The team owners at Front Row Motorsports and 23XI Racing are taking legal action against NASCAR and CEO Jim France.
According to a statement released by the two teams, Front Row Motorsports and 23XI Racing have filed an antitrust lawsuit in the Western District of North Carolina against NASCAR and France.
The lawsuit introduction says that the France family has enriched themselves "at the expense of the premier stock car racing teams" and that this is a case about the "unlawful monopolization of premier stock car racing."
The two teams have retained lawyer Jeffrey Kessler, who was involved in the case against the NCAA that led to the current NIL (name, image, and likeness) deal in which collegiate athletes control how their image is used commercially.
Kessler also led the Freeman McNeil case in 1991 which led to the creation of the free agency in the NFL.
The two teams allege that NASCAR and the France family used anti-competitive practices while operating without transparency. The teams' statement says that NASCAR and the France family control stock car racing in ways that unfairly benefit them at the expense of team owners, drivers, fans, sponsors, and partners.
The joint statement from the two teams listed the following items:
- 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.
"We share a passion for racing, the thrill of competition, and winning," the two teams said in a 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."
Here is the opening statement in the lawsuit filed against @NASCAR by @23XIRacing and @Team_FRM. Alleges #NASCAR "exploited its economic power as the sole premier stock car racing organization in the United States."
"The France family has long been determined to protect its… pic.twitter.com/lVfgOW3RBn— Jerry Jordan (@JerryJordan_KTT) October 2, 2024
The teams and NASCAR have been trying to negotiate the extension of the current charter agreement, which began in 2016. This process has been ongoing for more than two years. The current agreement expires on Dec. 31, 2024.
The charter is the closest thing NASCAR teams have to a franchise. It guarantees entry into every race, as well as a larger portion of the prize purse in each race. According to The Athletic, chartered teams will earn a share of the $1.1 billion from the TV deal that goes into effect next year.
NASCAR distributed the original charters back in 2016 when the current agreement began. Some teams have sold theirs with the price reportedly reaching as much as $40 million per charter.
Last month, 23XI Racing and Front Row Motorsports were the only two teams who declined to sign the new charter agreement with NASCAR. This was after the sanctioning body issued a 6 p.m. deadline for its offer on Sept. 6. The lawsuit says that France extended this deadline to midnight after "initial outrage" from teams.
"Central to the lawsuit are the original NASCAR charters adopted in 2016 and the recently updated 2025 agreements, which the 23XI and Front Row Motorsports teams did not sign because of the unfair terms," the statement said.
"After more than two years of attempted negotiations over the 2025 agreements, during which NASCAR continually stonewalled and refused to engage constructively, we concluded that litigation was the only way to address the anti-competitive practices of NASCAR and the France family."
According to the statement from the two teams, they will file a preliminary injunction that will allow their cars to race under the 2025 charter agreement next season while they continue to pursue antitrust litigation.
"A true partnership, not dictatorship, is our goal," said 23XI Racing co-owner Curtis Polk. "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."