Front Row Motorsports, one of two teams suing NASCAR in federal court, accused the stock car series on Thursday of blocking the planned purchase of a valuable charter unless the lawsuit was dropped.
In a court filing, Front Row claimed NASCAR rejected its proposed purchase of the charter from Stewart-Haas Racing (SHR), stating the series would only approve the transfer if Front Row and 23XI Racing withdrew their lawsuit.
“Specifically, NASCAR informed us that it would not approve the (charter) transfer unless we agreed to drop our current antitrust lawsuit against them,” said Front Row General Manager Jerry Freeze in an affidavit filed in the U.S. District Court of Western North Carolina.
The two teams had declined to sign NASCAR’s “take-it-or-leave-it” final revenue-sharing agreement in September, a deal that all 13 other teams accepted. Front Row and 23XI opted to challenge the terms in court.
Michael Jordan, co-owner of 23XI Racing, stated he initiated the legal fight on behalf of all teams in NASCAR’s top-tier series.
NASCAR, however, contends the lawsuit stems from dissatisfaction with the final charter agreement and has requested its dismissal.
Earlier this week, the case was reassigned to a different judge after the previous judge denied the teams’ request for a temporary injunction that would allow them to compete as chartered teams in 2025 while the case proceeds.
The latest filing, heavily redacted, outlines alleged retaliatory actions by NASCAR that the teams claim have caused irreparable harm.
Front Row and 23XI aim to expand from two full-time cars to three and have agreements with SHR to purchase one charter each, as SHR plans to downsize from four cars to one for the 2025 season.
Without charters, the teams could still compete but only as “open” teams, which lack the protections and financial benefits of chartered status.
Freeze stated in his affidavit that Front Row signed a purchase agreement with SHR in April and that NASCAR President Steve Phelps gave verbal approval for the deal in September.
However, when Front Row submitted the formal paperwork in November, NASCAR began requesting additional information.
According to Freeze, a Dec. 4 request focused on the ongoing lawsuit.
“NASCAR informed us on December 5, 2024, that it objected to the transfer and would not approve it, in contrast to the previous oral approval for the transfer confirmed by Phelps before we filed the lawsuit,” Freeze said.
“NASCAR made it clear that the reason it was now changing course and objecting to the transfer is because NASCAR is insisting that we drop the lawsuit and antitrust claims against it as a condition of being approved.”
A second affidavit from Steve Lauletta, president of 23XI Racing, disputed NASCAR’s claims that the teams were manufacturing “new circumstances” in their renewed motion for an injunction.
NASCAR also alleged the two teams were coordinating behind the scenes, which Lauletta denied.
“This is completely false,” Lauletta said.
Front Row, owned by businessman Bob Jenkins, and 23XI Racing, co-owned by retired NBA Hall of Famer Michael Jordan, three-time Daytona 500 winner Denny Hamlin, and Jordan adviser Curtis Polk, now face significant challenges.
NASCAR, which had been operating with 36 chartered teams and four open spots since the charter agreement began in 2016, announced plans to move forward in 2025 with 32 chartered teams and eight open spots.
Charters for Front Row and 23XI were rescinded, leaving the SHR charters unresolved.
The teams argue that charter status is critical under their contractual agreements with sponsors and drivers.
Operating as open teams, they say, would result in substantial financial losses.
“23XI exists to compete at the highest level of stock car racing, striving to become the best team it can be.
But that ambition can only be pursued within NASCAR, which has monopolized the market as the sole top-tier circuit for stock car racing,” Lauletta said.
“Our efforts to expand — purchasing more cars and increasing our presence on the track — are integral to achieving this goal.
“It is not hypocritical to operate within the only system available while striving for excellence and contending for championships,” he continued.
“It is a necessity because NASCAR’s monopoly leaves 23XI no alternative circuit, no different terms, and no other viable avenue to compete at this level.”
