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Economist says NASCAR owes $364.7M to teams in antitrust case

Story byAssociated PressTue, December 9, 2025 at 5:17 AM UTC·4 min readCHARLOTTE, N. C. — An economist testified in Michael Jordan's federal antitrust trial against NASCAR that the racing series owes a combined $364.7 million in damages to the two teams suing it over a revenue-sharing dispute. Edward Snyder, a professor of economics who worked in the antitrust division of the Department of Justice and has testified in more than 30 cases, including “Deflategate” involving the NFL's New England Patriots, testified on Monday. He gave three specific reasons NASCAR is a monopoly participating in anticompetitive business practices. AdvertisementAdvertisementAdvertisementUsing a complex formula applied to profits, a reduction in market revenue, and lost revenue to 23XI Racing and Front Row Motorsports from 2021-24, Snyder came up with his amount of damages owed.

Economist says NASCAR owes $364.7M to teams in antitrust case

Credit: Yahoo

Key Highlights

  • Snyder applied a 45% of revenue sharing he alleged Formula 1 gives to its teams in his calculations; Snyder found that NASCAR's revenue-sharing model when its charter system began in 2016 gave only 25% to the teams. The suit is about the 2025 charter agreement, which was presented to teams on a Friday in September 2024 with a same-day deadline to sign the 112-page document.
  • The charter offer came after more than two years of bitter negotiations between NASCAR and its teams, who have called the agreement “a take-it-or-leave-it” ultimatum that they signed with “a gun to their head.”A charter is similar to the franchise model in other sports, but in NASCAR it guarantees 36 teams spots in the 40-car field, as well as specific revenue. Jordan and three-time Daytona 500 winner Denny Hamlin for 23XI, along with Front Row Motorsports and owner Bob Jenkins, were the only two teams out of 15 to refuse the new charter agreement. AdvertisementAdvertisementAdvertisementSnyder's evaluations found NASCAR was in fact violating antitrust laws in that the privately owned racing series controls all bargaining because “teams don't have anywhere else to sell their services." Snyder said NASCAR controls “the tracks, the teams and the cars.”Snyder repeatedly cited exclusivity agreements NASCAR entered into with racetracks after the charter system began.
  • The agreements prevent tracks that host NASCAR from holding events with rival racing series.
  • Prior to the long-term agreements, NASCAR operated on one-year contracts with its host racetracks. The Florida-based France family founded NASCAR in 1948 and, along with Speedway Motorsports, owns almost all the tracks on the top Cup Series schedule.
  • Snyder's belief is that NASCAR entered into exclusivity agreements with tracks to stave off any threats of a breakaway startup series.
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Sources

  1. Economist says NASCAR owes $364.7M to teams in antitrust case

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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