NASCAR Commissioner Steve Phelps took to the stand Tuesday during the high-profile trial over a dispute between 23XI Racing, owned by Michael Jordan, Denny Hamlin, and Bob Jenkins, and NASCAR. In his testimony, Phelps revealed that negotiating with Curtis Polk, who represented the "Team Negotiating Council", was an extremely challenging process due to the TNC's rigid stance on four key pillars.
Phelps expressed frustration at not being able to reach a mutually beneficial agreement, saying the teams' initial demands of $720 million in annual revenue were unsustainable and would have put NASCAR out of business. He also claimed that internal communications showed no willingness from the France family, who own the series, to compromise on permanent charters.
Phelps stated that he worked tirelessly to secure the best deal possible for the teams but was ultimately unable to meet their demands. The commissioner acknowledged that a major hurdle in negotiations was the lack of progress within NASCAR's leadership, particularly from Chairman Jim France, who was described as a "brick wall" by Phelps and other executives.
The current revenue distribution to teams stands at $431 million annually, far short of the initial request for guaranteed funds. Notably, charters are not permanent, and teams did not secure any voice in rules and regulations.
Phelps provided insight into his compensation package, which includes a base salary of $2.5 million per year, as well as bonuses, while also shedding light on the significant financial burden faced by the France family, with approximately 75% of their recent revenue paid in taxes, leaving roughly $100 million untaxed.
As the trial continues to unfold, Phelps' testimony added depth to the contentious negotiations and reinforced the challenges faced by NASCAR in balancing its teams' demands.
Phelps expressed frustration at not being able to reach a mutually beneficial agreement, saying the teams' initial demands of $720 million in annual revenue were unsustainable and would have put NASCAR out of business. He also claimed that internal communications showed no willingness from the France family, who own the series, to compromise on permanent charters.
Phelps stated that he worked tirelessly to secure the best deal possible for the teams but was ultimately unable to meet their demands. The commissioner acknowledged that a major hurdle in negotiations was the lack of progress within NASCAR's leadership, particularly from Chairman Jim France, who was described as a "brick wall" by Phelps and other executives.
The current revenue distribution to teams stands at $431 million annually, far short of the initial request for guaranteed funds. Notably, charters are not permanent, and teams did not secure any voice in rules and regulations.
Phelps provided insight into his compensation package, which includes a base salary of $2.5 million per year, as well as bonuses, while also shedding light on the significant financial burden faced by the France family, with approximately 75% of their recent revenue paid in taxes, leaving roughly $100 million untaxed.
As the trial continues to unfold, Phelps' testimony added depth to the contentious negotiations and reinforced the challenges faced by NASCAR in balancing its teams' demands.
he's basically being held hostage by the france family and the team negotiating council 
it's so infuriating that nascar is being forced to negotiate with these people who just wont budge on their demands 
$720 million in annual revenue is insane, like are you kidding me? 
and the fact that they can't even agree on permanent charters is just ridiculous 
as a fan of the sport i'm so disappointed in how this whole situation is playing out 
at least steve phelps was honest about his efforts to secure a deal for the teams, but i feel bad for him too 
. i mean, who wouldn't want $720 million annually from a massive sport like nascar? 
what really stood out to me is that phelps was willing to work hard to secure a good deal for the teams, but just couldn't meet their needs 
. maybe this trial will lead to some positive changes in nascar & its relationship with its teams 
. They've always been pretty protective of their interests. The fact that NASCAR's revenue distribution is only at $431 million is wild 
. And let's not forget about his own compensation package 
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I'm not surprised that the France family wasn't willing to budge on charter permanence 
. It's like they're trying to keep the best players from leaving, you know? 
Teams want stability and security for their investments, but the Fams are all about keeping it in-house 
The TNC's 4 pillars were pretty unreasonable imo, $720 million in annual revenue? That's crazy talk 
. I don’t know if NASCAR will ever find its way again if it keeps going down this road 
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But hey, at least Phelps' testimony gave us some insight into what's going on behind the scenes.
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