Hendrick Motorsports chief Rick Hendrick's explosive letter to NASCAR CEO Jim France during Cup Series charter negotiations was read out in court this week.
Currently, the NASCAR world is fixated upon the United States District Court for the Western District of North Carolina, with the stock car racing series currently into week two of an antitrust lawsuit brought about by two of its teams.
If you have been living under a rock for the last 14 months, these two teams are 23XI Racing - co-owned by basketball icon Michael Jordan and Cup Series star Denny Hamlin - and Front Row Motorsports.
The two teams sued NASCAR in October 2024, alleging anticompetitive and monopolistic practices after being the only two teams to refuse to sign up to the new Cup Series charter agreement ahead of the series' self-imposed deadline.
NASCAR teams negotiated Cup Series charter agreement
13 teams signed before the deadline, however, including Hendrick Motorsports.
Crucially, though, it is unravelling in court this week that not many teams were happy in doing so, and that several big names had been trying to negotiate with NASCAR over the agreement, focusing on four key pillars.
These were:
- Permanent Charters
- A say in decisions that impact their costs (three strikes rule)
- Share of new revenue to compensate teams for their intellectual property assets
- $720 million annually to cover each team’s basic costs of running a competitive car
It was not for the want of trying, however, as outlined by the fiery letter sent from Rick Hendrick to NASCAR CEO Jim France.
Rick Hendrick's letter to NASCAR CEO Jim France
For the sake of transparency, we've listed the letter in its entirety for you to read. Here is what Rick Hendrick had to say to the NASCAR chief, whom he calls a friend, on April 12, 2024.
"Dear Jim," Hendrick's letter began.
"Thank you for reaching out. I hope you and your family are doing well.
"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.
"The alternative is something none of us want, but I'm afraid we've reached a breaking point.
"You and I have become good friends. I have tremendous respect for you and truly value our personal relationship. In turn, I understand you must prioritize business and the best interests of your company, your family, and your employees. But for the sake of transparency, I want to share my dismay at the state of these negotiations and the ineffective process we've endured over the last two years. Both sides have wasted a tremendous amount of time and resources, and we find ourselves at an unnecessary impasse.
"I'd also like to take this opportunity to share some facts. Over the past five years, Hendrick Motorsports has won two NASCAR Cup Series championships – and lost $20 million. I'd be happy to show you audited financial statements. I love this sport, and my passion for it keeps me engaged, but there's a clear business reality. Before we can possibly reach an agreement, NASCAR must acknowledge the current model is unsustainable for teams and cannot continue without substantive, fundamental change.
"Hendrick Motorsports has helped grow the sport. For example, Ally is one of the full-time primary sponsors and, because of our relationship, has now become one of your official NASCAR partners. They also spend well over $1 million annually with FOX and NBC. We brought NAPA Auto Parts back into NASCAR after they were thoroughly embarrassed and elected to leave. My own company spends more than $20 million per year in sponsorship and advertising with NASCAR's broadcast partners.
"To allow our racing programs to operate, Hendrick Automotive Group did $1 billion in business with Hendrick Motorsports sponsors in 2023, including:
- Ally: 22,000 loan originations ($951 million in retail paper)
- UniFirst: 24,000 uniforms leased ($4 million)
- Axalta: 33,000 gallons of Axalta paint used ($8.5 million purchased)
- Valvoline: 887,000 gallons of oil poured
- NAPA: 1.2 million parts purchased ($9 million)
"The list of brands that have engaged with NASCAR because of Hendrick Motorsports is long. We have invested in building star drivers and have promoted the sport as much as anyone over the last four decades. Our organization and our partners direct tens of millions of dollars back to your company in the form of luxury suite rentals and other track activation costs.
"But the message I continue to hear from NASCAR is that the teams bring no value, our rights are worthless, and we don't know how to run a viable business.
"To be made to feel that my family's investments and sacrifices are not appreciated, valued or respected by NASCAR is disappointing, to put it mildly. To be asked to consider a lesser deal, as your most recent proposal suggests, is a slap in the face. I will not agree to it.
"Jim, your family has built an incredible legacy over the past 76 years, and I know it's vitally important to you that it continue to grow and be successful long after we're both gone. Having invested in building Hendrick Motorsports for 40 of those years, I feel exactly the same way. At this point in my life, I'm focused on ensuring that our company is around for the next 40 years. Jeff Gordon loves the sport. So does my son-in-law Marshall Carlson, my grandson and the rest of my family. I want to see them carry it on far into the future. I owe it to my family, my employees and their families to do everything in my power to secure that future.
"I understand it's your preference to meet with teams individually, but I urge you to personally come to the table and work together with us. The teams agree on the core issues and are committed to seeing this through. We are presenting reasonable, common-sense ideas that will allow us to build long-term value, encourage future investment by teams, attract new ownership to the sport, and grow the pie for everyone, including NASCAR. Notably, the proposals also do not ask you to take a step back financially.
"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. In my heart, I know there is a win-win solution that will allow all of us to thrive for many, many more years. If I've learned anything in my time in business, it's that we'll always be better by coming together. We have that opportunity right now.
"Respectfully, Rick Hendrick."
