The dispute between NASCAR and the two teams that didn’t sign the charter agreement does not appear to be ending anytime soon.
23XI Racing and Front Row Motorsports filed an anti-trust lawsuit against NASCAR in a North Carolina federal court on Wednesday. The two teams that didn’t sign the franchising 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 targets stand up and refuse to be victims. That moment has now arrived.”
23XI is co-owned by Michael Jordan and Joe Gibbs Racing driver Denny Hamlin. The team has been outspoken about the way the charter negotiations with NASCAR have gone over 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 each and every week out 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 teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”
The new charter agreement kicks in at the start of the 2025 season. The charters allow each full-time team in NASCAR’s Cup Series to have a guaranteed starting spot in every race and a greater share of purse money at the end of the season. The charters are essentially franchise agreements, and they’ve allowed teams to recoup something of value when downsizing or closing altogether.
The negotiations for the new charter agreement dragged on over the course of 2024 and Hamlin had gone on record saying that NASCAR’s offers kept getting worse and worse. Teams wanted a greater share of television money as sponsor income is no longer significant enough to run profitable and competitive teams. The TV money is split between NASCAR’s tracks, teams and NASCAR itself with the tracks receiving the largest share.
NASCAR has been owned by the France family since its inception. Jim France currently runs the series after Brian France, his nephew, stepped down years ago. Brian France took over for his father Bill France Jr. He took over for his father, NASCAR founder Bill France Sr.
Every other full-time team in NASCAR ended up signing the new charter agreement after NASCAR’s latest proposal before the regular-season finale at Darlington. In a statement after the charter agreement was offered, 23XI said that it was “interested in engaging in constructive discussions with NASCAR” to resolve the differences between the two parties.
“We share a passion for racing, the thrill of competition, and winning,” the teams said in a 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.”
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 full-time car since 2009.
Front Row is looking to expand to three cars in 2025 with three charters, while 23XI Racing is also poised 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 suit, the two teams have asked for a temporary injunction to allow them to compete as chartered entries in 2025.
