The NASCAR lawsuit involving 23XI Racing and Front Row Motorsports (FRM) centers on a contentious antitrust case filed by these two teams against NASCAR. The dispute revolves primarily around the status of their charters, which guarantee entry and certain financial rights within the NASCAR Cup Series. 23XI Racing, co-owned by NBA legend Michael Jordan and NASCAR veteran Denny Hamlin, together with Front Row Motorsports, have challenged NASCAR’s refusal to recognize and approve their purchased charters for the 2025 season.
Background and Origins of the Lawsuit
NASCAR charters are agreements that guarantee teams a slot in every Cup Series event, along with a share of revenue. In late 2024, 23XI Racing and FRM purchased additional charters from Stewart-Haas Racing but NASCAR declined to approve these transfers. NASCAR argued that the teams lost their rights by not signing charter extensions and that the sanctioning body is free to manage charters as it sees fit.
In response, 23XI and FRM filed an antitrust lawsuit claiming NASCAR engaged in monopolistic practices, violating federal antitrust laws by refusing approval of charter transfers and unfairly limiting competition. They sought a preliminary injunction requiring NASCAR to recognize their chartered status for 2025 to guarantee race participation and fair revenue sharing.
Key Legal Issues and Injunction
- Antitrust Violation Claims: The teams allege NASCAR’s actions suppress competition and revenue rights by arbitrarily refusing charter approvals.
- Preliminary Injunction: In December 2024, U.S. District Judge Kenneth Bell granted an injunction requiring NASCAR to approve the charter transfers and treat 23XI and FRM as chartered teams during the litigation.
- NASCAR’s Appeal: NASCAR appealed the injunction ruling, arguing the charter agreements include a release clause stripping teams of claim rights, and asserting the sanctioning body’s exclusive authority over charters.
- Fourth Circuit Ruling: In June 2025, the U.S. Court of Appeals vacated the injunction, siding with NASCAR that the district court abused discretion, but the main legal battle remains ongoing.
Legal Proceedings and Current Status
A second injunction request by the teams was filed in mid-2025, seeking to maintain charter status for the rest of the 2025 season. Hearings and motions continue, with a trial scheduled for December 1, 2025. While the teams currently compete under the original injunction order, NASCAR maintains they have legal grounds to manage charters without forced approval.
Both sides have subpoenaed evidence from other sports leagues and organizations, attempting to show industry norms on team rights and contracts. NASCAR alleges the teams have no credible proof of harm or collusion, while 23XI and FRM insist NASCAR’s conduct undermines competitive fairness.
Broader Implications and Impact on NASCAR
The lawsuit underscores broader tensions between NASCAR’s sanctioning authority and team owners’ ambitions to control assets and revenue streams. It raises fundamental questions about the balance of power within professional motorsports, the rights of team owners, and antitrust protections in sports governance.
The outcome could reshape how charters and team entries are managed, with long-term financial and competitive impacts on NASCAR’s Cup Series and potentially other racing series.
Frequently Asked Questions About NASCAR Lawsuit and 23XI Racing Injunction
What are NASCAR charters?
Charters guarantee teams entry into Cup Series races and a share of revenues, effectively acting as licenses tied to the team owners.
Why is 23XI Racing suing NASCAR?
Because NASCAR refused to approve charters 23XI and FRM purchased, limiting their guaranteed race participation and revenue, which they allege violates antitrust laws.
What does the injunction do?
It requires NASCAR to recognize 23XI and FRM as chartered teams for the 2025 season, despite NASCAR’s objections, pending the outcome of the lawsuit.
Has NASCAR appealed the injunction?
Yes, the Fourth Circuit Court of Appeals vacated the injunction in June 2025, but the trial and legal fight continue.
When is the trial?
The trial is scheduled for December 1, 2025.
Conclusion
The NASCAR lawsuit and injunction involving 23XI Racing epitomize complex legal disputes at the intersection of sports business, antitrust law, and team rights. While 23XI and Front Row Motorsports fight to secure charter recognition and equitable revenue, NASCAR defends its control over competition and governance.
As the case unfolds, its resolution will have significant ramifications for the structure of NASCAR racing, team ownership dynamics, and the economics of professional motorsports, influencing how sanctioning bodies balance corporate authority with team interests in the years to come.
