The dispute between NASCAR and the two teams that did not sign the charter agreement does not appear to be ending anytime soon.
23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR in federal court in North Carolina on Wednesday. The two teams that did not sign the franchise agreement accuse NASCAR and the France family of being “monopolistic.”
From the Associated Press:
“The France family and NASCAR are monopolistic bullies,” the teams said in the lawsuit, a copy of which was obtained by The Associated Press. “And bullies will continue to impose their will to hurt others until their victims stand up and refuse to be victims. That moment has already arrived.”
23XI is co-owned by Michael Jordan and Joe Gibbs Racing driver Denny Hamlin. The team has been candid about how negotiations with NASCAR unfolded during the 2024 season. The current charter agreement expired at the end of the 2024 season along with the conclusion of the current television contract.
“Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team every week on the track,” Jordan said in a statement. “I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to the teams, drivers, sponsors and fans. Today’s action shows that I am willing to fight for a competitive market where everyone wins.”
The new charter agreement will go into effect at the start of the 2025 season. The bylaws allow each full-time team in the NASCAR Cup Series to have a guaranteed starting spot in each race and a greater proportion of the cash end of the season. The charters are essentially franchise agreements and have allowed teams to regain some value by downsizing or closing entirely.
Negotiations for the new charter agreement dragged on through 2024, and Hamlin had gone on record as saying that NASCAR’s offers continued to get worse and worse. Teams wanted a larger share of television money, as sponsor revenues were no longer significant enough to keep teams profitable and competitive. Television money is divided between the NASCAR tracks, the teams and NASCAR itself, with the tracks receiving the lion’s share.
NASCAR has been owned by the France family since its inception. Jim France is currently directing the series after Brian France, his nephew, stepped down years ago. Brian France replaced his father Bill France Jr. He replaced his father, NASCAR founder Bill France Sr.
Every other full-time team in NASCAR ended up signing the new charter agreement after NASCAR’s last proposal before the regular season finale at Darlington. In a statement after the charter deal was offered, 23XI said it was “interested in engaging in constructive discussions with NASCAR” to resolve differences between the two sides.
“We share a passion for racing, the excitement of competing and winning,” the teams said in a joint statement. “Off the track, we share the belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can prosper and become a more competitive and fair sport in a way that benefits the teams, drivers, sponsors and, most importantly, the fans.”
23XI Racing has competed in the Cup Series since 2021 and fields cars for Tyler Reddick and Bubba Wallace. Front Row Motorsports first competed in the Cup Series in 2005 and has run at least one car full-time since 2009.
Front Row is looking to expand to three cars in 2025 with three charters, while 23XI Racing is also set to grow from two cars to three next season. 23XI has said it will continue to compete in the Cup Series next season even if it does not have a charter. In their lawsuit, the two teams requested a temporary injunction allowing them to compete as authorized participants in 2025.