Superstar Racing Experience Emerges as Key Factor in NASCAR Antitrust Proceedings

Charlotte, NC – The antitrust trial brought forth by 23XI Racing and Front Row Motorsports against NASCAR has unexpectedly placed the now-defunct Superstar Racing Experience (SRX) at the forefront of jury deliberations. Over four days of testimony, attorneys for the plaintiff teams have meticulously woven SRX into their narrative, suggesting that NASCAR’s leadership exhibited tangible reactions to the series’ emergence as a potential competitor. This line of questioning is crucial as the trial seeks to determine whether NASCAR has leveraged its dominant position in premier stock car racing to stifle competition and disadvantage its own teams.

Jeffrey Kessler, lead counsel for 23XI and Front Row, has systematically questioned NASCAR executives, including President Steve O’Donnell and EVP of Strategy Scott Prime. Their testimonies revealed a growing internal awareness within NASCAR regarding SRX, particularly during the summer of 2022, a period that coincided with critical negotiations for the extension of the sport’s charter agreement.

The core of the plaintiffs’ argument hinges on the assertion that NASCAR’s actions, including modifications to track agreements and the scheduling of specific events, were not merely coincidental but reactive measures designed to preempt or neutralize perceived threats to its market control. The prominence of SRX in these discussions underscores the plaintiffs’ strategy to demonstrate NASCAR’s awareness of alternative racing avenues and its proactive measures to maintain its hegemony.

Internal communications presented as evidence highlight NASCAR’s concerns that SRX, initially conceived as a series featuring retired legends and local talent, began to blur the lines with NASCAR’s core product. By its second season, SRX increasingly featured active Cup Series drivers, and its third and final year in 2023 saw prominent figures like Brad Keselowski compete full-time, with cameo appearances from stars like Kyle Busch, Chase Briscoe, and Chase Elliott.

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"I recall we all became concerned with the look and the feel of the series, yes," O’Donnell stated under oath when questioned by Kessler. While O’Donnell acknowledged that the existing charter agreements (2016-2024) did not explicitly prohibit drivers from participating in other series, the involvement of team owners, such as Denny Hamlin and Justin Marks, who also competed in SRX, raised significant alarms within NASCAR. The series’ co-founding by Tony Stewart, a then-charter-holding team owner, further amplified these concerns.

An internal email chain from June 29, 2022, between Prime, O’Donnell, Ben Kennedy, and then-NASCAR Chairman and CEO Brian France (referred to as Phelps in the email) illustrates the depth of NASCAR’s apprehension.

In the exchange, O’Donnell expressed dismay upon learning that Justin Marks was participating in SRX, to which Ben Kennedy responded, "Saw that too. Disappointing." Prime articulated a broader concern: "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."

The discussion escalated with O’Donnell noting the presence of prominent NASCAR figures in SRX, including FOX broadcaster Darrell Waltrip, Stewart, and Chase Elliott, and questioning their perceived disregard for their NASCAR careers. He voiced suspicion about team co-owner Curtis Polk’s association with Michael Jordan over the same weekend, suggesting a potential broader strategic alliance. "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," O’Donnell wrote, ominously adding, "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 agreed, suggesting that without proactive measures, Dale Earnhardt Jr. might participate in SRX events at venues like North Wilkesboro and Bowman Gray Stadium in the following year. O’Donnell then proposed integrating these tracks into NASCAR’s own All-Star event, a suggestion Prime found promising.

France concluded the exchange with a stark comparison: "That’s the key – we need to have everyone understand that this could turn into LIV if we don’t play our cards right. We are smarter than they are – but part of the issue is they don’t have the facts and don’t seem to want to take the time to learn or maybe they just don’t care. It’s all about the money and feeling like they have been heard and are respected. The SRX thing is just baffling to me. Why don’t they get it? Oh, they do get it, and it’s a huge FU to us."

Following this internal dialogue, NASCAR subsequently added North Wilkesboro to its Cup Series schedule in 2023 and Bowman Gray in 2025. Furthermore, Speedway Motorsports (SMI), a major track owner, was reportedly blocked by NASCAR from scheduling an SRX date in 2024, a move attributed to contractual exclusion provisions. O’Donnell testified that NASCAR’s refusal was tied to its ongoing negotiations for new broadcast rights agreements. "SRX started to look like NASCAR, so we said no," he stated, adding that NASCAR aimed to "gain as much TV revenue for the teams and tracks as possible." This suggests NASCAR perceived SRX as a potential impediment to its lucrative media rights deals and a source of market confusion.

Further evidence of NASCAR’s strong stance against SRX emerged in a text exchange on February 1, 2023, between France and O’Donnell. France texted, "Oh great, another owner racing in SRX," to which O’Donnell replied, "This is NASCAR. Pure and simple. Enough. We need legal to take a shot at this." France’s response was unequivocal: "These guys are just plain stupid. Need to put a knife in this trash series." When pressed by Kessler, O’Donnell stated his request for legal review was because SRX "looked more and more like NASCAR."

The plaintiffs’ legal team has characterized the addition of Wilkesboro and Bowman Gray to the Cup schedule as anti-competitive behavior. O’Donnell, however, defended these decisions by referencing the long-standing relationship between NASCAR and the Bowman Gray Stadium promoters, and the fact that SMI approached NASCAR with the request for a Cup race at Wilkesboro, a track they own.

The closure of SRX was announced in January 2024, with the specific reasons remaining undisclosed. O’Donnell conceded that he "thinks about it every day" regarding the potential for breakaway series and that assessing such "adverse headwinds" is part of his role. His testimony also detailed concerns from March 2022, when team owners expressed that the existing charter model was "broken." Notes from a meeting revealed O’Donnell acknowledged the precarious financial state of teams, noting they could be "one lost sponsors away from going out of business."

Financial reports presented indicated that the cost per Cup Series car could reach $20 million per season, a figure O’Donnell stated he took at face value. The charter agreement at the time allocated 65% of broadcast rights revenue to tracks, 25% to teams, and 10% to NASCAR. During discussions, team representatives, including 23XI investor Curtis Polk, outlined key objectives: maximizing broadcast revenue, increasing competition, and implementing a spending cap.

Jeff Gordon of Hendrick Motorsports inquired if the France family was "open to a new financial model" to support teams, to which Ben Kennedy reportedly responded affirmatively. However, when questioned by Kessler, O’Donnell denied this, stating, "No."

Handwritten notes from O’Donnell dated February 14, 2023, expressed a desire for a younger demographic in future NASCAR leadership, suggesting that the "legacy mindset" within the NASCAR Board "inhibited growth." Despite attempts to mediate with the elder France, O’Donnell noted that 21 out of 22 "Amanda Chart issues" remained unresolved in NASCAR’s favor. Kessler characterized Jim France as a "brick wall" in negotiations, a description O’Donnell did not explicitly confirm but did not deny.

Throughout his testimony, O’Donnell maintained a consistent focus on his objective to "grow the sport," encompassing all stakeholders, including teams and fans, even if it meant confronting his superiors. He cited the France family’s directive not to hire "Yes People" as justification for his willingness to address broader issues within the sport.

NASCAR also presented evidence of its own significant investments and losses, including the estimated $55 million spent over three years on the Chicago Street Race, which O’Donnell stated was a strategic investment to secure Amazon as a broadcast partner. The sanctioning body also reported a $6 million loss on the Mexico City race, undertaken to satisfy Amazon’s interest.

The trial also involved the cross-examination of Bob Jenkins, owner of Front Row Motorsports. NASCAR attorneys attempted to challenge Jenkins’ financial claims, presenting discovery documents that indicated Front Row’s expenditure on a Cup car did not exceed $14 million, contradicting his testimony of a $20 million figure. Jenkins clarified that the $20 million represented an aggregate industry average. Further scrutiny involved the inclusion of a $1.2 million loss from his Truck Series team within the damages sought, which Jenkins conceded was an error.

The plaintiffs’ assertion that NASCAR’s final charter offer on September 6, 2004, constituted "take it or leave it" behavior indicative of a monopsonist was met with counter-evidence from NASCAR. Attorney Lawrence Buterman presented text messages from 2021 showing Jenkins employing a similar ultimatum with Denny Hamlin regarding a proposed merger between their teams. Jenkins, however, countered that Hamlin had alternative options, including purchasing charters from other struggling teams, rendering the comparison invalid.

The proceedings have also been marked by Judge Kenneth D. Bell’s concerns regarding the trial’s pace. Bell expressed dissatisfaction with the slow progress, noting the jury’s exposure to "redundancy" and urging witnesses to provide more concise answers. He warned of implementing a "chess clock" if the pace did not improve, emphasizing the need for both sides to acknowledge uncomfortable evidence and move forward. The judge also indicated that the trial, initially projected for two weeks, was likely to extend into a third, posing an unacceptable burden on the jury approaching the holiday season. NASCAR’s attempt to call Roger Penske out of order was denied, with Bell prioritizing the jury’s experience and the structured presentation of evidence.