Two NASCAR Cup Series teams are suing the sanctioning body and its CEO Jim France over “anti-competitive practices to prevent fair competition in the sport,” according to the lawsuit.
Front Row Motorsports and 23XI Racing filed the antitrust lawsuit in the Western District of North Carolina against the preeminent stock racing series in the nation after charter negotiations ended Sept. 6.
“We share a passion for racing, the thrill of competition, and winning,” the teams said in a joint statement. “Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans.”
Both teams, which field a total four cars in the series, were the only holdouts of the current charter teams not to sign after the NASCAR-imposed deadline in September passed. With no agreement in place for FRM and 23XI for 2025, the teams run the risk of losing the charters.
23XI co-owner Denny Hamlin has been one of the most vocal critics during negotiations and has been clear in his disagreement with how the process went.
“It’s actually pretty simple, in my opinion,” Hamlin said. “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.”
NBA Hall of Famer Michael Jordan is also part of the lawsuit as co-owner of 23XI.
“Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track,” Jordan said. “I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”
Further the teams added in their statement: “NASCAR and the France family operate without transparency, have stifled competition, and control the sport of stock car racing in ways that unfairly benefit them at the expense of team owners, drivers, sponsors, partners, and fans, through the following anti-competitive practices:
- Buying a majority of the premier racetracks that are exclusive to NASCAR races;
- Imposing exclusivity deals on NASCAR-sanctioned racetracks;
- Acquiring Automobile Racing Club of America (ARCA), the only notable stock car racing series competitor;
- Preventing teams from participating in any other stock car races, while also retaining ownership over Next Gen parts and cars; and
- Forcing teams to buy their parts from single-source suppliers chosen by NASCAR.
“No other major professional sport in North America is run by a single family that enriches themselves through these kinds of unchecked monopolistic practices.
“Central to the lawsuit are the original NASCAR charters adopted in 2016 and the recently updated 2025 agreements, which the 23XI and Front Row Motorsports teams did not sign because of the unfair terms. After more than two years of attempted negotiations over the 2025 agreements, during which NASCAR continually stonewalled and refused to engage constructively, we concluded that litigation was the only way to address the anti-competitive practices of NASCAR and the France family.
“In the coming days, we will file a preliminary injunction to enable our teams to race in the next calendar year under the 2025 charter agreement, while continuing to pursue our antitrust litigation. The filing will seek discovery from both NASCAR and Jim France related to their exclusionary practices and intent to insulate themselves from any competition. 23XI Racing and Front Row Motorsports will seek treble damages for the anti-competitive terms that teams have been subject to under the 2016 charter agreement.”
23XI was founded in 2020 by Hamlin, Jordan and Curtis Polk, and FRM is owned by Bob Jenkins and has been racing full time since 2005.
23XI and FRM have retained Winston & Strawn LLP as legal counsel, led by Jeffrey Kessler.
Tom is an IndyCar writer at Frontstretch, joining in March 2023. Besides writing the IndyCar Previews and frequent editions of Inside IndyCar, he will hop on as a fill-in guest on the Open Wheel podcast The Pit Straight. A native Hoosier, he calls Fort Wayne home. Follow Tom on Twitter @TomBlackburn42.
It is very hard to be sympathetic to 23XI and FRM. Especially 23XI. All we hear is MJ and Folk are very smart and always know how to make money. There sure didn’t do there homework before becoming team owners. Nascar has been run this way since the start of the sport. Denny must have really shined it on to MJ to get involved. MJ is so use to everyone caving in to him , well not Nascar. I don’t like alot of ways the Nascar/France empire does things. I have many books from famous Nascar drivers and crew chiefs where at least once in the book they tell the story of Bill Sr. Or Jr.telling them Nascar was here before them and will be after.
Ask the former owners of Kentucky Speedway how suing Nascar went for them. And I believe that case had merit.
It’s also hard to be sympathetic to NA$CAR the way they’ve operated the last 20 years.
Ah, nothing quite so refreshing as seeing a bunch of Carolina millionaires and billionaires suing each other for a little game of redistribute the wealth – right in eyeshot of the desperate pleas for help just a few hours to the west. Classy bunch here.
This dispute will end when MJ decides to stop paying the lawyers. It is NA$CAR’s sandbox and they build the toys they use.
This dispute will end when NASCAR decides that discovery is too risky and they settle with more money going to the teams, some guaranty that the charters will be renewed under certain conditions, and probably no charters to the France family.
NASCAR is a privately owned company. If you wish to participate with them, you must follow their rules. If you don’t like their rules, go play somewhere else. Unless there is some type of discrimination, I don’t see the lawsuit going anywhere.
about time someone challenged this illegal monopoly
A monopoly is not illegal among a private company. No one restricts you, Dale, from starting your own series. Find tracks, cars, drivers. Contracts have clauses in them prohibiting certain things. How did a sperate show work for Champ Cars and Indy? They could get USAC, maybe, to sanction it. But it may be controlled by Penske. But you can start your own.
So, you are a long-time federal antitrust litigator? I didn’t think so. “A monopoly is not illegal among a private company.” Seriously?
This would not of happen if Brian Z France was running things. This is what happens when you become all inclusive. The two teams should of added discrimination and animal, child abuse charges to get more strength in their plight. You can’t put babies and pets in hot race cars, just saying.
Oh Goodness.
First, the judges in the Western Dirstrict of North Carolina will be extermely sympathetic to NASCAR. Here is why:
It is a wholly-owned series that can set its own rules.
The lawyers they employed must not be very good.
NASCAR is a true monopoly. They are not a public company and just like Augusta National, they do not have to admit anyone to the sport. Augusta National also controls who plays in the Masters.
NASCAR is a private club.
You have to play by their rules.
The suit will more than likely be dismissed.
Mr. Jenkins is a sharp business man. He should know. NASCAR is not a franchise, has no antitrust protections because it is a private company.
This has been tried before.
A little note to the keyboard warriors:
The judges could care less about Michael Jordan or Nike or anything else. The Law in on NASCAR’S side. They purchased the tracks and really do not own all of them. But they do choose who plays.
Don’t hold your breath. This isn’t the NBA. Bob Jenkins should know better. Michael Jordan will cost him a ton of money.