NASCAR Brands 23XI And FRM Antitrust Lawsuit ‘Meritless’ As More Details Emerge

NASCAR has branded the antitrust lawsuit filed by 23XI Racing and Front Row Motorsports as “meritless.”

The lawsuit, filed in North Carolina, accuses NASCAR and its CEO, Jim France, of engaging in monopolistic practices that disadvantage racing teams and unduly benefit NASCAR’s business interests. The plaintiffs, co-owned by well-known figures such as NBA legend Michael Jordan and renowned NASCAR driver Denny Hamlin, allege that NASCAR’s actions have unfairly enriched the sanctioning body at the expense of their teams.

NASCAR’s response has been firm. The organization asserts that the claims brought forward by 23XI Racing and FRM lack a substantial basis, describing them as “baseless antitrust claims.”

NASCAR further contends that this lawsuit is an attempt by the teams to renegotiate commercial agreements they had previously refused. A newly emerged filing statement claims:

“Plaintiffs have filed a meritless suit against NASCAR alleging baseless antitrust claims in order to obtain commercial agreements they previously rejected, and to attempt to extort more favorable contract terms.”

The lawsuit itself challenges several of NASCAR’s business practices as anti-competitive. According to the complaint, NASCAR is accused of acquiring racetracks, exclusive rights agreements, and imposing exclusivity deals, which critics suggest disrupt competitive fairness. The legal claim also challenges NASCAR’s acquisition of the Automobile Racing Club of America (ARCA) as a further means of consolidating its influence within the racing world. The central contention from 23XI Racing and FRM relates to the management and distribution of charters for teams, with both teams refusing to sign new agreements citing lack of fairness and transparency.

Amid these legal proceedings, NASCAR is determined to continue its operations as planned, preparing for the next racing season with 32 charters. The filing continued:

“NASCAR has taken steps, consistent with its contractual obligations to other Charter Teams, to plan for a season with only 32 Charters.

“NASCAR 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.”

On the other side, 23XI Racing and FRM are preparing for a protracted legal battle. In efforts to mitigate the repercussions of losing their charters, the teams filed motions seeking a preliminary injunction to continue operations pending the lawsuit’s outcome. This injunction aims to prevent NASCAR from withdrawing their charters.

Whilst speaking on his ‘Actions Detrimental‘ podcast, Hamlin explained why they felt this move was necessary. He commented:

“We stated that we’ll be filing for an injunction. That’s the first thing that has to happen.

“The injunction is basically we’re going to seek relief, and in injunctions, you typically have to show — again, I’m not a lawyer, so be careful here — you have to show irreparable harm if you don’t stop it.

“We’re trying to stop NASCAR from taking our charters. Obviously, there would be massive irreparable harm there. We’re going to go to the courts and say listen, let us operate as a chartered team while this lawsuit goes on over the next year to two years. If you lose your charters and you win the lawsuit, then what? You can’t go back. It’s going to be tough to operate that way.

“As 23XI, we’re prepared for any outcome. I think Michael [Jordan] has stated and I’ve stated to the team we will not let this affect our employees whatsoever in any kind of way, and any financial distress is going to have to fall directly on the owners. It will not fall on our people whatsoever. We will not allow that to happen.”