Richard Childress Testifies He ‘Would Be Broke’ If He Only Ran His NASCAR Cup Series Team

Longtime NASCAR team owner and engine builder Richard Childress took the stand during NASCAR’s antitrust trial in Charlotte on Tuesday.

Childress, who had previously said he “didn’t have a choice” to sign the latest charter agreement that is at the heart of the lawsuit brought by 23XI Racing and Front Row Motorsports because “I have over 400 employees, OEM in contracts, contracts with sponsors, and I have to take care of my team.”

Childress testified that his engine building and military parts business help fund the NASCAR racing operation and that the current charter agreement doesn’t provide enough revenue or value.

“I would be broke if I was just doing the Cup teams,” Childress said. Childress said, according to Fox Sports.

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NASCAR first issued the 36 charters for free in 2016, but they can be leased or sold to other teams and are reportedly now worth upwards of $45 million. They guarantee a spot in each race and a share of NASCAR revenue.

Teams were seeking a guarantee of $20 million per charter in the latest negotiations, which they say would cover operating expenses for each car entry, but ended up with $12 million. They also wanted the charters to be permanent rather than only good for the seven years that the new contract covered.

NASCAR Commissioner Steve Phelps testified on Tuesday that NASCAR would go “bankrupt” if it had offered the higher amount.

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NASCAR Chairman Jim France was also on the stand and said he remained against the idea of permanent charters, despite this being at the top of the wishlist for many of the teams, including those that signed.

Childress said France told him, “we don’t know where the sport is going to be in seven years,” in regard to broadcast rights money, The Athletic reported.

Childress, who owns 60% of his namesake team, was also asked about recent negotiations he had to sell an interest in it to a group led by Bobby Hillin Jr.. Childress was apparently surprised by the revelation, according to Fox Sports, s he said the negotiations were bound by non-disclosure agreements. He said that his business partner, Chartwell Investments, was interested in exiting its position, but that the deal did not materialize.