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23XI, Front Row rest case as NASCAR begins trial defense

Story byMotorsport photoMatt WeaverThu, December 11, 2025 at 2:39 AM UTC·12 min readIn a timeline where the parties involved in the 23XI Racing and Front Row Motorsports v NASCAR trial couldn’t agree on anything to the point they have ended up in court, it is no surprise that they could look at the same financial records and end up with two different interpretations. That is the key takeaway from much of Wednesday, which is officially Day 8, of the trial that will determine if NASCAR used its monopsony status to financially disadvantage teams that compete in the Cup Series and harm competition on the whole. AdvertisementAdvertisementAdvertisementAs a reminder, this case isn't about whether or not NASCAR is a monopoly, which by itself is not illegal. Instead, the Western District of North Carolina has already determined that NASCAR is a monopsony, the only purchaser of the product that is premier Stock Car racing teams. The jury must determine if NASCAR used that market power to harm competition and the earnings of teams through the charter system. Read Also: How NASCAR's ownership charter system works AdvertisementAdvertisementAdvertisement Everything you need to know about the NASCAR, 23XI and Front Row antitrust trial NASCAR Chief Financial Officer Greg Motto was on the witness stand for just short of two hours where he spent most of the time discussing the $400 million in distribution to the France family trust. First, understand that for tax purposes, NASCAR is structured as a private S Corporation meaning that its income, losses, deductions and credits are passed to the shareholders. The shareholders, in this case, are all France-Kennedy family members. AdvertisementAdvertisementAdvertisementJeffrey Kessler, the lead attorney for 23XI and FRM, made the argument that NASCAR could have afforded $720 million a year in charter payments to the teams instead of the $431 million distributed in 2025.

Motorsport photo

Motorsport photo

Credit: Yahoo

Key Highlights

  • Motto, in addition to a financial expert (Mark Zmijewski) said that would have bankrupted NASCAR, in contrast to arguments made by team financial expert Dr.
  • Edward Snyder. Kessler has made a similar argument from the start of the trial that all the testimony from NASCAR executives and their experts' math include everyone retaining the same salary and the business being run exactly as it was last year. Instead, Kessler has repeatedly pointed to what happened in 2020 when COVID-19 forced NASCAR to issue salary cuts for everyone from the top to the bottom until the pandemic subsided. AdvertisementAdvertisementAdvertisementKessler said in a world in which the teams were paid what they felt they were entitled to if not for anticompetitive behavior, Jim France down to track maintenance would have also experienced similar shifts in their compensation. Read Also: Childress blindsided, France evasive in NASCAR trial Kessler said that NASCAR selling a majority of the land that once housed Auto Club Speedway for $544 million could have gone to paying the teams instead of paying down debt from the International Speedway Corporation merger in 2019.
  • He also said that, as an S-Corp, NASCAR isn’t required to send dividend payments to the France family. AdvertisementAdvertisementAdvertisementMotto says NASCAR has to pay its taxes, and that means the France family, since the company is an S-Corp.
  • Kessler says selling a NASCAR owned track meant that its overall equity was improved since it now has less debt. Kessler said NASCAR and the France family trust is just moving money from one palm of the family hand to another.“You do whatever you can to minimize the taxes to the France family,” Kessler said to Motto under cross-examination. Motto says NASCAR’s year over year revenue loss in 2025 was $10 million, which Kessler says was simply a ‘rounding error’ for an entity that size. AdvertisementAdvertisementAdvertisementKessler also cross-examined Zmijewski, who prefers to go by Professor Z, and said that the NASCAR financial expert did not properly account for the Sanc.
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Sources

  1. 23XI, Front Row rest case as NASCAR begins trial defense

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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