Key Takeaways
- 23XI Racing and Front Row Motorsports allegedly filed a lawsuit against the sanctioning body NASCAR and its CEO, Jim France.
- A true partnership, not dictatorship, is our goal, says Curtis Polk, co-owner of 23XI Racing.
Stock car teams 23XI Racing and Front Row Motorsports allegedly filed a lawsuit against NASCAR’s sanctioning body and CEO, Jim France, in the Western District of North Carolina.
23XI Racing was founded in 2020 by NBA Legend Michael Jordan and three-time Daytona 500 Winner Denny Hamlin.
Front Row Motorsports is a winning organization in the NASCAR Cup and CRAFTSMAN Truck Series.
It alleges,
“NASCAR and the France family operate without transparency, have stifled competition, and control the sport of stock car racing in ways that unfairly benefit them at the expense of team owners, drivers, sponsors, partners, and fans, through the following anti-competitive practices.”
- Buying a majority of the premier racetracks that are exclusive to NASCAR races;
- Imposing exclusivity deals on NASCAR-sanctioned racetracks;
- Acquiring Automobile Racing Club of America (ARCA), the only notable stock car racing series competitor;
- Preventing teams from participating in any other stock car races while also retaining ownership over Next Gen parts and cars and
- Forcing teams to buy their parts from single-source suppliers chosen by NASCAR.”
Michael Jordan, co-owner of 23XI Racing, also issued a statement,
“Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”
Statement from 23XI and Front Row Motorsports ownership. Read more here https://t.co/zvseR0i7bP pic.twitter.com/2HGtyawX6k
— 23XI Racing (@23XIRacing) October 2, 2024
“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.”
Via 23xiracing.com
– 23XI Racing and Front Row Motorsports said in a joint statement
Antitrust and sports lawyer Jeffrey Kessler, was hired by the race teams at the beginning of the year to advise them on their negotiation with the NASCAR.
Kessler says,
“This is reminiscent for me of many sports that have gone through a transformative model, (It’s) sort of a moment when the legal style basically confronts them and says, either you’re going to voluntarily change or you’re going to be changed and you can either get on the bus or get run over by the bus. No one wanted this litigation but NASCAR didn’t really give these teams any choice — you either submit to the bully or you fight. They’re going to fight.”
Jeffrey Kessler in regards to the 23XI Racing/Front Row lawsuit to #NASCAR: "There has never been a case that I have found that is as egregiously anti-competitive as this one." pic.twitter.com/GJoN3rt64T
— Toby Christie (@Toby_Christie) October 2, 2024
“We think at the end of the day, NASCAR’s going to have to change because that’s what the legal system is going to require. If NASCAR is willing to change, it’s got to be a significant change to make a fair system for the teams, If they’re not willing to do that kind of a deal, then they’ll take this case all the way to a jury and a judge, and that’s why I say they’ll be forced to change. It’s the same type of thing I went through with the NCAA, who had a choice to make. They could keep fighting in court and keep losing and have the new system thrust upon them or in that case, they finally sat down and said, we’re ready to transform the sport and we’ll be a part of it. That’s the type of choice that NASCAR is going to face.“
Two years of tense negotiation between NASCAR and the Race teams over the 2025 Charter Agreement have now culminated in a Lawsuit.
The Lawsuit reads,
“Founded in 1948, NASCAR’s business model has been based on the principle of independent stock car racing teams investing their own money and time for the opportunity to compete in premier stock car events at tracks largely owned by NASCAR’s ruling family, the Frances,“Whatever teams put in, NASCAR argued, would be rewarded with the glory of race wins and championships. However, even some of the most successful racing teams in NASCAR history have left the sport with little to show for it, at least not in their wallets, while the France family profited handsomely.”
Bob Jenkins, owner of Front Row Motorsports, also recollects that he has never made a profit since joining NASCAR in 2005.
NASCAR made a final offer on September 6, with a deadline for the teams to sign. Out of the 15 teams, 23XI Racing and Front Row Motorsports are the only ones left to sign.
According to Bob Jenkins, the teams received an email at 5 pm with a one-hour limit to review a 112-page document with the condition of signing or their charter could be pulled out.
“NASCAR set out on this journey to basically divide and conquer, and they were largely successful, I hate to say that but they were largely successful. Dusted off the 50-year-old playbook and said, ‘I’ll be dang, this thing still works, we can still intimidate the teams into signing a deal.’ September 6, that’s exactly what happened.” -Bob Jenkins, owner of the Front Row Motorsports
Via Racer.com
According to CNN Sports,
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.”
Curtis Polk, co-owner of 23XI Racing, adds,
“A true partnership, not dictatorship, is our goal. For over two years, I have dedicated myself to championing a more fair and transparent system within NASCAR, where we recognize the importance of the France family and the sanctioning body, but do what is best for all stakeholders. The charter that was forced on the teams with only hours’ notice does not accomplish these objectives. The new charter is an attempt to further marginalize the teams’ voices in the sport and consolidate control and the power in the hands of the France family for their sole benefit. I hope our actions today lead to a future of collaboration for this great sport we love.”
So, what is your opinion about the lawsuit?
In Case You Didn’t Know
- In 2023, Jordan sold his ownership stake in the NBA’s Charlotte Hornets franchise and has invested in different sectors, including multiple investments in NASCAR.
- Jeffery Kessler is a top anti-trust attorney representing players in all four major professional North American Sports.
- The Lawsuit questions NASCAR and France about their exclusionary practices and intent to insulate themselves from competition.