Gifts for NASCAR Fans
During the Tuesday afternoon examination of NASCAR CEO Jim France, 23XI Racing, Front Row Motorsports lawyer Jeffery Kessler presented a letter from team owner Rick Hendrick encouraging the sport’s Chairman to embrace fundamental change to NASCAR after the team faced massive losses despite success at the sport’s highest level.
In April 2024, Rick Hendrick and Hendrick Motorsports were riding a stretch from the turn of the decade in which its four NASCAR Cup Series teams had scored 45 wins, its first Daytona 500 win since 2014, and two NASCAR Cup Series Championships.
But, despite this success on track, a letter sent by owner Rick Hendrick to NASCAR Chairman and CEO Jim France from that same time paints a different picture off track.
In late 2023, NASCAR and its 15 charter owning teams began negotiations for the 2025 NASCAR Charter Agreement. This agreement sets the perimeters of charter payouts and terms between the two parties for a set number of years.
Though this agreement came to completion in late 2024, somewhat controversially, with all but two teams holding out, it is still a topic of conversation.
This is because the two teams that held out were 23XI Racing and Front Row Motorsports, who, after the alleged take-it-or-leave-it offer in early September 2024, sued NASCAR on antitrust grounds less than a month later.
Now, over a year later, this lawsuit has gone to trial, and on Tuesday afternoon, the 12th witness called to the stand was Jim France, the sport’s Chairman, CEO, and son of NASCAR’s founder.
During the examination by lawyer Jeffery Kessler, many topics came to discussion, such as permanent charters, something the teams were pursuing but did not receive, as well as his relationships with NASCAR’s team owners.
In particular, letters sent to France during negotiations from top names in the sport of NASCAR, with the list of owners featuring Joe Gibbs, Rick Hendrick, Roger Penske, and Jack Roush.
In his letter, Hendrick, usually somewhat mild-mannered, is upfront and bold with France, whom he calls a good friend, saying that he intends to “share my dismay at the state of these negotiations and the ineffective process we’ve endured over the last two years.”
Hendrick also implores France and NASCAR to explore a more collaborative financial model for the future of the sport. For example, the letter gets straight to this point, with Hendrick saying in the first full paragraph:
“I believe we agree it’s critical for Hendrick Motorsports and all teams to establish a Charter agreement that’s fair and ensures a collaborative and prosperous structure for NASCAR, its stakeholders and the industry as a whole. This is an incredibly exciting time. The sport has great momentum, and we now have an opportunity to make even more progress if we choose to embrace it.” — Rick Hendrick
One of the most gripping statements in this entire letter follows up on a list that shows the $1 billion in business Hendrick Automotive Group did with Hendrick Motorsports sponsors in 2023.
This list broke down how the team utilizes sponsors like Ally, NAPA, and Valvoline in day-to-day operations at the Hendrick Automotive Group dealerships and HMS.
But, aside from their close relationship with their sponsors, these brands are a major part of what HMS brings to the table for NASCAR, alongside factors like their legacy of star drivers, and the “tens of millions of dollars” that HMS partners have paid NASCAR for suite rentals and at-track activations.
In contrast to these claims, the NASCAR legend says NASCAR frequently tells team owners that they:
“Bring no value, our rights are worthless, and we don’t know how to run a viable business.”
Of course, Hendrick said that he was disappointed by this and that NASCAR made him feel that “my family’s investments and sacrifices are not appreciated, valued or respected by NASCAR” and that a recently proposed charter agreement is a “Slap in the face. I will not agree to it.”
In his closing, the 76-year-old then claims that the teams are not trying to scrape together enough money to get by, but instead create a new structure that will grow NASCAR and its teams.
“Our negotiation is about survival for the teams, but it’s also about wiping the slate clean and creating a truly collaborative structure that will propel NASCAR to even greater heights.” — Rick Hendrick
Aside from this, out of everything in this letter, most shocking of all is the multi-million dollar losses facing HMS.
First and foremost, it is no secret that HMS is losing money; in fact, HMS Chairman Jeff Gordon said so on a February 2024 episode of the Dale Jr Download.
In the midst of Charter negotiations, Gordon told his former HMS teammate Dale Earnhardt Jr:
“We don’t make money. I don’t think Hendrick Motorsports has made a profit in ten years.” — Jeff Gordon on The Dale Jr Download February 2024
In his letter to France, Hendrick goes right to the numbers on the first page, sharing that the team, despite its on-track success, lost roughly $20 million over the prior five years.
“Over the past five years, Hendrick Motorsports has won two NASCAR Cup Series championships – and lost $20 million.” — Rick Hendrick
The 15-time Cup Series Champion owner then remarks that he is willing to “show you audited financial statements” if France needs any more proof of these losses, before turning to focus on the $1 billion in business mentioned above, which they have done with their sponsors.
While it is important that these letters show the jury the stance of team owners during negotiations, the financial losses shown by Hendrick paint a picture of the cost it takes to succeed at the sport’s highest level.
Ultimately, HMS would sign the controversial charter agreement before its short deadline, though he has come up in court, and is listed as a potential witness, Hendrick has yet to appear on the stand during the trial.
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