{"id":334393,"date":"2025-12-09T10:54:07","date_gmt":"2025-12-09T10:54:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/334393\/"},"modified":"2025-12-09T10:54:07","modified_gmt":"2025-12-09T10:54:07","slug":"expert-slaps-mammoth-364-7-million-price-tag-on-michael-jordans-war-against-nascar","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/334393\/","title":{"rendered":"Expert Slaps Mammoth $364.7 Million Price Tag on Michael Jordan\u2019s War Against NASCAR"},"content":{"rendered":"

An economist testifying in Michael Jordan\u2019s antitrust case<\/a> argued that NASCAR<\/a> faces $364.7 million in damages owed to the two teams, 23XI Racing and Front Row Motorsports, suing over revenue-sharing.<\/p>\n

Economics professor Edward Snyder, a former member of the U.S. Department of Justice\u2019s antitrust division and an expert witness in more than 30 notable cases, including\u00a0the NFL<\/a>\u2019s \u201cDeflategate\u201d involving the New England Patriots<\/a>, testified on Monday. He offered three reasons he believes NASCAR is acting as a monopoly.<\/p>\n

How Does NASCAR Owe So Much Money to FRM and Michael Jordan\u2019s 23XI?<\/p>\n

Snyder used a complex financial formula, incorporating profits, reduced market revenue, and the 2021\u201324 revenue losses for 23XI Racing and Front Row Motorsports, to determine his damages estimate.<\/p>\n

He compared this to what he said is a 45% revenue share in Formula One, contrasting it with the 25% share teams received under NASCAR\u2019s charter model in 2016.<\/p>\n

The lawsuit challenges the 2025 charter agreement<\/a> presented to teams in September 2024, with a same-day deadline to sign the lengthy 112-page contract.<\/p>\n

Teams argue that after more than two years of strained talks with NASCAR, the deal was nothing more than a \u201ctake-it-or-leave-it\u201d demand they accepted \u201cwith a gun to their head.\u201d<\/p>\n

Only two teams rejected the new charter deal: 23XI Racing, led by co-owners Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins.<\/p>\n

Snyder said his review showed that NASCAR exerts monopolistic control, with teams having no alternative marketplace for their services. He added that the series dictates everything from \u201cthe tracks\u201d to \u201cthe teams and the cars.\u201d<\/p>\n

Snyder repeatedly pointed to the exclusivity agreements that NASCAR signed with racetracks after launching its charter system.<\/p>\n

These deals bar tracks that host NASCAR events from working with rival racing series. Before these long-term contracts, the organization operated on one-year agreements with its tracks.<\/p>\n

Snyder\u2019s calculation, which assumed each team operated with two charters until buying a third in late 2024, showed 23XI Racing is owed $215.8 million and Front Row Motorsports is owed $148.9 million.<\/p>\n

He added that all 36 chartered teams were shorted $1.06 billion by NASCAR from 2021 to 2024. With $2.2 billion in assets, a $5 billion equity value, and an investment-grade credit rating, Snyder testified that NASCAR gives the France family the flexibility to respond to rival series the way the PGA did against LIV Golf, \u201cgetting creative\u201d to generate new revenue for its golfers.<\/p>\n

Snyder testified that from 2021 to 24, NASCAR posted $250 million in annual profits, while the France family received $400 million in distributions.<\/p>\n

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