it’s a vert strong brand building item, as well as it should make money. Lots of potential if done right. Don’t squander this opportunity." He further pressed the RTA’s Team Negotiating Committee leaders with the question, "are we playing to win, or just playing?"

The envisioned independent racing series involved a cadre of influential figures within the sport. Among those participating in these strategic dialogues were Brett Frood, former president of Stewart-Haas Racing; Ray Evernham, former co-owner of the Superstar Racing Experience (SRX); and Steve Lauletta, president of 23XI Racing. Justin Marks, in his capacity with Trackhouse Entertainment Group, was also a key participant.

Justin Marks proposed a particularly ambitious concept: utilizing Trans-Am Series TA2 cars for an event in Oman. The plan included leaving the race car inventory in the Sultanate, with the intention of fostering a local racing culture among Omani participants following the departure of Cup Series stars.

Beyond the Trans-Am TA2 platform, the RTA also considered the deployment of Late Model stock cars or a proprietary car designed and manufactured by Ray Evernham’s team. The TA2 car, known for its robust construction and road-racing capabilities, shares fundamental chassis geometry with Super Late Model racing cars.

The prospect of developing a proprietary car presented the RTA with the opportunity to directly own the intellectual property (IP). This ownership would facilitate future growth, replication, or continuation of the series in different regions, with a pre-established business plan for ongoing support.

Ray Evernham estimated the cost of designing and building a prototype of such a proprietary car to be in the range of $350,000 to $450,000, with subsequent mass production planned. He outlined a timeline of 12 to 16 months to establish a complete racing series for Omani participants.

Evernham’s proposed operational model for Oman mirrored that of the SRX series. This involved contracting with a chassis builder to produce rolling chassis according to specific designs, with an in-house team responsible for assembly and maintenance. This same team would also manage service and repair of the cars and provide training to local Omani personnel. Evernham emphasized the importance of delivering a "quality product that would look and sound like a professional race car."

Potential venues for these Omani races were identified within the capital city of Muscat. Options included street circuits, drawing parallels to the iconic Monaco Grand Prix, or utilizing the Sultan Qaboos Stadium, a concept similar to the temporary circuit established at the Los Angeles Memorial Coliseum for NASCAR’s Clash event.

However, Steve Lauletta expressed skepticism regarding NASCAR’s willingness to share proprietary information about the Coliseum setup. When asked by Marshall about obtaining details on the "build-out/tear-down" of the Coliseum, Lauletta responded, "You are 100% correct in that we will get zero information from NASCAR about the Clash. I think we need to find other options with my first thought being the people thar run Race of Champions or other temporary circuits."

Lauletta’s perspective highlighted the potential for creating entirely new racing leagues, especially for a "winter series" in locations like Oman, Dubai, Qatar, and Saudi Arabia, leveraging the stadiums in those regions.

Whether viewed as a strategic leverage tactic or a genuine endeavor to forge an international series built upon the RTA’s collective IP, Evernham approached the technical aspects with significant dedication. His planning encompassed car design, track layout, and a points system.

Evernham envisioned a model where the RTA or a designated entity would retain full ownership of the IP. Local participants in Oman would purchase replacement parts and vehicles from the ownership company, with the potential for a franchise system to facilitate expansion.

He proposed a detailed plan that would necessitate a site visit and cultural survey in Oman to refine the proposal further. Evernham characterized this as a "thought starter for the team" to be developed as feedback was received and more information was gathered.

Justin Marks indicated that he had engaged in discussions with the Omani Minister of Sport and Youth on December 12, addressing financial considerations for an exhibition race featuring Cup Series drivers.

Furthermore, the logistics of transporting race cars were explored. Marks noted, "The cars are a different story. If we can put an estimate on the prep of a Gen-6 car will cost us, I can have someone work on a basic cost estimate for getting 20 of them with support infrastructure on a cargo plane to the Middle East." This indicated a concrete consideration for fielding approximately 20 Gen-6 cars for a potential Middle Eastern stock car series.

The RTA’s independent exhibition series concept spanned four distinct geographic areas. Justin Marks spearheaded discussions concerning Nashville and Oman, which Marshall identified as "the two most promising at this point." Additionally, the Wasserman Group was involved in exploring possibilities in Mexico City and at Churchill Downs.

NASCAR did become aware of the RTA’s independent racing explorations. In December 2022, the sanctioning body reportedly withdrew editorial support for the Snowball Derby, a prestigious grassroots Super Late Model race. The Snowball Derby was subsequently broadcast on Racing America, the RTA’s proprietary media platform.