Wednesday saw Michael Jordan and Denny Hamlin’s 23XI Racing team alongside Bob Jenkins’ Front Row Motorsports lodge a lawsuit against NASCAR and the France family, accusing it of monopolistic and anti-competitive practices.
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The complaint alleges that NASCAR conducts its operations in a manner that disproportionately benefits the France family, to the detriment of teams, owners, drivers, and subsequently sponsors and fans.
Jeffrey Kessler, the attorney who previously represented NASCAR teams during charter agreement negotiations and is behind the legal action, clarified their position and spoke to Dirty Mo Media.
He explained, “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.”
23XI and FRM's lawyer, Jeffrey Kessler, breaks down – in simple terms – the grounds for their antitrust lawsuit. 💼 pic.twitter.com/p5bK7VlTog
— Dirty Mo Media (@DirtyMoMedia) October 2, 2024
He argued that NASCAR’s monopoly extends to its control over several racetracks in the country, preventing teams from competing on any other circuits. Furthermore, NASCAR seizes the intellectual property rights related to the Next Gen cars, locking teams into its ecosystem and compromising their competitive position.
The lawsuit was filed after two years of strained negotiations between NASCAR and the Cup Series teams regarding the renewal of the charter agreement established in 2016.
Kessler also pointed out the financial strain under this system, noting that since the charter’s inception, out of 15 teams that competed in 2016, nine ceased operations because they could not sustain the financial burden of surviving in the sport.
Stressing over what they aim to achieve with the lawsuit, Kessler said in his statement, “We can’t give you a specific, ‘This will do it.’ There must be significant change. No one is bringing this type of fight, this type of lawsuit, to move from a (Grade) D-plus deal to a D deal.”
“That is not going to happen. 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,” he added.
Will 23XI and FRM continue to race next season?
According to The Athletic, the teams are currently seeking a preliminary injunction from the court. It would permit them to race and maintain their operations under the existing charter agreement while the lawsuit proceeds. Ideally, the court might grant this injunction by the year’s end, just before the current charter agreement expires.
However, Kessler indicated that reaching a settlement could take some time — potentially up to a year and a half. The injunction would allow the teams to compete under their existing charters without facing any penalties as the legal battle unfolds.
While teams like 23XI Racing and Front Row Motorsports (FRM) are openly challenging NASCAR’s status quo, there is murmuring among many teams that they felt compelled to sign the existing deal under pressure. According to the law, even though these teams have already signed the charter agreement, they could argue that they did so under duress and seek to join the lawsuit.
