23XI Racing and Front Row Motorsports have scored a major legal victory against NASCAR in their ongoing antitrust lawsuit, marking a significant win for both teams and increasing pressure on the racing body to reach a settlement.
A federal judge in Charlotte, North Carolina, ruled in favor of 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and Bob Jenkins’ Front Row Motorsports. The ruling stated that NASCAR holds monopoly power in the market for premier stock-car racing and dismissed NASCAR’s argument that teams could simply compete in other series such as Formula 1 or IndyCar.
According to the teams, NASCAR’s Cup Series is the only buyer in the market for top-level stock-car racing, a claim supported by expert economist Dr. Daniel Rascher, who noted that other forms of racing are not direct substitutes. NASCAR had countered by accusing the teams of conspiring to negotiate new charter agreements together, but U.S. District Judge Kenneth Bell rejected that claim, stating NASCAR cannot redefine the market after making its own legal argument.
The lawsuit was originally filed when 23XI and Front Row refused to sign new charter extensions last year, making them the only two of 15 organizations to decline. Charters are vital to NASCAR’s business structure as they guarantee race access and revenue for teams. Without them, both 23XI and Front Row have raced this season as unchartered teams, earning significantly less prize money.
Despite mediation attempts and private negotiations, no agreement has been reached, and the case is now set for trial on December 1. Attorney Jeffrey Kessler, representing the teams, praised the decision, saying the court’s ruling confirms that NASCAR possesses monopoly power. He added that the trial will now focus on whether NASCAR used that power to harm teams, pledging to fight for all teams, drivers, partners, and fans.
NASCAR responded by defending its long history and business practices, saying it built America’s top motorsport through hard work and major investments over the past 77 years. The organization maintained that it has done nothing anticompetitive and described the court’s decision as legally flawed, promising to challenge it in court and, if necessary, in the Fourth Circuit.
Most other NASCAR teams have already signed the new charter agreements and urged both sides to settle. However, reports suggest negotiations have stalled over the amount of damages and legal fees sought by 23XI and Front Row. If NASCAR loses the case, the entire charter system — a key part of its structure — could face a major overhaul or even be dismantled.
Adding to the momentum for the teams, Judge Bell last week dismissed NASCAR’s counterclaim against Curtis Polk, Michael Jordan’s longtime business manager and a co-owner of 23XI Racing. The decision marks another victory for the teams as they prepare for what could be a landmark trial in December that could reshape the future of NASCAR’s business model.
