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NASCAR has filed a lawsuit against 23XI Racing and Front Row Motorsports, accusing both teams of "willfully" violating antitrust laws in an effort to dismantle the Charter system for financial gain. The lawsuit, submitted Wednesday in the Western District of North Carolina and obtained by USA TODAY Sports, claims that the two teams conspired to disrupt the agreement that guarantees 36 starting spots each race weekend.
The legal action also includes Curtis Polk—Michael Jordan’s longtime agent—as a defendant. Jordan, along with Denny Hamlin and Polk, co-owns 23XI Racing, while Front Row Motorsports is owned by Bob Jenkins, a successful restaurant franchisee.
Countersuit Follows Earlier Claims Against NASCAR
This lawsuit comes in response to 23XI Racing and Front Row Motorsports filing their own suit against NASCAR in October, accusing the organization of being "monopolistic bullies." Their lawsuit alleged that NASCAR violated the Sherman Antitrust Act by imposing unfair terms that restricted teams from competing freely.
The dispute revolves around the Charter agreement presented in September, just ahead of the NASCAR playoffs. While most teams agreed to the terms, 23XI Racing and Front Row Motorsports were the only ones to reject the deal.
NASCAR Accuses Teams of Coordinated Anticompetitive Conduct
According to NASCAR’s lawsuit, the two teams engaged in a coordinated effort to challenge the structure of the Charter system due to dissatisfaction with its financial terms.
“This is not the first time that 23XI and FRM have sought to impose their viewpoints, and those of their counsel, on the racing teams writ large,” the lawsuit stated. “And it is truly ironic that in trying to blow-up the Charter system, 23XI and FRM have sought to weaponize the antitrust laws to achieve their goals.”
Polk Accused of Unethical Negotiation Tactics
NASCAR further alleges that Curtis Polk played a key role in orchestrating an “illegal conspiracy” to undermine the business model, with his tactics dating back to June 2022. The lawsuit claims Polk violated the Sherman Antitrust Act by making boycott threats during charter negotiations.
NASCAR also likened the efforts of Polk and the two teams to operating as an “illegal cartel” through coercive and threatening behavior aimed at pressuring the organization.
"Curtis Polk knowingly and actively orchestrated and participated in this illegal conspiracy, while working as a member of the TNC on behalf of the (Race Team Alliance) and aiding 23XI’s and Front Row’s participation in the scheme, also constituting a violation of Section 1 of the Sherman Act, 15 U.S.C. § 1," the lawsuit stated.
As the legal battle unfolds, the outcome could have significant implications for NASCAR’s Charter system and the way teams operate within the sport.
