Jenkins Blasts NASCAR’s Charter Tactics as ‘Taxation Without Representation’

Front Row Motorsports owner Bob Jenkins testified Wednesday in the NASCAR federal antitrust suit that he would like for the sanctioning body to restrict the Cup Series to the teams that possess a Charter.

Currently, NASCAR allows “open teams”, those without a Charter, to compete with the Chartered teams in the Cup Series. If only Chartered teams were allowed to compete in the Cup Series, the field for each event would consist of 36 cars. However, with open teams allowed to compete, there could be as many as 40 cars in a race.

“If the fields are closed, the value of the Charters go up,” Jenkins said during the trial’s third day when questioned by NASCAR attorney Lawrence E. Buterman. “I believe open teams are a detriment to the sport. To me, it’s so illogical to keep the spots open.”

Jenkins possesses three Charters as does 23XI Racing. FRM and 23XI Racing were the only two Cup teams that refused to sign NASCAR’s 2025 Charter agreement. The team owners contend the exclusivity requirements in the Charter agreement are anti-competitive. In the antitrust suit the two teams filed against NASCAR, they allege the sanctioning body has engaged in anti-competitive acts and is paying the teams below market value. NASCAR disagrees.

“Not a single owner said he was happy to sign the new Charter agreement,” Jenkins said. “They couldn’t afford to risk everything they have worked their whole lives for. You can’t turn a race shop into a warehouse.”

Jenkins said he believed NASCAR’s tactic to get the teams to sign the Charter agreement was “heavy handed”, and that NASCAR wanted to “rule with an iron fist.” He equated it to “taxation without representation.”

“We have to have a model that works for us,” Jenkins said.

Jenkins said team owner Joe Gibbs told him he felt like he had to sign the 2025 Charter agreement and that in doing so, he “let me down.”

A businessman from Dandridge, Tennessee, Jenkins entered NASCAR as a part-time Cup team in 2005. His first full-time season was 2009 with John Andretti. However, he said he has never made an operating profit with his team. The two years before the inaugural Charter agreement began in 2016, Jenkins said he lost $8.5 million.

When NASCAR distributed the initial Charters, Jenkins received two. Since then, he has purchased, leased and sold Charters. He said the Charter system was good, but the 2025 agreement was bad.

“This is not about bashing the France family,” Jenkins said about the family that has owned the sanctioning body since it was founded in December 1947 in Daytona Beach, Florida. “They have done a lot of good things, but this Charter agreement isn’t one of them.”

Jenkins said a merger with 23XI Racing was discussed in 2021. Under the proposal, 23XI Racing majority owner Michael Jordan would own 50 percent of the operation, Denny Hamlin 30 percent and Jenkins 20 percent. However, they abandoned the idea.

The trial’s third day was devoted to profit and loss numbers, operating budgets and Charter statistics. NASCAR executive Scott Prime, who began his testimony at 1:45 p.m. on Tuesday, finished at 2:20 p.m. on Wednesday. During his testimony, Prime said NASCAR’s CFO told him if NASCAR had to pay the teams $720 annually it would bankrupt the organization. The teams maintain it takes $20 million to field a car and they want NASCAR to pay that amount to a team for each Charter it possesses so they’re not dependent on sponsor money to operate the team.

Before court adjourned Wednesday, U.S. District Judge Kenneth Bell admonished NASCAR attorneys for violating two court orders. He told them if they violated a court order again there would be “significant repercussions.”

Jenkins will resume his testimony Thursday morning.