On Wednesday, March 5, 2025, NASCAR filed a lawsuit against two of its teams, 23XI Racing and Front Row Motorsports, alleging that those teams have violated the Sherman Act.
Those two teams just so happen to be the ones involved in a current suit against NASCAR, where the teams allege that the series is acting as a monopoly, particularly as pertains to its charters.
Two NASCAR teams take the sport to court
On October 2, 2024,a complaint was filed with the United States District Court in the Western District of North Carolina in which plaintiffs 23XI Racing and Front Row Motorsports argued that NASCAR and Jim France are operating as a monopoly of stock car racing in America.
“This is a case about the unlawful monopolization of premier stock car racing by the France family in order to enrich themselves at the expense of the premier stock car racing teams that fans come out to see and that sponsors and broadcasters value,” the lawsuit reads in its introduction.
“The France family has realized monopoly profits through its ownership and control over the National Association of Stock Car Auto Racing (NASCAR), which has exploited its economic power as the sole premier stock car racing organization in the United States.”
In effect, the two teams argued that NASCAR has been operating as a monopoly in the way it restricts teams from racing outside of NASCAR, as well as in the way NASCAR has absorbed other American stock car series.
The problem really came to light as a result of an ongoing dispute about charters. NASCAR implemented charters in 2016; these charters guarantee drivers a spot in every Cup Series race, so long as they meet the requirements laid out by NASCAR. Because the charters have an inherent value of their own, outside entities can invest in a team via the charter, recouping their investment should the charter be sold.
The two teams suing NASCAR, 23XI and Front Row, both refused to sign the charter extension agreement in 2024, despite what they characterized as being ample pressure from the organization to do so. They argued that NASCAR wasn’t doing enough to benefit the teams.
While this lawsuit is still being sorted out in the court of law, the teams in question were awarded an injunction that allows them to operate as chartered teams in 2025, at least until the suit is settled.
NASCAR filed an appeal against that injunction on February 12, 2025.
“These injunctions misuse the judicial power to force NASCAR to treat its litigation adversaries as its business partners and confidants, undermining the mutual trust that has fueled NASCAR’s growth and success,” NASCAR said in its brief.
“Worse, the district court conjured from thin air a categorical ban on sports leagues including releases broad enough to encompass antitrust claims in their agreements – eliminating the need to prove anticompetitive conduct, a crucial element.”
The teams will have to respond by March 14, 2025, but NASCAR has decided not to take this suit sitting down.
More on NASCAR’s charters and lawsuits:
👉 NASCAR charter dispute escalates into antitrust lawsuit: What it means and what to expect
👉 Explained: IndyCar’s charter system, and what it means for the business of racing
NASCAR responds by taking those teams to court
On Wednesday, March 5, 2025, NASCAR filed a countersuit against 23XI Racing, Front Row Motorsports, and 23XI Racing co-owner and longtime Michael Jordan business manager Curtis Polk.
In this suit, NASCR has alleged that 23XI and FRM violated the Sherman Act, or, acted in such a way that they violated antitrust law.
“We think 23XI and Front Row are misusing the antitrust laws and alleging baseless monopolization claims in order to try to force a renegotiation,” NASCAR attorney Chris Yates said on a call with reporters.
“NASCAR has no intent and no interest in renegotiating the terms of the 2025 charter.”
In its suit, NASCAR alleges that Curtis Polk attempted to organize a boycott of a charter-required team owner meeting, then another boycott of a qualifying event.
While the latter boycott didn’t happen, NASCAR has stated that Polk’s boycotts led to teams colluding to get more favorable terms from the charter agreement. Had that collusion not happened, NASCAR states, then the charter agreements would have included fewer beneficial terms for race teams.
The filing also asks for the injunction guaranteeing 23XI and FRM a chartered slot in the sport be removed.
Jeffrey Kessler, the attorney representing 23XI and FRM, stated, “My clients’ lawsuit has always been about transforming NASCAR into a more competitive and fair sport for the benefit of drivers, fans, sponsors and teams because of their love of the sport.
“Every major sport goes through a transition to competition when antitrust claims are asserted, and that moment has come for NASCAR.
“Today’s baseless filing changes nothing. We are confident in the strength of our case and look forward to presenting it at trial.”
Both suits are clearly still in progress, with little indication of what the ultimate ruling may be. Whatever happens, though, is sure to be a transformative moment for the Cup Series.
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