{"id":325352,"date":"2025-12-04T18:29:10","date_gmt":"2025-12-04T18:29:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/325352\/"},"modified":"2025-12-04T18:29:10","modified_gmt":"2025-12-04T18:29:10","slug":"nascars-steve-odonnell-key-figure-in-charter-deals-takes-stand-on-day-4-of-trial","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/325352\/","title":{"rendered":"NASCAR\u2019s Steve O\u2019Donnell, key figure in charter deals, takes stand on Day 4 of trial"},"content":{"rendered":"<p>CHARLOTTE, N.C. \u2014 NASCAR president Steve O\u2019Donnell took the stand Thursday as the antitrust lawsuit against the league, brought by Michael Jordan\u2019s race team and one other, continued.<\/p>\n<p>O\u2019Donnell acknowledged he thought through a variety of options NASCAR\u2019s car owners could pursue after a contentious meeting with teams, which came at the height of conversation around the first season of LIV Golf \u2014 the Saudi-funded circuit that signed several top players away from the PGA Tour \u2014 in 2022.<\/p>\n<p>O\u2019Donnell, NASCAR\u2019s chief operating officer at the time, was worried teams could participate in a similar breakaway series of some kind, potentially building their own cars and partnering with rival track owner Speedway Motorsports, backed by a potential foreign investment.<\/p>\n<p>In part to counter that move, O\u2019Donnell presented various options to NASCAR\u2019s board of directors \u2014 including chairman and CEO Jim France, a co-defendant in the lawsuit \u2014 about partnering with Speedway Motorsports on multiyear sanctioning agreements, which ultimately included exclusivity clauses preventing other stock car series from racing at those venues.<\/p>\n<p>The exclusivity clauses also extended to independent tracks where NASCAR\u2019s premier Cup Series races and, for the first time, also included the tracks for lower-tier national series (then known as the Xfinity Series and Truck Series).<\/p>\n<p>O\u2019Donnell did not disagree when Jeffrey Kessler, the attorney for the two race teams suing NASCAR, Jordan\u2019s 23XI Racing and Front Row Motorsports, asked if NASCAR was a monopoly.<\/p>\n<p>But O\u2019Donnell said the teams could compete as \u201copen,\u201d non-charter teams if they did not like the proposed terms of NASCAR\u2019s charter agreement \u2014 which grants each team licenses to compete in every race with guaranteed purse money and the latest terms of which are <a href=\"https:\/\/www.nytimes.com\/athletic\/6850286\/2025\/12\/01\/nascar-michael-jordan-hamlin-23xi-trial-lawsuit-guide\/\" rel=\"nofollow noopener\" target=\"_blank\">at the center of this dispute<\/a>.<\/p>\n<p>Kessler argued \u201copen\u201d teams make far less than charter teams, which made such a decision unsustainable financially.<\/p>\n<p>The jury was shown O\u2019Donnell\u2019s notes from a March 2022 meeting with four team owner representatives, who told O\u2019Donnell and other executives the business model was broken for race teams, which he agreed with.<\/p>\n<p>O\u2019Donnell also agreed that teams could go out of business if they lost a sponsor and said he understood there needed to be a model that was fair for everyone.<\/p>\n<p>\u201cWe knew the industry was challenged,\u201d he said.<\/p>\n<p>Curtis Polk, 23XI\u2019s co-owner, told O\u2019Donnell of three goals in that meeting: Maximize television revenue from an upcoming media rights deal, create a more competitive landscape, and look at the cost model for teams, including a potential cost cap \u2014 a way of limiting spending to even the playing field. NASCAR agreed with those goals, O\u2019Donnell indicated.<\/p>\n<p>In that same meeting, Jeff Gordon \u2014 the four-time NASCAR champion who is now vice chairman of Hendrick Motorsports, one of the most powerful teams in the sport \u2014 asked NASCAR executive Ben Kennedy, who is a member of the France family: \u201cDo you believe the family is open to a new model?\u201d<\/p>\n<p>\u201cYes,\u201d Kennedy said.<\/p>\n<p>Ultimately, the charter deal presented to teams in September 2024 did carve out more money from media deals, but <a href=\"https:\/\/www.nytimes.com\/athletic\/5753700\/2024\/09\/08\/michael-jordan-nascar-23xi-front-row-charters\/\" rel=\"nofollow noopener\" target=\"_blank\">the teams said France was unwilling to budge on other key points<\/a>.<\/p>\n<p>\u201cAs it turned out, Jim France was not open to a new model, right?\u201d Kessler asked O\u2019Donnell.<\/p>\n<p>\u201cNo,\u201d O\u2019Donnell said.<\/p>\n<p>O\u2019Donnell is regarded as a NASCAR \u201clifer,\u201d having started with the company in 1996, eventually ascending to president eight months ago.<\/p>\n<p>Even before his most recent promotion, O\u2019Donnell has been an instrumental figure within the company on both the business and competition sides. He was heavily involved in the most recent charter negotiations that sparked the antitrust lawsuit after 23XI and Front Row <a href=\"https:\/\/www.nytimes.com\/athletic\/5751885\/2024\/09\/07\/nascar-charter-agreement-extension\/\" rel=\"nofollow noopener\" target=\"_blank\">elected not to sign NASCAR\u2019s take-it-or-leave-it offer<\/a> to extend. NASCAR\u2019s 13 other full-time teams signed the seven-year extension.<\/p>\n<p>O\u2019Donnell\u2019s testimony is expected to be a key piece of a trial that carries <a href=\"https:\/\/www.nytimes.com\/athletic\/6860388\/2025\/12\/04\/nascar-michael-jordan-trial-judge-warning-bob-jenkins\/\" rel=\"nofollow noopener\" target=\"_blank\">the potential to reshape the sport<\/a>, regardless of which party prevails. He was called to the witness stand by the suing teams as an \u201cadverse witness.\u201d<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-6860052 size-full\" src=\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/12\/GettyImages-2212089839-scaled.jpg\" alt=\"Denny Hamlin and Bob Jenkins\" width=\"2560\" height=\"1707\"  \/><\/p>\n<p>\n      23XI Racing owner Denny Hamlin, left, with Front Row Motorsports owner Bob Jenkins, co-plaintiffs in the suit. (Jeff Robinson \/ Icon Sportswire via Getty Images)<\/p>\n<p>Earlier Thursday, Front Row owner Bob Jenkins \u2014 a co-plaintiff in the case \u2014 wrapped up his testimony <a href=\"https:\/\/www.nytimes.com\/athletic\/6858844\/2025\/12\/03\/nascar-michael-jordan-trial-lawsuit-scott-prime-bob-jenkins\/\" rel=\"nofollow noopener\" target=\"_blank\">that began Wednesday<\/a>.<\/p>\n<p>NASCAR successfully got Jenkins to admit the $20 million cost per car figure used in this lawsuit \u2014 a figure that came from a survey of five NASCAR team owners representing a double-digit number of cars \u2014 did not apply to Front Row specifically.<\/p>\n<p>Jenkins\u2019 cost per car was closer to $14 million than $20 million in 2023, though Jenkins said his smaller team\u2019s goal was to run as leanly as possible.<\/p>\n<p>\u201cThe median cost is $20 million; the fact I can do it for less helps me reduce my costs,\u201d Jenkins said.<\/p>\n<p>NASCAR attorney Lawrence Buterman also showed how Jenkins had included some of his Truck Series team losses in the overall profit\/loss chart shown to the jury, which he said was misleading for a trial about the Cup Series. Jenkins acknowledged it but said the Truck team\u2019s impact on his bottom line was minimal.<\/p>\n<p>Buterman also painted Jenkins\u2019 complaints about NASCAR\u2019s \u201ctake it or leave it\u201d charter offer at 5 p.m. on a Friday night as hypocritical, noting Jenkins himself had used such a strategy with Denny Hamlin while the two pondered a possible merger between their teams in 2021.<\/p>\n<p>\u201cWe can\u2019t keep negotiating this forever,\u201d Jenkins wrote in a text to Hamlin. \u201c\u2026 That\u2019s why we decided we had to have a deal by 5 p.m. (Friday).\u201d<\/p>\n<p>Jenkins said it was \u201canother analogy that doesn\u2019t work\u201d because Hamlin had other options, unlike NASCAR pressuring teams into signing something as a monopolist, he said.<\/p>\n<p>\u201cThe gun was not to his head,\u201d Jenkins said.<\/p>\n<p>Jenkins is the sole owner of Front Row, a three-car team that\u2019s competed in the premier Cup Series since 2002. Front Row has held a minimum of two charters since NASCAR instituted the charter system beginning with the 2016 season.<\/p>\n<p>Front Row has actively participated in the charter market, frequently buying, selling and leasing them. Jenkins testified Wednesday that Front Row has made $12.5 million in profit from charter transactions; most recently, Jenkins purchased a charter last year for $29.5 million from Stewart-Haas Racing.<\/p>\n","protected":false},"excerpt":{"rendered":"CHARLOTTE, N.C. \u2014 NASCAR president Steve O\u2019Donnell took the stand Thursday as the antitrust lawsuit against the league,&hellip;\n","protected":false},"author":2,"featured_media":325353,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[446],"tags":[49,48,12716,634,82,575],"class_list":["post-325352","post","type-post","status-publish","format-standard","has-post-thumbnail","category-nascar","tag-ca","tag-canada","tag-motorsports","tag-nascar","tag-sports","tag-sports-business"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/325352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=325352"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/325352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/325353"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=325352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=325352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=325352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}