UPDATE: 23XI and Front Row Motorsports Sue NASCAR

What’s Happening?

23XI Racing and Front Row Motorsports have filed a joint antitrust lawsuit against NASCAR. The suit comes after the two parties held out on signing NASCAR’s newest Charter Agreement in Atlanta in September.

• After months of back-and-forth negotiations, the two teams held out on NASCAR’s recent Charter Agreement. In doing so, 23XI risks losing its four charters and valuable revenue sharing with NASCAR and its tracks. Now, the two teams are joining together in a suit against NASCAR for more reasons than just the Charter Agreement.
• Six key issues are the reason for this new lawsuit. The two teams have lined out these issues in a joint press release. These include NASCAR buying ARCA, NASCAR purchasing a majority of tracks and allowing exclusivity deals with those tracks, NASCAR not allowing teams to compete in other stock car racing series, and NASCAR owning the Next Gen parts and cars while forcing teams to buy from NASCAR’s chosen parts suppliers.
• The charters are also a key factor in this lawsuit. The two stated, “After more than two years of attempted negotiations over the 2025 agreements, during which NASCAR continually stonewalled and refused to engage constructively, we concluded that litigation was the only way to address the anti-competitive practices of NASCAR and the France family.”
• By holding out on signing, 23XI and FRM are at risk of losing their charters. However, the teams plan on filing a preliminary injunction to race next year as Chartered teams. While these were the only two teams to hold out on signing the agreement, many team owners were harsh in private interviews about the terms and rushed approach from NASCAR.
• The two teams are retaining sports antitrust lawyer Jeffrey Kessler and his firm, Winston & Strawn LLP. Kessler, who NASCAR teams hired earlier this season to help with the ongoing Charter negotiations, has a track record of similar suits in a diverse lot of sports.

In that same press release, 23XI Racing co-owner Michael Jordan said:

“Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.” — Michael Jordan

UPDATE, 11:00 AM:

According to Bob Pockrass of Fox Sports, 23XI Racing will continue to race even without the injunction for 2025.

The teams’ attorney, antitrust suit legend, Jeffery Kessler, is also extremely positive about the teams odds in the court room against NASCAR. In a press conference Kessler said:

“There has never been a case that I have found that is as egregiously anti-competitive as this one. Here we have a sport where one family has basically used its power to create an absolute monopoly for the benefit of that family as opposed to being for the benefit of the teams, the drivers, the sponsors, the broadcasters, and the fans.” — Jeffrey Kessler, Co-Executive Chairman of Winston & Strawn LLP

UPDATE, 12:30 PM:

Furthermore, we’ve learned via a copy of the lawsuit that 23XI was in agreement to purchase the third Stewart Haas Racing Charter. However, that purchase is on hold until NASCAR approves the deal. Also, FRM’s SHR Charter Purchase is on hold pending NASCAR approval.

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