
NASCAR Commissioner Steve Phelps testified Tuesday during a federal antitrust trial.
Phelps took the stand on the seventh day of a trial in which two teams are suing NASCAR for alleged monopolistic practices. He quickly faced a question about his salary.
Phelps, NASCAR's president at the time of 2024 charter negotiations, is making a $2.5 million salary as commissioner, with up to an additional $2.5 million in bonuses. Bob Pockrass of Fox Sports noted that he testified to receiving $1.6 million with up to $3.25 million in bonuses as president.
Front Row Motorsports and 23XI Racing were the only two of 15 Cup Series teams that refused to sign a multi-year charter agreement last September. They instead sued NASCAR for allegedly violating the Sherman Antitrust Act after failing to meet an imposed deadline.
NASCAR countersued both teams and 23XI Racing co-owner Curtis Polk, accusing them of conspiring with other teams during the charter negotiation process. Judge Kenneth D. Bell dismissed the counterclaim and determined that NASCAR "plainly exercises monopsony power" as the premier stock car racing operation in the United States.
If they lose the case, FRM and 23XI could lose millions in revenue without a charter and risk going out of business. Meanwhile, a victory could spark massive changes within NASCAR and drive out CEO Jim France, who is named as a co-defendant.
Phelps said during Tuesday's testimony, per The Athletic's Jeff Gluck and Jordan Bianchi , that it was "unfair" to say NASCAR presented teams with a firm Sept. 6, 2024, deadline to take or leave a charter agreement. He also claimed not to recall telling owner Rick Hendrick that France didn't want to give teams permanent charters.
Asked about nearly $400 million given to the France family from 2021 to 2024, Phelps said he believed $300 million was used to pay taxes. He wasn't sure if those were NASCAR taxes or the family's.
Phelps claimed that NASCAR "would cease to exist" if it met the teams' initial request to receive $720 million per year.
"It was one of the most challenging and longest negotiations I’ve ever been part of," Phelps said.
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