RACING: Economist testifies that NASCAR underpaid teams $1.06B over 4 years

A prominent economist testified Monday that NASCAR should pay $215.8 million to 23XI Racing and $148.9 million to Front Row Motorsports, citing the organization’s monopolistic practices.

Dr. Edward A. Snyder, former dean of Yale’s business school and a previous dean at the University of Chicago, presented his calculations during Day 6 of the antitrust trial in Charlotte, N.C., involving 23XI Racing—co-owned by Michael Jordan and NASCAR driver Denny Hamlin—and Front Row Motorsports.

The two teams were the only ones among NASCAR’s 15 competitors that refused to sign the organization’s charter agreements last year, later filing the lawsuit that challenges NASCAR’s business practices.

Snyder, who frequently testifies in high-profile trials, described NASCAR as a monopolist, saying the organization controls the tracks, teams, and cars. “This is anti-competitive,” he told media outlets. “Clear and simple.”

He further explained, according to The Athletic, that team owners are restricted from using cars they technically own outside NASCAR, despite cars being their most important equipment. “To me, as an economist, this situation bothers me. That’s anti-competitive,” Snyder said.

Snyder also claimed NASCAR underpaid its charter teams by $1.06 billion over a four-year period beginning in 2021. His analysis partly compared Formula One, which pays teams 45% of its revenue, to NASCAR, which reportedly shares only 25%.

NASCAR’s legal team sought to challenge Snyder’s findings, arguing that the 45% figure for F1 payouts was inaccurate.

Snyder is expected to continue his testimony on Tuesday. The trial, initially anticipated to last two weeks by Judge Kenneth D. Bell, is moving slower than expected, with several more witnesses remaining. -Field Level Media/Reuters