In a legal battle that could have a substantial effect on the future of NASCAR racing, 23XI Racing and Front Row Motorsports find themselves embroiled in an antitrust lawsuit against NASCAR, risking their ability to participate in upcoming races. Both teams are challenging what they describe as monopolization practices by the sport, claiming these methods serve to benefit the founding France family while disadvantaging the teams.
The lawsuit hinges on accusations that NASCAR has engaged in “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,” via PlanetF1.
Allegations include a range of anti-competitive practices, such as exerting control over racetracks and mandating exclusivity deals, which limit teams’ ability to race elsewhere.
The teams are seeking to use the antitrust discovery process to examine NASCAR’s operations over the last nine years, requesting access to records within five business days—a move NASCAR calls an attempt “to use the antitrust discovery process as a weapon.”
Co-owners of 23XI Racing, Denny Hamlin, driver of the #11 FedEx One Rate Toyota, and NBA Hall of Famer, Michael Jordan talk on the grid after the NASCAR Cup Series YellaWood 500 at Talladega Superspeedway on October 06, 2024 in Talladega, Alabama. 23XI Racing and Front Row Motorsports are suing NASCAR for antitrust violations.
Chris Graythen/Getty Images
NASCAR has responded to the lawsuit by firmly denying the validity of these claims, labeling the suit “meritless” and accusing the teams of attempting to renegotiate terms they had previously declined. According to NASCAR, the lawsuit is seen as a tactic to “obtain commercial agreements they previously rejected, and to attempt to extort more favorable contract terms.”
As part of its defense, NASCAR maintains that flexibility has been shown, pointing to extended deadlines for the Charter Agreements, which 23XI Racing and Front Row Motorsports ultimately refused to sign.
Underpinning this legal clash is the Charter Agreement, a system implemented in 2016 with the intent of offering guaranteed race spots and boosting team asset value. The revised 2025 Charter Agreements have sparked contention, prompting 23XI and Front Row Motorsports to abstain from signing. The deadline for signing these agreements has since lapsed, which has led NASCAR to plan for a 2025 season with only 32 charter entries. NASCAR has been clear that the teams do not necessarily require Charters to participate in races, but it’s fair to say that 23XI and Front Row Motorsports could miss out on races if they enter as an open entry.
This means they must qualify against chartered teams without the safety net of guaranteed entries. However, they are currently negotiating the purchase of Charters from Stewart-Haas Racing, pending approval, which would ensure their participation.
As the legal proceedings evolve, NASCAR has stated it is “working on reallocating funds that Plaintiffs would have received to increase prize money and other special awards for the 2025 season for the benefit of teams that timely executed 2025 Charters, as well as Open teams who can compete to win the increased prize money and other special awards.”
Fox Sports journalist Bob Pockrass, posted the following to X (formerly Twitter), explaining the issue these teams now face:
“From filing today, NASCAR says it’s planning on 32 chartered teams. What isn’t clear is what happens to SHR charters that have agreements to be bought (one each) by 23XI and FRM. But 23XI and FRM have said if no injunction, they’d compete as open cars (and yes could miss show).”
The lawsuit unfolds against rising operational costs and financial strain on even the highest-performing teams this year. But there may be larger issues looming for the likes of 23XI and Front Row Motorsports.
