NASCAR: Judge Orders Teams to Disclose Key Financial Data (2014-2024)

Federal Judge Orders NASCAR Teams to Hand Over Financial Data

A federal judge issued an order on Wednesday, requiring twelve NASCAR teams to provide eleven years of financial data to the racing series. This decision is part of an ongoing legal dispute, although with certain limitations on the information to be shared.

Judge Kenneth Bell, of the Western District of North Carolina, made this determination after hearing arguments from both sides. The magistrate noted that the requested information will allow NASCAR to access relevant details, while protecting the legitimate interests of the twelve teams involved. The teams had expressed concern that their private financial data could become public, which could affect the competitive balance.

Description: Michael Jordan and Denny Hamlin, owners of 23XI Racing, along with Front Row Motorsports, are the only two organizations out of a total of fifteen that did not sign a new charter agreement and are in a legal battle with NASCAR over the disclosure of financial records. According to the court decision, the teams must provide key data, including total revenue, total costs, and net profit and loss, from the year 2014. In addition, the teams and NASCAR were ordered to agree on the hiring of an independent accounting firm to manage the details, with payment to be made by NASCAR, and with a deadline of Friday.

Earlier this week, lawyers for twelve of the fifteen racing teams argued against the disclosure of their financial records in connection with the NASCAR antitrust lawsuit. These teams are not parties to 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 the “take it or leave it” offers for a new charter agreement last September. Charters are NASCAR’s version of a franchise model, where each guarantees entry into the lucrative Cup Series races and a stable revenue stream. Of the thirteen teams that did sign, 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 more permanent 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.