NASCAR Cup Series teams 23XI Racing and Front Row Motorsports have filed a lawsuit against NASCAR and Chairman Jim France, alleging antitrust law violations. The teams claim that NASCAR's actions, including its ownership of the series, tracks, and parts suppliers, have stifled competition in the sport.
**NASCAR Cup Series teams 23XI Racing and Front Row Motorsports have filed a lawsuit against NASCAR and Chairman Jim France, alleging antitrust law violations.** The teams claim that NASCAR's actions, including its ownership of the series, tracks, and parts suppliers, have stifled competition in the sport.
The lawsuit, filed Oct. 2 in federal court in Charlotte, alleges that NASCAR has violated antitrust laws by controlling the market where premier stock-car racing teams can compete. The teams argue that NASCAR's ownership of the series and the majority of the tracks, as well as its requirements that teams purchase parts and pieces for their cars from a NASCAR-approved supplier and prohibit teams and tracks from participating in other racing series without NASCAR's approval, have created a monopoly.
23XI Racing, Front Row Motorsports Sue NASCAR in Antitrust Lawsuit
The teams also allege that the new 2025 charter agreement is unfair to them when it comes to revenue distribution and restrictions. The charter system, which was implemented in 2016, guarantees a spot in every Cup race for 36 teams, but the new agreement has been criticized by some teams for its terms.
23XI Racing is owned by driver Denny Hamlin, basketball icon Michael Jordan, and Jordan business associate Curtis Polk. Front Row Motorsports is owned by restaurant franchisee Bob Jenkins. Both teams have said they are willing to race as "open" teams, which means they would not be guaranteed a spot in every race, but they believe that the new charter agreement will make it difficult for them to compete.
NASCAR has not yet commented on the lawsuit, but Jim France and NASCAR President Steve Phelps declined to comment when approached by FOX Sports during the Talladega race weekend on Oct. 6.
The lawsuit is the latest in a series of legal challenges to NASCAR's business practices. In 2010, several racetracks filed an antitrust lawsuit against NASCAR, alleging that the sanctioning body had used its monopoly power to force them to pay excessive fees. NASCAR settled the lawsuit in 2012.
The 23XI Racing/Front Row Motorsports lawsuit is likely to be closely watched by other NASCAR teams and stakeholders. The outcome of the case could have a significant impact on the future of the sport.
* The teams are asking for any relief necessary to restore competition and unspecified monetary damages.
* The lawsuit is being handled by Jeffrey Kessler, a noted attorney who has represented NCAA athletes in their quest to earn money from their name, image, and likeness.
* NASCAR is being represented by Chris Yates, a noted attorney who has represented the U.S. Soccer Federation, the UFC, World Aquatics, Fanatics, the Atlantic Coast Conference, and the Hollywood Foreign Press Association.
* The judge in the case is Frank Whitney, who was appointed to the bench in 2006. He is a former Army reservist, a military intelligence officer, and spent 15 years as a federal prosecutor in North Carolina.
* The case is expected to take several years to resolve.
