In a bold move, two NASCAR teams are taking a stand against the organization’s alleged monopolistic practices, seeking a preliminary injunction to ensure their participation in next season’s charter system. 23XI Racing, co-owned by basketball legend Michael Jordan, and Front Row Motorsports, owned by Bob Jenkins, filed a lawsuit last week against NASCAR and its chairman, Jim France, claiming the organization’s revenue-sharing model stifles competition.
The charter system, akin to a franchise in other professional sports, has contractually binding terms, expiration dates, and can be revoked by NASCAR. The teams argue that the agreement, set to take effect next season, unfairly binds them to the series, its tracks, and suppliers. They claim NASCAR refused to make charters permanent, instead offering a limited extension through 2031.
23XI and Front Row, represented by top antitrust attorney Jeffrey Kessler, are seeking a court order to release them from a clause prohibiting teams from suing NASCAR. This would allow them to compete under the charter system while their antitrust case proceeds. If unsuccessful, they would be forced to compete as un-chartered teams, potentially missing out on $45 million in combined revenue.
The teams, which currently field two cars each in the elite Cup Series, intend to expand to three-car teams in 2025, with or without charters. They have requested immediate access to documents and files from six NASCAR executives, including members of the France family, to support their case.
Kessler alleges that NASCAR’s dominant control over racing stems from its history of exclusionary acts and restrictive agreements, rather than superior skill or business acumen. He believes expedited discovery requests will shed light on NASCAR’s anticompetitive practices and support a preliminary injunction ruling.
The case has significant implications for the future of NASCAR, with 23XI and Front Row seeking to level the playing field and promote fair competition. As the lawsuit unfolds, the racing world watches with bated breath, awaiting the outcome of this high-stakes battle.
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