Day 3 of NASCAR antitrust trial reveals details behind charter system

CHARLOTTE, N.C. (QUEEN CITY NEWS) — The federal antitrust trial between NASCAR and two racing teams is picking up speed as testimony sheds light on why the sport shifted to a charter system nearly a decade ago.

Scott Prime, NASCAR’s executive vice president of strategy, spent most of Wednesday on the stand explaining the history behind the charter system, which guarantees teams entry into races. Prime called the 2016 launch of the system a “transformation of the industry,” saying it was designed to help the sport grow and stabilize sponsorships for teams that previously risked missing races.

Plaintiffs 23XI Racing — co-owned by NBA legend Michael Jordan — and Front Row Motorsports argue the system operates like a noncompete clause. Their attorney, Jeffrey Kessler, pointed to language in the 2016 agreement requiring teams that leave or form a competing series to sit out for 12 months. Kessler also argued teams raised concerns as early as 2019 that the agreement wasn’t working.

In late testimony, Front Row Motorsports owner Robert Jenkins said he initially believed charters would benefit teams but now sees challenges. He testified that standardized “Next Gen” cars helped level the playing field but increased costs when parts need to be replaced. Jenkins said he has never made an operating profit and has lost millions. NASCAR’s defense countered by questioning Jenkins’ business decisions, including sponsorship arrangements tied to his family’s Long John Silver’s franchises.

The trial continues Thursday with more testimony expected.