SRX's Shadow Looms Large as NASCAR Faces Antitrust Scrutiny in High-Stakes Trial

The antitrust trial involving 23XI Racing and Front Row Motorsports against NASCAR has, over four days of proceedings, revealed the significant, albeit defunct, Superstar Racing Experience (SRX) series as a central figure in the jury’s potential verdict. Attorneys for the plaintiff teams have systematically presented evidence suggesting NASCAR’s leadership perceived SRX as a genuine competitive threat and responded with strategic actions to counter it. This narrative is crucial to the core of the case, which seeks to determine whether NASCAR has leveraged its dominant position in premier stock car racing to stifle competition and disadvantage teams operating within its ecosystem.

During intensive questioning of NASCAR executives, including President Steve O’Donnell and EVP of Strategy Scott Prime, the plaintiffs’ counsel, Jeffrey Kessler, has meticulously constructed a case illustrating NASCAR’s heightened awareness of SRX’s potential to disrupt the established order. The focus on SRX stems from its emergence during a critical period of negotiation for the charter agreement extension between NASCAR and its teams in the summer of 2022. As NASCAR grappled with the terms of this pivotal agreement, the specter of teams and drivers potentially defecting to or participating in a rival series, such as SRX, became a tangible concern.

NASCAR’s apprehension regarding SRX intensified as the series, initially conceived in 2021 as a platform for racing legends on a mix of dirt and paved short tracks, began to evolve. By its second season, SRX races increasingly featured active Cup Series drivers. The 2023 season saw notable participation from Brad Keselowski throughout the year, alongside cameo appearances from prominent figures like Kyle Busch, Chase Briscoe, and Chase Elliott. This shift blurred the lines between SRX and NASCAR’s core product, raising alarms within NASCAR’s executive ranks.

Steve O’Donnell, under oath, acknowledged this growing concern: "I recall we all became concerned with the look and the feel of the series, yes." While the existing 2016-2024 charter agreement did not explicitly prohibit drivers from participating in other series, O’Donnell highlighted that the involvement of team owners, such as Denny Hamlin and Justin Marks, as well as the co-founding by Tony Stewart, a then-charter holder, amplified NASCAR’s anxieties. A conversation with Brett Frood, then-president of Stewart-Haas Racing, temporarily assuaged these concerns by emphasizing SRX’s initial intent to differentiate itself from NASCAR and avoid featuring its drivers. However, O’Donnell noted that the reality evolved differently.

Related News :

The internal deliberations within NASCAR regarding SRX were laid bare through a series of discovered communications. A June 29, 2022, exchange between Scott Prime, Steve O’Donnell, Ben Kennedy, and presumably NASCAR Chairman and CEO Jim France (referenced as Phelps in some communications, though this may be an error and Phelps is likely a distinct individual in the communications, or a nickname for France) revealed deep-seated worry.

In one particularly revealing exchange, O’Donnell questioned, "Justin Marks is racing SRX?" Ben Kennedy responded, "Saw that too. Disappointing." Prime articulated the sentiment of disregard for the broader implications, stating, "They just don’t get it. I’m sure its cool for Justin to go get behind the wheel but there’s no regard for the bigger picture. And maybe that’s on us for not giving them that incentive, I don’t know. But you’ve got Marks, Chase (Elliott), Tony (Stewart) and (Ryan) Blaney racing on a network that competes against our rights holders. They outrated (on television) Xfinity and Trucks last weekend; it isn’t some local dirt track stuff."

O’Donnell’s response further underscored the perceived betrayal and strategic implications: "Actually you have one of the voices of FOX in Waltrip, an owner of Cup cars in Stewart, our most popular driver for years and one of our champs fathers etc. This is exhibit ‘a’ that nobody gives a shit about what got them their careers. Pay em some money and they are all in. The guy who cried about safety every single day is in a box car without SAFER Barriers and not a care in the world. And by the way, who does Curtis (Polk, 23XI co-owner) have hanging with (Michael Jordan) over the weekend in Nashville? Not Ben, not me or (Scott) Prime or anyone – Marty Smith from ESPN. Coincidence? Lots to get our arms around but sadly any ‘goodwill’ seems to be lost. So smiles all around but behind the scenes we scheme and we win. Wait until (Dale) Jr. says he is running an event. Matter of time. They will go to North Wilkesboro with Jr. if we are not careful. We need to be the first back."

Prime’s agreement was swift: "Agreed – North Wilkesboro and Bowman Gray next year with Jr and friends if we don’t make moves." This exchange directly correlates with NASCAR’s subsequent scheduling decisions, including the addition of North Wilkesboro and Bowman Gray to the Cup Series calendar in subsequent years, which the plaintiffs argue were retaliatory measures.

The concerns extended to contractual agreements. Speedway Motorsports, a prominent track owner, reportedly sought to include an SRX date in its 2024 schedule for financial reasons. However, NASCAR reportedly blocked this, citing exclusion provisions in its track agreements, preventing SM from scheduling the SRX event. O’Donnell explained this decision by stating that NASCAR was in the midst of negotiating new broadcast rights agreements, and SRX’s increasing resemblance to NASCAR created market confusion and potentially hampered these crucial negotiations. He emphasized that, during this period, all stakeholders should have been singularly focused on maximizing NASCAR’s broadcast revenue.

Further evidence of this sentiment emerged in a February 1, 2023, text exchange between Phelps and O’Donnell:

Phelps: Oh great, another owner racing in SRX
O’Donnell: This is NASCAR. Pure and simple. Enough. We need legal to take a shot at this.
Phelps: These guys are just plain stupid. Need to put a knife in this trash series.

When questioned by Kessler about his instruction to involve legal counsel, O’Donnell stated, "I thought it looked more and more like NASCAR." His response to whether he wanted SRX stopped was measured: "I just wanted legal to take a look at it."

Regarding the introduction of North Wilkesboro and Bowman Gray to the Cup Series schedule, Kessler posited this as anti-competitive behavior. O’Donnell, however, defended the moves, citing the long-standing relationship with the Bowman Gray Stadium and the desire to acquire the lease from the founding family. He also noted that Speedway Motorsports approached NASCAR with a request for a Cup race at the owned North Wilkesboro track, a request that was subsequently granted. Kessler countered by emphasizing that these scheduling decisions followed the internal discussions and text exchanges explicitly linking them to countering the SRX "threat."

SRX ultimately ceased operations, announcing its closure in January 2024, with the precise reasons remaining undisclosed. O’Donnell, however, testified that the possibility of a "breakaway series" remains a constant consideration, and assessing such "adverse headwinds" is integral to his role. His testimony also revealed concerns voiced in March 2022, following an initial meeting with team owners regarding charter negotiations, that teams might form or join a competitor series. This led to the implementation of more stringent non-compete clauses in track agreements, which O’Donnell asserted were primarily for scheduling purposes, despite discovered emails suggesting a more expansive intent. The application of these clauses, particularly against SRX racing at a Speedway Motorsports facility, is a key point of contention. O’Donnell maintained that the clauses applied if SRX "looked like it infringed upon our IP."

The extent of NASCAR’s concern was further illuminated by discussions about teams potentially selling their charters to Liberty Media, the owner of Formula 1, or establishing a mid-week series. The precedent set by LIV Golf’s challenge to the PGA Tour’s dominance also contributed to a palpable sense of unease within NASCAR circles.

O’Donnell Expresses Support for Teams Amidst Financial Challenges

During the trial, NASCAR President Steve O’Donnell also provided testimony regarding his interactions with team owners, particularly concerning the charter negotiations. Notes taken during a 2022 meeting, the first of its kind ahead of the charter agreement discussions, indicated O’Donnell’s acknowledgment of the "broken" current model for competitors. His notes explicitly stated, "the business model is broken for the teams," reflecting an understanding of the significant financial pressures, including estimated car costs of $20 million per entry per season.

At the time of these discussions, the charter agreement allocated 65% of broadcast rights revenue to tracks, 25% to teams, and 10% to NASCAR. Curtis Polk, an investor in 23XI Racing and chairman of the eventual Teams Negotiating Committee, outlined three primary team objectives: maximizing broadcast rights revenue, increasing competition, and implementing a spending salary cap. Jeff Gordon of Hendrick Motorsports inquired if the France family, NASCAR’s ownership, was open to a new financial model to support teams, to which Ben Kennedy reportedly responded affirmatively. However, when questioned by Kessler, O’Donnell stated this was not true.

By February 14, 2023, O’Donnell expressed in a handwritten note his hope for a "younger" future leadership for NASCAR, citing the "legacy mindset" within the NASCAR Board as an impediment to growth. Despite his efforts to advocate for teams, even in conversations with Jim France, the negotiations proved difficult, with many proposed changes favoring NASCAR. Kessler characterized Jim France as a "brick wall in the negotiations," a description O’Donnell did not directly confirm but acknowledged the challenges.

Throughout his testimony, O’Donnell maintained a focus on his overarching responsibility to grow the sport for all stakeholders, including bosses, teams, and fans. He asserted that NASCAR frequently incurs significant financial losses in its pursuit of growth, citing the three-year investment of $55 million in the Chicago Street Race as a strategic move to secure Amazon as a broadcast partner. Similarly, a reported $6 million loss in Mexico City was attributed to its importance to Amazon, which contributed an additional $1 million to the race purse. The specifics of these losses, particularly the $5 million+ figure for Mexico City beyond logistics, remained somewhat unclear during questioning.

Jenkins Under Scrutiny for Financial Discrepancies

The trial also featured the cross-examination of Bob Jenkins, owner of Front Row Motorsports. NASCAR attorneys attempted to portray Jenkins as misrepresenting FRM’s financials by using figures from his other businesses. While Jenkins testified that Cup Series cars cost $20 million per car to race, NASCAR counsel Lawrence Buterman presented discovery documents indicating FRM’s highest expenditure on a Cup car was $14 million. Jenkins clarified that the $20 million figure represented an aggregate cost across multiple teams, with his own operation achieving lower costs. Buterman also highlighted that Jenkins included a $1.2 million loss from his Truck Series team in his damages claim, a claim Jenkins conceded should not have been included as it was unrelated to the lawsuit’s focus on the Cup Series charter system.

A central argument of the plaintiffs is that NASCAR’s "take it or leave it" final charter offer on September 6, 2024, demonstrated monopolistic and anti-competitive behavior. However, Buterman introduced evidence of Jenkins employing a similar tactic in 2021 with Denny Hamlin during discussions for a merger between their teams. A text message from Jenkins to Hamlin stated, "we can’t keep negotiating this forever…why we decided we had to have a deal by 5 p.m." Jenkins refuted the analogy to track exclusivity clauses and charter goodwill provisions, arguing that Hamlin could have acquired charters from other available teams, such as Starcom or Rick Ware Racing, indicating a degree of market choice. He also explained his deadline to Hamlin was due to Ford and Roush needing clarity on his potential move to Toyota’s engine program.

Judge Urges Expedited Proceedings Amidst Trial Pace Concerns

The trial’s progression faced scrutiny from Judge Kenneth D. Bell, who expressed concern over the slow pace, with only three witnesses presented over three days. "I get the impression that this is not moving along the way we all would like it to," Bell stated. While hesitant to implement a chess clock, he urged witnesses to answer questions more directly and efficiently, advising both sides to acknowledge "uncomfortable texts and emails for both sides" as simply "a bad look and get on with it." Bell warned that he would intervene if the pace did not improve, citing the jury’s exposure to "redundancy" and a lack of clear narrative.

NASCAR’s intended witness, Roger Penske, was slated to testify on Monday, but his availability created scheduling conflicts. NASCAR’s lead attorney, Chris Yates, requested Penske testify out of sequence, which Kessler objected to, citing disruption to his planned narrative. Judge Bell sided with Kessler, emphasizing that federal trials are inherently inconvenient and that the jury, with the holidays approaching, should not face an extended commitment. He indicated that a two-week trial now extending into a third week would be "unacceptable" and could lead to significant dissatisfaction among the jurors.

💬 Tinggalkan Komentar dengan Facebook

Author Profile

rifan muazin

Latest entries

Nascar CupDecember 26, 2025SRX’s Shadow Looms Large as NASCAR Faces Antitrust Scrutiny in High-Stakes Trial
Nascar CupDecember 26, 2025Landmark Settlement Reached: NASCAR, 23XI Racing, and Front Row Motorsports Forge Path to Stability and Growth
Nascar CupDecember 26, 2025NASCAR’s Landmark Settlement: 23XI Racing and Front Row Motorsports Forge New Path Forward
Nascar CupDecember 26, 2025NASCAR Icon Greg Biffle and Family Perish in Tragic Aviation Accident Near Statesville

Or check our Popular Categories...

Or check our Popular Categories...