In a bold move that has sent shockwaves through the motorsport community, 23XI Racing and Front Row Motorsports have filed a federal antitrust lawsuit against NASCAR and its chairman, Jim France. The lawsuit alleges that NASCAR’s business practices are monopolistic, stifling competition and unfairly controlling the stock car racing industry.
The Allegations
The lawsuit, filed in October 2024, accuses NASCAR of violating the Sherman Antitrust Act by imposing restrictive agreements that limit the ability of racing teams to compete freely. The plaintiffs argue that NASCAR’s control over race scheduling, track selection, and revenue distribution creates an environment where teams are forced into economically unfavorable conditions. They claim that NASCAR’s practices have led to a monopolistic grip on the sport, preventing the emergence of rival racing series and limiting opportunities for teams that do not conform to NASCAR’s terms.
The Plaintiffs’ Perspective
23XI Racing, co-owned by NBA legend Michael Jordan and NASCAR driver Denny Hamlin, along with Front Row Motorsports, contend that NASCAR’s charter system, established in 2016, unfairly limits competition by binding teams to the series under economically unviable terms. They argue that the charters, which guarantee entries and revenue sharing, are structured in a way that suppresses team revenues and autonomy. The teams are seeking more equitable revenue distribution, greater input in governance, and the establishment of permanent charters that would provide stability and fair competition within the sport.
NASCAR’s Response
NASCAR has denied the allegations, asserting that its practices are within legal bounds and essential for maintaining the sport’s integrity and competitive balance. The organization filed a motion to dismiss the lawsuit, contending that the plaintiffs failed to present sufficient evidence of antitrust violations. However, in January 2025, U.S. District Judge Kenneth D. Bell denied NASCAR’s motion to dismiss, stating that the plaintiffs have presented plausible antitrust claims that warrant further examination. This decision allows the case to proceed, with a trial date set for December 1, 2025.
Implications for the Sport
This lawsuit brings to light longstanding concerns about the balance of power within NASCAR and its impact on teams, drivers, and the overall competitiveness of the sport. The outcome of this legal battle could have far-reaching implications, potentially leading to significant changes in how NASCAR operates, how revenues are shared, and how decisions are made regarding race scheduling and team participation.
Looking Ahead
As the trial date approaches, the motorsport community will be closely watching the proceedings. The case not only challenges NASCAR’s current operational structure but also raises broader questions about fairness, competition, and the future direction of stock car racing in the United States.
