A high-profile economist testified Monday that NASCAR should pay $215.8 million in damages to 23XI Racing and $148.9 million to Front Row Motorsports to account for its monopolistic behavior.<\/p>\n
Dr. Edward A. Snyder, who served as the dean of Yale\u2019s business school from 2011-19 and for 10 years before held the same position at the University of Chicago, shared his calculations as part of his extensive testimony on Day 6 of the trial pitting 23XI Racing \u2014 co-owned by Michael Jordan and NASCAR driver Denny Hamlin \u2014 and Front Row Motorsports against NASCAR.<\/p>\n
They were the only two of the 15 teams competing in NASCAR that refused to sign the organization\u2019s charter agreements last year, then they filed the antitrust lawsuit being heard in Charlotte, N.C.<\/p>\n
Snyder, a frequent witness in such high-profile trials, declared that NASCAR fits the description of a monopolist because the organization controls the tracks, the teams and the cars.<\/p>\n
\u201cThis is anti-competitive,\u201d Snyder said according to media reports. \u201cClear and simple.\u201d<\/p>\n
He added, according to The Athletic, \u201cTo me, as an economist, this situation bothers me. Team owners are building the car. They technically own the car, and it\u2019s their most important piece of equipment. But they cannot use it outside of NASCAR. That\u2019s anti-competitive.\u201d<\/p>\n
Snyder also insisted that NASCAR shortchanged its charter teams $1.06 billion over a four-year span that began in 2021. His calculations, in part, were based on his discovery that Formula One pays teams 45% of its revenue while NASCAR only shares 25%.<\/p>\n
NASCAR\u2019s legal team tried to undercut Snyder\u2019s testimony, in part, by responding that Snyder\u2019s 45% estimate for F1\u2019s payouts is incorrect.<\/p>\n
Snyder will continue his testimony on Tuesday in a trial that has not been progressing as quickly as Judge Kenneth D. Bell anticipated. He expected the trial to last two weeks, but the prosecution still has a handful of witnesses to go.<\/p>\n
\u2013Field Level Media<\/p>\n
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