On Wednesday morning, two NASCAR teams – Front Row Motorsports and 23XI (co-owned by Michael Jordan and Denny Hamlin) – filed a joint antitrust lawsuit against NASCAR, accusing the game's governing body, run by the dynastic France family, of “anti-competitive activities and monopolistic control of the sport ” Both teams have publicly stated problems with the brand new NASCAR charter agreement, which each teams have refused to sign.
This jointly filed lawsuit represents an escalation after months of ongoing disputes between teams and NASCAR management.
“We are united by the passion for racing, the thrill of competition and victory,” we read in a joint statement. “Beyond the race track, we share the belief that change is necessary in the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in a way that benefits teams, drivers, sponsors and, most importantly, fans.”
Challenging NASCAR's monopoly control over the game
The release went on to accuse NASCAR of operating without transparency, stifling competition and controlling the game in a way that “unfairly benefits them at the expense of team owners, drivers, sponsors, partners and fans.” The France family has had full control of the game since its founding in 1948.
Front Row Motorsport and 23XI posted a listing of so-called anti-competitive practices by NASCAR management:
- Buying many of the top racetracks which might be exclusive to NASCAR racing
- Enforcing exclusivity agreements at NASCAR-sanctioned racetracks
- Acquisition of the Automobile Racing Club of America (ARCA), the one significant competitor within the stock automotive racing series
- Preventing teams from participating in every other stock automotive races, while retaining ownership of next-generation parts and cars
- Forcing teams to purchase parts from single-source suppliers chosen by NASCAR
Denny Hamlin, Joe Gibbs Racing, FedEx Toyota Camry
Photo: Nigel Kinrade / NKP / Motorsport Images
23XI Racing was founded by NBA legend Michael Jordan and three-time Daytona 500 winner Denny Hamlin in 2020, while Front Row Motorsports (FRM) has been owned by Bob Jenkins since 2005. Each team runs two full-time cars, which FRM recently announced plans to do expand the corporate to a few as a part of a charter purchase agreement from the now-defunct Stewart-Haas Racing. In the lawsuit, 23XI signals its intention to buy a 3rd charter also for 2025.
November 23 and one other FRM move
NASCAR originally implemented the charter agreement in 2016. The recent agreement is scheduled to run from 2025 to 2031. 13 of the 15 teams with charters signed the brand new agreement after setting a tough deadline. Wednesday's statement accuses the sanctioning body of refusing to have interaction constructively and obstructing talks between the 2 sides, leaving the one choice to court proceedings.
The lengthy announcement also detailed their next move: “In the approaching days, we are going to file a preliminary injunction to permit our teams to race in the subsequent calendar yr under the 2025 charter agreement while continuing the antitrust investigation. The filing will seek discovery from NASCAR and Jim France regarding their exclusionary practices and intention to isolate themselves from all competition. 23XI Racing and Front Row Motorsports will seek treble damages for the anti-competitive conditions the teams were subjected to under their 2016 charter agreement. “
Denny Hamlin, co-owner of 23XI
“I believe it's quite easy. When I go searching, I see that the very best and best sports on the planet understand that when teams thrive, fans profit, and that everybody who invests in the game's success should share in that success fairly. With the suitable changes, we will definitely make this a reality in racing. “
Michael Jordan, co-owner of 23XI Racing
“Everyone knows that I actually have all the time been a fierce competitor and that may to win drives me and your complete 23XI team every week on the track. I really like racing and the eagerness of our fans, but the way in which NASCAR is run today is unfair to the teams, drivers, sponsors and fans. Today's motion shows that I’m able to fight for a competitive market where everyone wins.
Todd Gilliland, Front Row Motorsports, Rasmussen Air & Gas Energy Ford Mustang and Michael McDowell, Front Row Motorsports, Horizon Hobby Ford Mustang
Photo: Rusty Jarrett / NKP / Motorsport Images
Bob Jenkins, owner of Front Row Motorsports
“I actually have been a component of this racing community for 20 years and I couldn't be more pleased with the Front Row Motorsports team and our success. But it's time for a change. We need a more competitive and fair system where teams, drivers and sponsors may be rewarded for our collective investments by constructing long-term enterprise value, just like several other successful skilled sports league.
Curtis Polk, co-owner of 23XI Racing
“Our goal is true partnership, not dictatorship. For over two years, I actually have been dedicated to advocating for a fairer and more transparent system in NASCAR, where we recognize the importance of the French family and the sanctioning body, but do what’s best for all parties involved. A statute imposed on teams with only a number of hours' notice doesn’t achieve these goals. The recent statute is an try and further marginalize the teams' voices in the game and consolidate control and power within the hands of the France family for his or her exclusive profit. I hope that our actions today will lead to a way forward for cooperation for this great sport we love.
