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The 43 pages of 23XI and Front Row Motorsports’ antitrust lawsuit against NASCAR contain tons of information. Fans and insiders have speculated on some of this information, while some of it is new to the public. Here are three more things we learned from the 23XI/FRM lawsuit.
Entering the September race weekend at Atlanta Motor Speedway, NASCAR hopes were high. It was the first Playoff race, and underdogs had a chance to advance.
However, there was no word on the new Charter Agreement despite rumors NASCAR wanted the deal done before the Playoffs. Suddenly, on Saturday, Sept. 7, news, NASCAR had allegedly forced teams into signing the new Agreement, well, all except two.
The rumors quickly hit the market, with anonymous owners saying that they felt pressured that NASCAR was a “communist regime.” Some owners signed because they thought this was as good as it would get, but we now know more about that chaotic Friday night. Of course, this is all alleged.
Per page 29 of the lawsuit:
“On September 6, 2024, NASCAR executed its monopsony power to full effect. It sent what it declared to be the final version of the 2025 Charter Agreement to all of the racing teams at approximately 5:00 p.m. and told the teams they had a 6:00 p.m. deadline to sign the more than 100-page Agreement or risk losing their charters.”
This exercise confirms not only the size of the new Agreement but also the ridiculous one-hour deadline given by NASCAR.
While the deadline was harsh, NASCAR executives allegedly wanted to help teams by granting an extension. However, this was with the caveat that if several of the 15 teams held out, NASCAR would take everything away.
Furthermore, on page 29, more alleged aggression from NASCAR is cited:
“After initial outrage from the teams, Jim France and other members of NASCAR’s senior leadership started calling teams to tell them NASCAR would extend the signing deadline to midnight, but it would eliminate the charter system altogether for 2025 and beyond if a substantial number of teams did not sign by that deadline.”
NASCAR wanted to give the teams wiggle room but at the risk of shattering NASCAR financial structure as a whole. However, details of what the 13 signees signed may be just as interesting as this exchange from NASCAR.
Page 29 holds even further alleged information about the 2025 NASCAR Charter Agreement. Many rumors circulated about the agreement’s terms, one of which concerned NASCAR’s business relationships with the teams.
However, on page 29, we learned more about what exactly the 13 signees agreed to:
“The take-it-or-leave-it offer from NASCAR included numerous one-sided, monopolistic economic terms that were far less than the teams would receive in a competitive market. It did not provide a fair split of revenues so that the teams would have a chance to earn a reasonable return on their investment. It seized control over team intellectual property rights, to be used for NASCAR’s benefit.”
The alleged revenue terms are no surprise. However, the line about intellectual property rights is rather interesting. While this allegation is vague, what it could include is just as ambiguous.
Intellectual property rights could include race-related items such as setups for different tracks or the iconic typefaces used by teams for their car numbers.
While we do not know what this includes yet, this line will be one to listen for as the case moves toward court or a settlement. Once we know more, this could be the most significant development of the 2025 Charter Agreement.
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