In October, 23XI Racing and Front Row Motorsports (FRM) took a bold step, filing an antitrust lawsuit against NASCAR over the terms of the 2025 charter agreement. Both teams are seeking a better deal, arguing that the current terms are unfair and do not serve their interests. The lawsuit is part of a larger ongoing dispute about the future of chartered teams in NASCAR.
While 13 of the 15 NASCAR teams have already signed the 2025 charter agreement, 23XI and FRM have held out. Each team owns two charters, and NASCAR plans to have just 32 chartered teams racing in 2025. However, NASCAR has told the teams that the charter agreement is no longer available to them.
In response, 23XI and FRM are asking the court for an injunction, hoping to be allowed to sign the 2025 charter agreement while their lawsuit is still being decided. Though their initial request for the injunction was denied, they’ve re-filed the motion, presenting new evidence.
NASCAR Seeks to Have the Lawsuit Dismissed
In response to the lawsuit, NASCAR filed a motion to dismiss the case. They argue that 23XI and FRM have acknowledged the value of the charters, admitting that they are “worth millions of dollars,” and that NASCAR has increased the revenue available to teams. NASCAR further argues that if they had the kind of market power the plaintiffs suggest, they would be paying teams less, not more.
NASCAR has also accused Curtis Polk, a co-investor in 23XI Racing, of orchestrating a campaign of boycotts, media manipulation, and threats aimed at influencing NASCAR’s negotiations with other team owners. They claim Polk tried to rally other owners to “not break ranks” and support the lawsuit.
Curtis Polk’s Role and Public Protest
The lawsuit came after 23XI and FRM chose not to sign NASCAR's final charter proposal in September, making them the only two teams to reject the agreement. Curtis Polk, a vocal critic of NASCAR, was accused of leading efforts to sway opinion in the sport, including organizing boycotts and trying to influence the media.
Before the lawsuit was filed, Polk made his frustration with NASCAR clear. Ahead of the Southern 500 at Darlington, he wore a piece of paper pinned to his back that read: "Please don’t ask me about my Charter. I don’t want to disparage NASCAR and lose it." He also publicly criticized NASCAR’s financial arrangements, stating that teams only receive about 13% of the overall revenue, despite NASCAR generating billions in revenue. Polk estimated that drivers collectively earn about $100 million, even though the sport itself is worth much more.
The Charter Sales and What’s Next
In an attempt to address their concerns, both 23XI Racing and FRM recently purchased additional charters from Stewart-Haas Racing (SHR), which closed out the 2024 season as a four-charter team. SHR has kept only one of those charters for its new team, Haas Factory Team, leaving the rest available for sale.
However, NASCAR has yet to approve the sale of these additional charters. Both teams have requested that the court allow these sales to proceed while the lawsuit is ongoing. If the court denies this request, it’s unclear what will happen to the additional charters for the 2025 season. The fate of these charters could significantly impact both teams' plans.
Looking Ahead: The Legal Battle Continues
NASCAR has labeled the lawsuit as “baseless,” but the outcome will have far-reaching consequences for 23XI Racing, FRM, and possibly other teams in the future. The decision on the charter agreement and whether the sale of additional charters is approved will affect the structure of NASCAR going forward.
As the legal proceedings unfold, it’s clear that this battle is far from over. All eyes will be on the court’s decision and what it means for the future of chartered teams in NASCAR.