Attorneys for 12 NASCAR racing teams told a federal judge Tuesday that releasing their financial records to the sport's governing body would be "catastrophic" to competitive balance, warning that sensitive details about sponsorships and driver salaries could devastate their operations if made public.
The heated courtroom argument represents the latest escalation in a legal battle that has divided NASCAR's stakeholders and threatens to reshape the sport's economic structure ahead of a December trial.
The dispute centers on NASCAR's demand for 11 years of financial records from teams not involved in an antitrust lawsuit filed by 23XI Racing and Front Row Motorsports1. NASCAR argues it needs the financial data to understand profit margins and assess whether teams are struggling under current charter agreements2.
"It would be absolutely devastating to these race teams if their competitors were able to find out sponsorships on the cars, driver salaries and all revenue streams," attorney Adam Ross said during the nearly two-hour hearing2. "It cannot make its way into the public realm."
The requested documents include detailed expenditures from Hendrick Motorsports' 24 Hours of Le Mans project and costs associated with Kyle Larson's Indianapolis 500 participation3. Of the 13 teams that signed new charter agreements last September, only Kaulig Racing has complied with NASCAR's subpoena1.
U.S. District Judge Kenneth Bell of the Western District of North Carolina promised a quick ruling but expressed exasperation with the escalating conflict1. "I am amazed at the effort going into burning this house down over everybody's heads," Bell said at the hearing's conclusion1. "But I'm the fire marshal and I will be here in December if need be."
Teams argued that NASCAR's request violates their charter agreement, which requires disputes to go to arbitration rather than court discovery2. They also raised concerns about information leaks, citing a previous hearing where discovery materials were disclosed in open court1.
The financial records dispute stems from the antitrust lawsuit filed by 23XI Racing, co-owned by Michael Jordan and driver Denny Hamlin, along with Front Row Motorsports1. The teams refused to sign new charter agreements, alleging NASCAR operates as a monopoly through anti-competitive practices1.
On Monday, Judge Bell denied the teams' motion to dismiss NASCAR's countersuit, which accuses them of illegal collusion during charter negotiations23. NASCAR's counterclaim alleges the teams violated antitrust laws by threatening boycotts and coordinating to secure more favorable terms4.
"This counterclaim is a tactic by NASCAR to divide and distract," said attorney Jeffrey Kessler, representing both teams3.
