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For the past seven weeks, an intriguing off-track saga has unfolded alongside the NASCAR Cup Series Playoffs: an antitrust lawsuit brought against NASCAR by 23XI Racing and Front Row Motorsports. This legal battle stems from the contentious 2025 NASCAR Cup Series Charter Agreement, which followed over two years of negotiations between teams and NASCAR.
The Heart of the Dispute
The controversy began with a "take-it-or-leave-it" offer from NASCAR presented just before the playoffs commenced at Atlanta. Notably, 23XI Racing—co-owned by NBA star Michael Jordan and NASCAR driver Denny Hamlin—and Front Row Motorsports—owned by businessman Bob Jenkins—were the only teams that opted not to sign the agreement.
What was the injunction about?
On October 9, 2024, 23XI Racing and Front Row Motorsports filed for a preliminary injunction as part of their antitrust lawsuit. If granted, this injunction would allow both teams to maintain their status as chartered entries in the NASCAR Cup Series for the 2025 season. They also sought expedited discovery, which would give their legal teams access to documents from key NASCAR executives.
NASCAR's Response
In a court filing on October 23, NASCAR firmly rejected the injunction request, arguing that it represents "an attempt to force NASCAR into a contract on Plaintiffs’ preferred terms." NASCAR claimed that the request "falls short of meeting the demanding standard required for obtaining a mandatory injunction." They elaborated, stating:
“The Motion seeks to change the status quo, not maintain it; is about money, not irreparable harm; and fails to show a likelihood of success on the merits. This lawsuit is not about protecting competition; it’s a bid by Plaintiffs to secure more money than they could through arm’s-length negotiations. The Motion should be denied," the filing read.
Key Arguments from NASCAR
NASCAR's rebuttal rests on several key points:
1. No Extraordinary Circumstances: NASCAR asserts that the plaintiffs haven't demonstrated any extraordinary circumstances warranting the court's intervention.
2. Contradictory Claims: They highlight the contradiction in the teams denouncing the 2025 Charter Agreement as anti-competitive while simultaneously asking the court to compel NASCAR to provide them with a Charter.
3. Self-Inflicted Damage: NASCAR argues that any damage the teams claim to face is self-inflicted, stemming from their own choices rather than actions taken by NASCAR.
4. Unlikely Success on Merits: The sanctioning body believes that the antitrust claims are unlikely to succeed in court.
NASCAR further argues that the plaintiffs are attempting to benefit from a section of the Charter Agreement that releases NASCAR from claims while disregarding a reciprocal release in the same document.
A History of Cooperation
NASCAR also emphasized its history of collaboration with race teams, detailing the investments made by the France family over the years. The Charter system, introduced in 2016, aimed to reward teams that had demonstrated long-term commitment to the sport. The original agreement included mutual promises, ensuring Charter teams would have guaranteed positions at races while agreeing not to compete in other stock-car leagues.
The Negotiation Breakdown
Throughout the negotiation process, NASCAR claims to have made significant concessions, including increased media revenue for Charter teams (specific figures were redacted for confidentiality). Despite these efforts, the teams collectively boycotted the Team Owner Council meeting in April 2024, leading NASCAR to continue negotiations with individual teams.
After issuing a final offer on August 30, 2024, NASCAR reported that 13 organizations, encompassing 32 charters, accepted the agreement. However, 23XI Racing and Front Row Motorsports chose not to sign, despite being granted additional time to do so. NASCAR has stated its readiness to proceed with the 2025 Cup Series with only 32 Chartered Entries and eight open entries if necessary.
Currently, 23XI Racing and Front Row Motorsports hold two Chartered Entries each, with plans to acquire a third from the soon-to-close Stewart-Haas Racing. However, NASCAR notes that neither team has submitted a request to transfer that charter.
