23XI Racing and Front Row Motorsports filed an antitrust lawsuit Wednesday against NASCAR and NASCAR Chairman Jim France in U.S. District Court, stating, “NASCAR has unlawfully maintained its monopoly position for offering a top-tier stock car racing series in the United States in violation of the Sherman Antitrust Act.”
In a joint statement, 23XI Racing and Front Row Motorsports said: “We share a passion for racing, the thrill of competition, and winning. Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans.”
When reached by NBC Sports on Wednesday morning, NASCAR stated it had no comment as it reviewed the lawsuit.
23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, were the only Cup teams not to sign new charter agreements by the Sept. 6 deadline. The new charter agreement begins in 2025 and goes through 2031 — the length of the new media rights deal.
The lawsuit states, “The France family and NASCAR are monopolistic bullies. And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims. That moment has now arrived.”
23XI Racing and Front Row Motorsports seek a jury trial. The teams also seek in the lawsuit:
- “A preliminary injunction that will allow them to accept and operate under the 2025 Charter Agreement until the case is resolved.
- “Permanent injunctive relief to end NASCAR’s exclusionary practices and restore competition in the relevant market.
- “Trebled monetary damages for the harm suffered by Plaintiffs during the past four years as a result of having to compete under the anticompetitive, below market terms of the 2016 Charter Agreement and for the harm that Plaintiffs will suffer going forward for having to compete under the anticompetitive terms of the 2025 Charter Agreement while they litigate this case through trial.”
Without relief, the lawsuit states, 23XI Racing and Front Row Motorsports “will continue to suffer antitrust injury. Either they will be competing under the anticompetitive and monopolistic terms of the 2025 Charter Agreement—if a preliminary injunction is granted to prevent Defendants from applying the release in that agreement against Plaintiffs’ antitrust claims — or Plaintiffs will be required to race as “open” teams, suffering even greater antitrust injuries, with the substantial threat of eventually being driven out of business entirely.”
23XI Racing and Front Row Motorsports stated Wednesday: “The filing will seek discovery from both NASCAR and Jim France related to their exclusionary practices and intent to insulate themselves from any competition. 23XI Racing and Front Row Motorsports will seek treble damages for the anti-competitive terms that teams have been subject to under the 2016 charter agreement.”
While all the other Cup teams signed the charter agreement, many stated they weren’t thrilled with all the details.
Car owner Rick Hendrick said last month on why he signed the agreement: “I was just tired. I think we got enough to protect the charters and not everybody was happy.”
Two years ago, members of the negotiating committee for teams met with media. Curtis Polk, also an owner in 23XI Racing, said at the time, “The economic model is really broken for teams.” Jeff Gordon, vice chairman of Hendrick Motorsports, said at the time, “Where we’re currently at is not sustainable.”
The lawsuit noted that only eight of the original 19 teams that received charters in 2016 remain in the sport.
The lawsuit stated that NASCAR gave teams a final version of the charter at 5 p.m. ET on Sept. 6 and had to sign by 6 p.m. That deadline was extended to midnight.
The lawsuit stated: “Faced with a take-it-or-leave-it offer, and no competing opportunity for premier stock car racing in the United States, most of the teams concluded that they had to sign. One team described its signing as ‘coerced,’ and another said it was ‘under duress.’ A third team said, NASCAR ‘put a gun to our head[s]’ and we ‘had to sign.’ A fourth described NASCAR’s tactics as that of a ‘communist regime.’ None of these teams would permit their identities to be publicly revealed for fear of retribution from NASCAR.”
This story will continue to be updated. Check back for the latest.