NASCAR Faces Lawsuit Over Charter Agreements and Antitrust Laws

CHARLOTTE, N.C. — In a bold move to bolster their influence and revenues, NASCAR teams 23XI Racing and Front Row Motorsports (FRM) filed a lawsuit against NASCAR and its chairman, Jim France, in federal court, claiming the sanctioning body’s actions violate antitrust laws. The lawsuit, submitted on Oct. 2, outlines allegations that NASCAR’s restrictive practices have hindered competition in stock-car racing.

The conflict centers around a new charter agreement for the 2025 season, where both teams have claimed that terms put forth by NASCAR do not provide a viable economic model. The case has gained significant attention as it could reshape the landscape of NASCAR racing.

In a recent update from March 14, 2025, 23XI and FRM submitted their response to NASCAR’s appeal against a December ruling, which mandated that both teams be allowed to race as chartered teams in 2025, each with three charters. A hearing on this appeal has been scheduled for May 9 in the U.S. Court of Appeals in Richmond, Virginia.

“The injunction maintains the status quo for the 2025 season, allowing a jury to assess the antitrust claims without disruption to both parties,” stated the teams’ brief regarding the ruling.

The case arises from a disagreement regarding the market definition related to NASCAR Cup racing. The teams argue that NASCAR restricts the market by limiting participation, while NASCAR contends that the definition of the market should encompass the broader field of motorsports.

“The charters offer significantly less revenue and less favorable terms compared to an unrestricted market,” the teams’ legal brief argues, claiming that they are unable to earn satisfactory returns on their investments, which reportedly amount to tens of millions of dollars each year.

The situation escalated further when NASCAR filed a counterclaim alleging anti-competitive behavior by 23XI, co-owned by NBA legend Michael Jordan, and FRM during the charter agreement negotiations. NASCAR accused team executives of attempting to organize a boycott against a charter-required meeting, as cited in court documents.

“We believe 23XI and FRM are misappropriating antitrust laws for personal gain,” NASCAR attorney Chris Yates stated in a conference call with reporters. “NASCAR has no intent to renegotiate the terms of the 2025 charter.”

In a contrasting view, teams’ attorney Jeffrey Kessler claimed NASCAR’s counterclaim serves as a “meritless distraction” intended to thwart their goals of achieving a fair competition structure. “Our lawsuit aims to transform NASCAR into a fairer sport for everyone involved,” Kessler said.

In December 2024, U.S. District Court Judge Kenneth Bell denied NASCAR’s motion to dismiss the case, stating that there are substantive issues that need a jury’s consideration. “Whether NASCAR has violated antitrust law is not clear at this juncture, and a jury must weigh the evidence,” Judge Bell’s ruling noted, accentuating that the case will proceed to trial.

Looking ahead, the trial is set for December 1, 2025, meaning significant developments are anticipated leading up to the event. The outcome could greatly influence the structure and governance of NASCAR, reshaping how teams negotiate their operating agreements.

As this legal battle unfolds, both NASCAR and the involved racing teams are preparing for additional court appearances, with the potential for a significant impact on the sport’s economic framework and competitive landscape.