23XI Racing and Front Motorsports sue NASCAR for “anti-competitive practices”

On Wednesday morning, two NASCAR teams — Front Row Motorsports and 23XI (co-owned by Michael Jordan and Denny Hamlin) — filed a joint antitrust lawsuit against NASCAR accusing the sport’s governing body, run by the dynastic France family, of “anti-competitive and monopolistic control of the sport.” Both teams had publicly stated issues with NASCAR’s new charter agreement, which both teams refused to sign.

This jointly-filed lawsuit is an escalation after 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.”

Challenging NASCAR’s monopolistic control of the sport
The release went on to accuse NASCAR 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.” The France family has been in full control of the sport since its founding in 1948.

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

Denny Hamlin, Joe Gibbs Racing, FedEx Toyota Camry

Photo by: Nigel Kinrade / NKP / Motorsport Images

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. In the lawsuit, 23XI signals their intentions to purchase a third charter for 2025 as well.

23XI and FRM’s next move
NASCAR originally implemented a charter agreement in 2016. The new deal is meant to go from 2025 through 2031. 13 of the 15 teams in possession of charters signed the new agreement after being given a hard deadline. 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.

The lengthy release detailed their next move as well: “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.”

Denny Hamlin, 23XI co-owner
“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.”

Michael Jordan, 23XI Racing co-owner
“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. 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.”

Todd Gilliland, Front Row Motorsports, Rasmussen Air & Gas Energy Ford Mustang and Michael McDowell, Front Row Motorsports, Horizon Hobby Ford Mustang

Photo by: Rusty Jarrett / NKP / Motorsport Images

Bob Jenkins, Front Row Motorsports owner
“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. 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.”

Curtis Polk, 23XI Racing co-owner
“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. 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.”