23XI Racing and Front Motorsports have filed a joint lawsuit against NASCAR accusing the governing body of "anti-competitive and monopolistic control of the sport".
Both teams have refused to sign NASCAR's new charter agreement, having stated issues with it, and released a joint statement on the launch of its antitrust case, following months of back-and-forth between the teams and NASCAR leadership.
“We share a passion for racing, the thrill of competition, and winning," read the 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.”
The two teams have accused NASCAR’s organisers, the France family that has been in full control of the series since its founding in 1948, of operating without transparency, stifling competition, and controlling the sport in ways that "unfairly benefit them at the expense of team owners, drivers, sponsors, partners, and fans".
Front Row Motorsport and 23XI included a list of what they called anti-competitive practices from NASCAR leadership:
- 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
- Forcing teams to buy their parts from single-source suppliers chosen by NASCAR
23XI Racing was founded by NBA legend Michael Jordan and three-time Daytona 500 winner Denny Hamlin in 2020, while Front Row Motorsports (FRM) has been owned by Bob Jenkins since 2005. Each team runs two full-time cars, with FRM recently announcing plans to expand to three under an agreement to purchase a charter from the defunct Stewart-Haas Racing.
NASCAR originally implemented a charter agreement in 2016 with this latest deal supposed to last from 2025 through 2031, with 13 of the 15 teams in possession of charters signing the new agreement.
Wednesday's statement goes on to accuse the sanctioning body of refusing to engage constructively and stonewalling talks between the two parties, leaving litigation as their only option.
"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 statement detailed.
"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."
Jordan, 23XI Racing co-owner, said the lawsuit is focused on providing a competitive series for all involved.
"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," he 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."
"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, Front Row Motorsports team owner, added.
"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."
Polk, 23XI Racing co-owner, feels the new charter is an attempt to weaken teams’ standing.
"A true partnership, not dictatorship, is our goal," he said. "For over two years, I have dedicated myself to championing a more fair and transparent system within NASCAR, where we recognise 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 marginalise the teams’ voices in the sport and consolidate control and the power in the hands of the France family for their sole benefit."
