The ongoing legal battle between NASCAR and FRM has uncovered huge losses for the three-car outfit. Recently released financial statements show that team owner Bob Jenkins has incurred a net loss of over $100 million since the organisation’s inception.
The antitrust lawsuit has reared its ugly head. Since the case is heading to trial, financial records involving both parties have been made public. The Discovery process has revealed damning evidence on both sides.
According to reports, FRM’s charter purchases went from $2M in 2016 to $29M in 2024. Meanwhile, the team hasn’t seen much profit to account for it. Notably, NASCAR itself hasn’t seen much profit in 2024. The sanctioning body made $103 million across its three National Series.
Noting the same, NASCAR analyst Bob Pockrass shared an X post, writing,
“In June 2025 deposition: Bob Jenkins said he’s lost $60M since 2016 and well over $100M total on his NASCAR team.”
23XI Racing FRM have backed out of the 2025 charter deal and are now contesting as open teams with a much lower payout. If the antitrust lawsuit doesn’t go their way, the teams will permanently their charters. However, with the courts dismissing NASCAR’s recent counterclaim, the outcome may still favour the two teams.
Kenny Wallace weighs in on NASCAR’s legal battle against 23XI and FRM
Kenny Wallace shared his take on NASCAR’s apparent fall from grace. According to the veteran driver, the charter system marked the beginning of NASCAR’s downfall.
“NASCAR was ruling and they were ruling hard and they opened up Pandora’s box by giving these teams what they asked for. They gave them the charter system and there’s that old saying, ‘Be careful, you give them an inch, they take a mile.’ The rules were not in place properly at NASCAR for them to open this up and give them a charter. So the similarities between the Roman Empire and NASCAR are strikingly scary,” Wallace said in an episode of Coffee with Kenny.
“NASCAR had good rules in place and then they ruined it by opening up a charter system….Now hopefully things will turn out for the better, but right now this is not good,” he added.
Reports emerged that NASCAR may find a settlement with 23XI and FRM ahead of the championship weekend, but Denny Hamlin has refuted those claims. He reaffirmed that there are no mediation talks on the horizon. As such, the case is on track for a December trial.
Despite the legal turmoil, FRM’s 2026 driver lineup will remain unchanged. The team currently runs the #34 entry with Todd Gilliland, #4 with Noah Gragson, and #38 with Zane Smith. All three drivers rank 27th or lower in the standings, with Smith being the best among them. Notably, the No.38 driver has signed a multi-year contract with the team.
Edited by Vignesh Kanna
