NASCAR chairman Jim France stands firm on charter stance, citing parents' advice

NASCAR, the largest motorsports series in the United States, was founded in 1948 by Bill France Sr. and remains privately owned by the Florida-based France family. Jim France said he was raised with two core principles passed down from his parents.

His mother, credited with helping her husband build NASCAR from nothing, told her two sons to always pay their bills. Bill France Sr. advised them to “do what you say you're going to do.”

It was those two principles that led to France's refusal to budge on permanent charters in the 2025 revenue-sharing agreement.

“I've just seen so much change over the years and things are changing at a fast pace and I don't know how to put something in place — I don't know how we could come to an agreement that covers forever,” he testified.

He later tied it directly to his parents' advice.

“I don't have a sightline for the future and I don't feel comfortable making a promise I can't keep forever,” he testified.

That thinking aligns with Tuesday testimony from NASCAR Commissioner Steve Phelps, who gave NASCAR's version of the chaotic Sept. 6, 2024, final agreements presented to teams late that Friday afternoon with an end-of-day deadline to sign the 112-page document or forfeit their charters.

Phelps testified the delay in sending the final drafts was because France had promised Roger Penske, owner of Indianapolis Motor Speedway, IndyCar and teams in multiple racing series including NASCAR, that France would personally speak to Penske before the agreements were delivered. France tried to call Penske several times that day and Phelps testified that Penske didn't answer.

It wasn't until after the two had finally spoken that the charters were sent to teams, at close to 5 p.m., with a midnight deadline.

“Jim is a man of his word,” Phelps testified.

23XI Racing, which is owned by basketball Hall of Famer Jordan, three-time Daytona 500 winner Denny Hamlin, and Jordan’s financial adviser, Curtis Polk, and Front Row Motorsports, owned by Bob Jenkins, were the only two teams out of 15 organizations that refused to sign. They sued instead.

Multiple team owners have described that day on the opening weekend of the 2024 playoffs as an ultimatum from NASCAR as they found the offers to be “take-it-or-leave-it” and they signed with “a gun to our head.” Hall of Fame team owner Richard Childress testified Tuesday his team would have gone out of business if he didn't sign the agreement.

France had a better showing on the stand Wednesday than he did the day before as plaintiffs' attorney Jeffrey Kessler had to repeat many questions and France said on numerous topics that he was either unable to recall, did not remember or was not sure — even in response to evidence introduced that the France Family Trust received $400 million in distributions from 2021 through 2024 and that NASCAR is valued at $5 billion.

He wasn’t sure of the title his niece, Lesa France Kennedy, holds with NASCAR, or the ownership percentages between the two. Evidence showed Jim France owns 54% of NASCAR, while France Kennedy, the vice chair, owns 36%. France also testified he believes he is paid in “the $3.5 million range” as chairman.

While the extension offer presented in September 2024 did increase annual revenue promised to the teams, it fell short of the team's request for $720 million — a sum Phelps testified would have put NASCAR out of business.

It also fell short of the four “pillars” the teams were demanding. Teams ended up receiving $431 million annually in increased revenue, but were not granted permanent charters, did not get a voice in governance or the terms they sought on new business streams.

France testified Wednesday he did believe the teams received several of their requests.

He was the final witness called as the plaintiffs rested and NASCAR began to present its defense. NASCAR called an executive who testified to the costs of the current race car; its chief financial officer, who claimed NASCAR didn't have the funds to pay the teams the amounts they requested in the charter agreement; and, finally, a renowned accountant.

What has so far been presented?

Evidence has been introduced that shows the top team owners in NASCAR all wrote personal letters pleading for France to make the renewable charters permanent. The plaintiffs also introduced several documents detailing communication between NASCAR executives that showed France was stubbornly opposed to permanent charters throughout the two-plus years of bitter negotiations.

France’s position never changed, even though he received pleas from Hall of Fame team owners Joe Gibbs, Rick Hendrick, Jack Roush and Penske. All four are close personal friends, France said on the stand.

The charter system is equivalent to the franchise model used in other sports. In NASCAR, a charter guarantees cars a spot in the 40-car field each week, as well as specified financial terms.

The nine-person jury will have to decide if NASCAR violated antitrust laws, and if so, what the damages are to 23XI and Front Row. An economist has previously testified that NASCAR owes 23XI and Front Row $364.7 million in damages, and that NASCAR shorted 36 chartered teams $1.06 billion from 2021-24.

On Wednesday, Mark E. Zmijewski, a professor at the University of Chicago School of Business, testified as to why he felt the economist's calculations are wrong. He did not give a figure on potential damages NASCAR might owe, instead testifying that he found the projections incorrect because the model used Formula 1 as a benchmark.

Zmijewski said F1 has a higher growth rate and is more profitable than NASCAR, and that NASCAR does not have the profitability to afford the estimated payments the economist believes are owed to all race teams.

What is at stake?

NASCAR is expected to conclude its case Friday.

Should NASCAR lose, it will be up to U.S. District Judge Kenneth Bell to unravel the monopoly, and he can make any decisions he chooses. Among the options would be forcing the France family to sell NASCAR or the racetracks they own, and even dismantling or changing the charter system.

A win for 23XI and Front Row does not guarantee the teams will receive a combined six charters from NASCAR. They have both said they will go out of business if they are not chartered teams.

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