23XI Racing, Front Row Motorsports File Antitrust Suit Against NASCAR

By David Morgan, Associate Editor

The battle between NASCAR and the remaining teams that have yet to sign the new charter agreement took a drastic turn on Wednesday when 23XI Racing and Front Row Motorsports filed an antitrust suit against the sanctioning body in U.S. District Court.

“We share a passion for racing, the thrill of competition, and winning. 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,” the teams noted in a statement.

Leading up to the Atlanta race weekend, the new charter agreement was signed by all but 23XI and Front Row, as the two teams held out in hopes of gaining fairer terms.

Since then, both teams have been largely silent, until Wednesday’s suit filing.

In a release posted to the 23XI Racing website, the teams dive into their grievances against NASCAR, alleging the following:

“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.”

The 23XI release continued, noting that during the charter negotiations teams were “continually stonewalled” and NASCAR “refused to engage constructively.”

As such, the two teams decided that “litigation was the only way to address the anti-competitive practices of NASCAR and the France family.”

Both teams plan to file a preliminary injunction in the coming days to allow them to complete in 2025 under the new charter agreement while they continue their antitrust litigation against the sanctioning body.

“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,” the 23XI release continued.

Since the start of the charter negotiations, all three of the 23XI Racing principals, including Denny Hamlin, Michael Jordan, and Curtis Polk have remained steadfast in their belief that the teams deserve more favorable terms from NASCAR, which continues to this day as they have now filed suit.

“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,” Hamlin said.

Jordan said much of the same, explaining that his goal is a competitive market for all of the teams.

“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.”

Likewise, from Polk, who has been central in the negotiations for 23XI behind the scenes.

“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,” Polk said.

“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.”

Bob Jenkins, owner of Front Row Motorsports echoed the sentiments from 23XI, explaining his want for change to come and be beneficial for all.

“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,” Jenkins said.

“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.”