23XI Racing is in a tough spot after filing an antitrust lawsuit against NASCAR. Court proceedings will take over a year to complete and the officiating body has every right to revoke the team’s charters by that time. That is unless the team files an injunction that will allow them to compete as a chartered team until the end of the issue.
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All this chaos inexplicably spells difficulty for the team’s employees and causes concerns over their wages. However, Denny Hamlin has promised to bear the financial brunt along with his partner Michael Jordan for as long as things take. He said on Actions Detrimental, “As 23XI, we’re prepared for any outcome. I think Michael has stated and I’ve stated to the team.”
“We will not let this affect our employees whatsoever in any kind of way and any financial distress is going to have to fall directly on the owners. It will not fall on our people whatsoever. We will not allow that to happen.” The argument put forth by 23XI Racing is that NASCAR has become monopolistic and that the France family is taking advantage of that status.
True enough, there is no alternative to NASCAR in stock car racing. There is also the matter of revenue. 23XI Racing and Front Row Motorsports believe that teams should get more out of the TV deal considering how high the costs of operation are. This is amplified by the fact that nine out of the 15 teams that have competed in the sport since 2016 have gone defunct.
The relationship between NASCAR and 23XI Racing is at an all-time low. A failure to secure the injunction would result in the team’s charters being revoked and this would be catastrophic. Hamlin mentioned that it would cause “irreparable damage” to the ambitions and goals of the team.
23XI Racing attorney slams NASCAR’s “illegal” monopoly
Jeffrey Kessler is the attorney representing 23XI Racing and Front Row Motorsports in this battle against NASCAR. He was also their representative when the teams were going back and forth over the new charter deal these past two years. The veteran lawyer believes that NASCAR’s monopoly has gotten out of hand and is illegal.
Since there are no alternatives to NASCAR in stock car racing, the teams sometimes have no choice but to comply with whatever rules are imposed. Kessler explained to the media, “What we are arguing here is that NASCAR is a monopoly. No surprise to NASCAR fans. There is no alternative to NASCAR- not just in this country, but frankly around the world. And it’s gotten to monopoly illegally.”
“If it’s going to get resolved before [a trial], it’s going to have to be because there’s real, meaningful change that gives these teams a fair chance to compete and earn a profit and invest in the sport and grow it.” Operating a race team is a financial challenge, just as it is. To get into a fight with a shark such as NASCAR will only be more taxing. Hopefully, the employees of 23XI Racing won’t be affected by this brawl.
