The NASCAR trial in Charlotte, North Carolina, has continued to reveal how the company handles its charter system and how teams say the process limits their power. The case, led by Michael Jordan’s 23XI Racing and Front Row Motorsports, centers on claims that NASCAR pressures teams into unfair charter deals.
Jury selection earlier in the week of the NASCAR trial removed people who showed clear bias, including fans of Jordan. Opening statements focused on the teams’ lack of alternatives outside NASCAR. Denny Hamlin also testified and talked about the financial strain the current model creates.
By the third day, the attention of the NASCAR trial turned toward internal emails and recorded comments from NASCAR executive Scott Prime.
Scott Prime Pressed on Warnings and the Structure of the System
In testimony reported by Jeff Gluck of The Athletic, Prime said that during his time at McKinsey, he wrote a 2014 report raising “concerns over the longevity of the sport” if team finances did not improve. That report suggested a “medallion” concept, which later became NASCAR’s charter system.
Jeffrey Kessler argued that teams still lacked negotiating strength, pointing to a 2019 request from a team for a better business model. According to Gluck’s reporting, Prime responded on the stand by saying, “We presented the offer, and they accepted it.”
Kessler then stated that teams had “nowhere else to go,” and Gluck wrote that Prime answered, “NASCAR is the premier stock car racing series today, yes.”
Emails, Hardball Options, and Internal Tension
Prime sent an email during the 2024 charter negotiations calling the teams’ demands “quite disappointing.” The teams said that if NASCAR did not agree, they would be “forced to recommit our energy to exploring all our options.” Gluck reported that the message raised concerns inside NASCAR leadership about a possible breakaway series.
Prime’s email laid out possible NASCAR actions, including reducing the number of charters, setting a hard deadline, rewriting charter terms, or even dissolving the charter system. Gluck reported that then-president Steve Phelps replied, “They are playing with fire. Pick a date, and they can sign or lose their charters. It is that simple.”
Kessler argued this language showed monopoly power. Gluck wrote that NASCAR did later issue a take-it-or-leave-it offer on September 6, 2024. Prime had previously described that type of approach as “a gun to your head,” though Gluck noted he said he did not support using it.
Internal tension also came up in court. According to Jeff Gluck, Prime wrote a text saying, “No bueno with Jim on charters… it was a brick wall,” referring to NASCAR chairman Jim France. When asked what France wanted, Prime replied, “I don’t know what he wanted.”
The “goodwill provision” also came under question. Kessler said it operated like a non-compete, since even a minority owner of 10 percent could not join or invest in another stock car series for more than a year. When asked whether he believed it was goodwill, Prime answered, “I do.”
IP Limits, Revenue Debate, and What Comes Next
Prime had previously written that removing intellectual-property protections for the Next Gen car “increases risk… of the creation of a copycat series.” The court also heard Prime say that the rules preventing teams from using the Next Gen car outside NASCAR were standard and, in his words, “It was never an issue with the teams.”
Gluck also reported Prime’s comments against permanent charters. On the stand, he said, “You can’t write a contract today that’s going to last forever.”
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