23XI, FRM vs. NASCAR lawsuit: Expert witness reveals massive damages figure teams are seeking

The NASCAR lawsuit had its first expert witness today in economist Edward Snyder. He calculated the damages teams are seeking. Should the teams prevail in the trial, they are seeking a combined $365 million in damages. An astounding figure.

As the first expert witness that the jury has seen in this trial, Snyder has an important role to play for 23XI Racing and Front Row. NASCAR, on cross-examination, did its best to dispute the claims made by the teams’ expert.

“The two teams suing NASCAR are asking for about $365 million in combined damages from the series for alleged anti-competitive conduct,” Adam Stern of Sports Business Journal reports. That is a check that NASCAR definitely doesn’t want to write.

The NASCAR lawsuit has revealed plenty that both sides wish were still secret. However, it is clear that neither side was going to give in without a substantial settlement. Earlier in his testimony, Snyder attempted to paint a picture for the jury using the evidence and exhibits used earlier in the trial with other witnesses.

The expert comes in and puts the anecdotal evidence and testimony into context and helps to solidify the story being made by whoever they are on the stand for. Experts are paid for their time and professional opinion in trials like these.

Snyder, an economist and former college Dean at multiple prestigious business schools, is being used to explain the numbers to the jury. He is also tasked with stating whether or not NASCAR has, in his professional opinion, used anti-competitive practices. Of course, he agrees with the Plaintiffs’ position that NASCAR is a monopoly that abuses its power.

NASCAR lawsuit: Expert witness hits hard at sanctioning body

Earlier in Edward Snyder’s testimony, he made a few statements that were rather damning of NASCAR. At least, they could be, if the jury accepts his arguments. The economist testified that NASCAR has set up barriers in the market.

According to Adam Stern of Sports Business Journal, Snyder noted that NASCAR has “created barriers” in the market of premier stock car racing. He noted that the sport has set up those barriers to prevent competition in the market. Snyder says that these barriers have also harmed the teams in terms of reducing their market value.

Snyder went over the trial documents that showed the reaction leadership had to a potential competing series. As he testified regarding those plans, Snyder reportedly said, “You don’t see: Pay the teams more,” according to Bob Pockrass of FOX Sports.

More money. Being able to be profitable. That is at the crux of the teams’ arguments in the NASCAR lawsuit. According to Snyder, NASCAR could afford to pay teams $300 million more per year and would be fine as far as being able to operate its business is concerned.