NASCAR Trial: Bob Jenkins Details Contentious charter Negotiations, Disputes “Anti-Competitive” claims
Wilmington, DE -โข November 29,โฃ 2024 – Bob Jenkins, co-plaintiff alongside Michael Jordan โฃin the lawsuit against NASCAR, โtestified today, November 29th, offering further insight into the fraught negotiations surrounding the sport’s charter system.Jenkins’ testimony on Day 3 of the trial centered on the period leading up to NASCAR’s September 6, 2024, offer to teams, which Jenkins described asโ feeling like “a gun to yourโข head,” though he clarified he didn’t personally favor that framing.
Jenkins, a key figure in 23XI Racing’s formation, detailed a perceivedโค impasse with NASCAR Chairman and CEO jim โขFrance, โidentified asโข a defendant in the suit. According to Jenkins, France was the driving force behind a hardline stance. “that’s what Jim wanted,” Jenkins stated,referring to the September 6thโ offer. He contrastedโ this โwith his own and then-NASCAR COO Steve O’Donnell’s efforts to reach a compromise. “Can say (then-COO Steve O’Donnell) and I put our best foot forward, but it was a brick โwall,” Jenkins wrote in aโ text message presented as evidence, to which a recipient,โ Phelps, responded, “Super disappointing.”
The testimony also โshed light on NASCAR’s “goodwill provision” withinโข charter agreements, which prevents โeven โminority team โฃowners (holding as little as 10%) from owning โฃor investing in competing stock car series. Jenkins’ attorney,โ Kessler, characterized this as a “non-compete” โคagreement, arguing it was “anti-competitive will,” a description Primeโ disagreed with, stating, “I do [think it’s goodwill].” NASCAR’s legal team โobjected to kessler’s characterization, and the judge sustained the objection. Kessler further pressed the point, highlighting aโข clause preventing charter teams from joiningโข a competitor series for over a year even after forfeiting their charter.
Jenkins also addressed concerns regardingโฃ intellectual โproperty protection for NASCAR’s “Next Gen” car. He referenced aโฃ strategy document outlining the risk of a “copycat โขseries” without such protections. However, Jenkins testified that NASCAR ultimately implemented standard IP practices by prohibitingโข teams from using the Next Gen โcar in any series outside of NASCAR, a measure โคhe said the teams understood โand accepted. “They understood the Next Gen car design and all the protections that went with it,yes,” jenkins affirmed.
Underโฃ cross-examination, Jenkins refuted the notion that earlierโฃ communications indicated ill intent โฃfrom NASCAR. He also stated that โthe teams’ demand for โข$20 million โper car โคin revenue payouts was financially unsustainable, stating it would “put NASCAR bankrupt.”โ He clarified his earlier testimony regarding attempts to “lock up” tracks, explaining it simply involved securing the schedule for the following season, not preventing access for competing series.โ Jenkins emphasized the impracticality of โpermanent โขcharters, stating, “You can’t negotiate a deal and have the exact same deal forever. You can’t write a contract today that’s going to last forever.”
The โtrial, which centers on claims that NASCAR improperly interfered with โthe sale of charters and stifled competition, continues with further testimonyโ expected to illuminate the complex dynamics between the sport’s governing body and its โฃteam owners. A charter grants a team guaranteed entry into every NASCAR Cup Series points race and a minimum revenue share.
