Federal Judge Orders NASCAR Teams to Disclose Financial Data
A federal judge issued an order compelling twelve NASCAR teams to hand over eleven years of financial information to the racing series. This decision is part of an ongoing legal dispute, but clear limits have been set on the information they must share. Judge Kenneth Bell, of the Western District of North Carolina, made the decision after hearing arguments from both sides. The judge stated that the information will allow NASCAR to obtain relevant data, while protecting the legitimate interests of the twelve teams. These teams had expressed concern about the possible public disclosure of their private financial details, which could affect the competitive balance.
Earlier this week, lawyers for twelve of the fifteen racing teams argued against the disclosure of their financial records as part of NASCAR’s antitrust lawsuit. These teams are not part of the lawsuit filed by 23XI Racing, owned by NBA Hall of Famer Michael Jordan, and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by businessman Bob Jenkins.
23XI and Front Row are the only two organizations out of fifteen that refused to sign a new proposal for a charter agreement last September. Charters are NASCAR’s version of a franchise model, where each charter guarantees entry into the lucrative Cup races and a stable revenue stream. Of the thirteen teams that signed, only Kaulig Racing has submitted the financial documents required by NASCAR as part of the discovery process. Teams have long argued that NASCAR is not financially viable and that they need a greater flow of revenue and a longer duration for charter agreements, which currently have expiration dates and can be revoked by NASCAR. Two years of negotiations ended last fall with the signing of thirteen teams, while 23IX and FRM chose to go to court.
