CHARLOTTE, N.C. (AP) — A federal judge on Wednesday ordered a dozen NASCAR teams to provide 11 years of financial data to the stock car series as part of an ongoing legal fight but sharply limited what they need to share.
A day after hearing arguments from both sides, U.S. District Judge Kenneth Bell of the Western District of North Carolina said the information will “allow NASCAR to have much of the arguably relevant substance of the requested information, while protecting the legitimate interests” of the 12 teams. They had raised concerns that the private financial details could end up being made public and would hurt competitive balance.
Under the decision, the teams must provide top-line data — total revenue, total costs, and net profits and losses — dating to 2014. The teams and NASCAR were ordered to settle on an independent accounting firm to handle the details by Friday, with that work paid for by NASCAR.
Earlier this week, attorneys for 12 of the 15 overall race teams argued against disclosing their financial records to become part of NASCAR’s antitrust lawsuit. They are not parties in the ongoing suit filed by 23XI Racing, which is owned by the NBA Hall Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by entrepreneur Bob Jenkins.
23XI and Front Row are the only two organizations of the 15 that refused last September to sign take-it-or-leave offers on a new charter agreement. Charters are NASCAR’s version of a franchise model, with each charter guaranteeing entry to the lucrative Cup Series races and a stable revenue stream. Of the 13 teams that signed, only Kaulig Racing has submitted the financial documents NASCAR subpoenaed as part of discovery.
Teams have long argued that NASCAR is not financially viable and they need a greater revenue stream and a more permanent length on the charter agreements, which presently have expiration dates and can be revoked by NASCAR. Two years of negotiations ended last fall with 13 teams signing on and 23IX and FRM instead heading to court.
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