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The second day of the antitrust trial pitting 23XI Racing and Front Row Motorsport against NASCAR saw key figures from the sanctioning body take the stand, most notably Scott Prime, NASCAR’s Executive Vice President and Chief Strategy Officer. His testimony, often under scrutiny, aimed to clarify internal discussions and disagreements surrounding the proposed terms of the Cup Series charter system, a critical point of contention between NASCAR and its team owners.
Evidence presented during the proceedings, primarily in the form of unsealed private emails and text messages, suggested a rift within NASCAR’s senior leadership regarding the financial and operational concessions offered to teams. Executives including Prime, former COO Steve O’Donnell, and former President Steve Phelps, appeared to express reservations about the stringent terms favored by NASCAR CEO Jim France.
In one particularly revealing email, Prime acknowledged that team owners "have a point" in their negotiation demands. He cited his understanding that Formula 1 teams receive approximately 50% of their series’ overall revenue, a stark contrast to the 20-25% allocated to NASCAR Cup Series organizations. This disparity formed a cornerstone of the teams’ argument for greater financial participation and stability.
During his questioning by Jeffrey Kessler, the lead attorney representing the plaintiffs, Prime was confronted with an email where he stated, "We at NASCAR have all the leverage and the teams will almost have to sign whatever we put in front of them." This statement was presented as Exhibit A, underscoring the teams’ perception of NASCAR’s dominant position in the negotiations.
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Further illuminating the internal dynamics, a text message exchange from May 21, 2024, involving O’Donnell, Phelps, and Prime, was entered into evidence. The messages depicted significant frustration and a sense of futility regarding discussions with Jim France and other NASCAR leadership.
O’Donnell’s text initiated the exchange, detailing a conversation with Lesa France Kennedy, expressing that while the meeting was "productive" and the goal was to "move the needle," teams would not "get everything they want." He also indicated a directive to "just listened as she didn’t want to hear any opinions." O’Donnell then questioned the logic behind NASCAR’s positions, asking for an explanation of how they would "grow the sport and position us for a big rights renewal in the future."
Phelps responded with a blunt assessment: "Productive? Insanity. Look at the Amanda (Oliver, Chief Legal Officer) chart – zero wins for the teams." He continued, articulating a dire outlook: "The draft must reflect a middle position of we are dead in the water – they will sign them but we are fucked moving forward." Prime’s terse reply to this sentiment was: "The approach of ‘here is a bit more money, fuck off everywhere else’ is a bold strategy." O’Donnell concluded the exchange by noting Lesa Kennedy’s belief that they were "getting close," while lamenting that this approach was leading them towards a "comfortable 1996, fuck the teams, dictatorship, motorsport, redneck, southern, tiny sport."
When questioned about these messages, Prime expressed frustration with the meeting and regretted his language, characterizing it as a reflection of his difficulties in conveying his perspective to NASCAR’s senior leadership, particularly Jim France.
Prime argued that NASCAR’s board of directors did consider feedback and made some concessions, though the plaintiffs, 23XI and Front Row, contend these were minimal, amounting to securing "two or three" of thousands of requested items. When pressed on what significant benefits were offered, Prime cited "significant protections," a statement countered by the plaintiffs’ legal team, who maintain that core demands such as charter permanency, increased revenue share, and a genuine voice in decision-making remained unmet. Kessler’s rejoinder was direct: "You kept all the power."
A significant portion of Prime’s testimony focused on NASCAR’s alleged efforts to preempt the formation of rival racing series. Kessler presented emails from as early as 2020 where Prime expressed concerns about a breakaway series that "could demonstrate to team owners and drivers that there are alternatives," and the need to "avoid a CART/IRL scenario"—a reference to the divisive open-wheel split of the 1990s that significantly damaged the sport’s mainstream appeal.
The court heard how Prime and other NASCAR executives discussed implementing more extensive track exclusivity agreements with Speedway Motorsports (SMI) venues to prevent them from hosting competing series. An example cited was NASCAR’s prevention of the Superstar Racing Experience (SRX) from racing at SMI tracks, which were seeking revenue to offset debt.
When questioned about an email thanking Amanda Oliver for her assistance in drafting these exclusivity terms, Prime disclaimed detailed knowledge of the agreements, stating he primarily gathered data and presented it in PowerPoint format. His role as Vice President of Strategy and Innovation was highlighted, and Kessler seized on Prime’s assertion of limited understanding of track and exclusivity clauses, particularly in light of his compensation. When asked about his salary, Prime stated it was between $200,000-$250,000 at the time and is now $400,000. Kessler remarked, "That’s a lot for someone that just puts slides together for someone else," to which Prime responded, "That’s your opinion."
The trial revealed that NASCAR eventually instituted two-year exclusivity agreements, extending their impact for four years beyond the contract’s expiration. Prime had previously noted in an email that these shorter, single-year agreements left SMI "vulnerable to outside offers"—offers that could include a new series launched by Cup teams or entities like SRX. Prime’s defense was that these agreements were designed to protect valuable NASCAR-affiliated tracks from being acquired by entities like Amazon or Google for non-racing purposes.
The court also examined "Project Gold Codes," a NASCAR contingency plan that outlined strategies for operating Cup races internally in the event of a team boycott or failure to sign charter agreements for the 2025 Daytona 500. Prime characterized this as a "contingency plan." He further revealed discussions about proactively engaging with the Saudi Private Investment Fund to prevent them from forming partnerships with alternative racing entities like the Race Team Alliance or SRX.
Looking ahead, it was confirmed that Richard Childress, owner of Richard Childress Racing, is slated to testify. This is particularly noteworthy given Childress’s prior threat of legal action over texts produced in discovery that reportedly contained disparaging remarks about him by NASCAR executives.
Additionally, Judge Kenneth D. Bell addressed a request from a non-party team owner who sought to have their financial testimony sealed due to concerns about protecting proprietary information. Judge Bell indicated his reluctance to close court proceedings to the public, citing the risk of a mistrial. Instead, he instructed legal counsel to present financial details in a generalized manner to safeguard sensitive information that has not been fully disclosed in discovery. The witness list for potential testimony includes prominent owners such as Heather Gibbs, Rick Hendrick, Cal Wells, and Roger Penske, with the individual in question being described as someone who supports the charter system but has incurred significant financial losses under the current framework.
The trial is scheduled to resume on Wednesday morning with the cross-examination of Scott Prime by NASCAR’s legal team.
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