23XI Racing and Front Row Motorsports have filed a lawsuit against NASCAR and its CEO, Jim France, in the Western District of North Carolina.
The suit alleges to anti-competitive practices by NASCAR, including a lack of transparency and an unfair dominance affecting race teams, drivers, sponsors, and fans.
Jeffrey Kessler, a renowned antitrust and sports lawyer, is leading the charge in this legal challenge. Kessler has commented on the lawsuit, claiming that NASCAR “will have to change.” He explained, as quoted by RACER:
“This is reminiscent for me of many sports that have gone through a transformative model.
A general view of racing during the NASCAR Cup Series Hollywood Casino 400 Presented by ESPN BET at Kansas Speedway on September 29, 2024 in Kansas City, Kansas. Antitrust lawyer claims NASCAR “will need to change.”
Chris Graythen/Getty Images
“(It’s) sort of a moment when the legal style basically confronts them and says, either you’re going to voluntarily change or you’re going to be changed and you can either get on the bus or get run over by the bus.
“No one wanted this litigation but NASCAR didn’t really give these teams any choice — you either submit to the bully or you fight. They’re going to fight.
“We think at the end of the day, NASCAR’s going to have to change because that’s what the legal system is going to require.”
The backdrop to this legal action has been the growing tensions over the 2025 Charter Agreement. Lengthy negotiations have highlighted key concerns over issues like permanent charters, revenue sharing, and governance involvement.
Denny Hamlin, co-owner of 23XI Racing and a Cup Series driver, commented on the lawsuit in a press release from both teams:
“It’s actually pretty simple in my opinion. When I look around, I see that the best and most competitive sports in the world understand that when teams thrive, fans benefit, and that everyone who invests in making the sport a success should share fairly in that success. With the right changes, we can certainly make that a reality in racing.”
The lawsuit filed by these teams is not just about financial restructuring; it represents a call for a more equitable playing field within NASCAR. Curtis Polk, co-owner of 23XI Racing, also explained:
“A true partnership, not dictatorship, is our goal. For over two years, I have dedicated myself to championing a more fair and transparent system within NASCAR, where we recognize the importance of the France family and the sanctioning body, but do what is best for all stakeholders. The charter that was forced on the teams with only hours’ notice does not accomplish these objectives. The new charter is an attempt to further marginalize the teams’ voices in the sport and consolidate control and the power in the hands of the France family for their sole benefit. I hope our actions today lead to a future of collaboration for this great sport we love.”
Front Row Motorsports owner Bob Jenkins noted:
“I have been part of this racing community for 20 years and couldn’t be more proud of the Front Row Motorsports team and our success. But the time has come for change. We need a more competitive and fair system where teams, drivers, and sponsors can be rewarded for our collective investment by building long-term enterprise value, just like every other successful professional sports league.”
