NASCAR has escalated its ongoing dispute with 23XI Racing, co-owned by Michael Jordan, and Front Row Motorsports (FRM) by filing a countersuit alleging antitrust violations. This move comes in response to a lawsuit filed by the two teams challenging the terms of the 2025 charter agreement.
The core of the conflict revolves around the new charter agreements presented to NASCAR Cup Series teams in September 2023. These agreements, which dictate team participation and revenue sharing, are crucial to the financial stability of NASCAR teams. NASCAR presented the teams with what has been described as a “take-it-or-leave-it” offer, giving them a mere 48 hours to sign before the start of the playoffs. Out of the 15 teams presented with the agreement, only 23XI and FRM refused to sign.
In its countersuit, NASCAR accuses 23XI and FRM of “willfully” violating antitrust laws by orchestrating “anticompetitive collective conduct.” The countersuit specifically names Curtis Polk, Michael Jordan’s longtime agent and a key figure in 23XI Racing, as a defendant. NASCAR alleges that the two teams, under Polk’s leadership, engaged in a scheme to pressure NASCAR into accepting their desired terms.
NASCAR further claims that 23XI and FRM attempted to influence media campaigns, interfere with broadcast agreement negotiations, threaten boycotts of NASCAR events, and organize a group boycott of a NASCAR Team Owner Council meeting. The organization contends that these actions were designed to force NASCAR to renegotiate the charter agreement on terms favorable to the two teams.
The charter system, introduced to provide stability to NASCAR teams, guarantees chartered teams entry into every Cup Series race and a larger share of purse money. Before the charter system, teams closing operations had limited assets to liquidate. The current dispute centers on the distribution of revenue, particularly television revenue, which has become a significant point of contention. Teams argue that increasing operational costs and declining sponsorship have made a larger share of media revenue essential for their financial viability.
The previous charter agreement expired at the end of the 2024 season. By refusing to sign the new agreement, 23XI and FRM technically forfeited their charter rights for 2025. However, they successfully obtained an injunction, allowing them to continue operating as chartered teams during the ongoing litigation.
NASCAR’s legal team has emphasized that the organization believes it holds significant leverage in the negotiations. The France family, which owns NASCAR, has historically maintained tight control over the sport. This tradition dates back to Bill France Sr., who famously resisted driver unionization. Currently, 80-year-old Jim France serves as NASCAR’s chairman.
In response to NASCAR’s countersuit, Jeffrey Kessler, the attorney representing 23XI and FRM, issued a statement dismissing the claims as a “meritless distraction.” He argued that NASCAR had initially agreed to joint negotiations, which subsequently failed, leading NASCAR to impose individual charter terms that most teams felt compelled to accept. Kessler asserted that the lawsuit aims to create a more competitive and fair environment for drivers, fans, sponsors, and teams. He expressed confidence in the strength of his clients’ case and stated their intention to proceed to trial.
The dispute underscores the growing tension between NASCAR and its teams over revenue sharing and governance. As the legal battle unfolds, the outcome could have significant implications for the future of NASCAR’s charter system and the financial landscape of the sport.
NASCAR counterclaims and answer
Greg is the author of "The Nuts and Bolts of NASCAR: The Definitive Viewers' Guide to Big-Time Stock Car Auto Racing" and has been published in major publications across the country including the Los Angeles Times, the Cleveland Plain Dealer and the Atlanta Journal-Constitution. He was also a contributor to Chicken Soup for the NASCAR Soul, published in 2010, and the Christmas edition in 2016. He wrote as the NASCAR, Formula 1, Auto Reviews and National Veterans Affairs Examiner for Examiner.com and has appeared on Fox News. He holds a BS degree in communications, a Masters degree in psychology and is currently a PhD candidate majoring in psychology. He is currently the weekend Motorsports Editor for Autoweek.
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