NASCAR’s countersuit claims Michael Jordan’s 23XI Racing and Front Row Motorsports conspired to coerce the organization into meeting their demands, threatening the charter system.
The lawsuit, filed on Wednesday, comes after both teams refused to sign the latest charter agreements – akin to franchises in other sports – which were presented to all 15 teams with a tight deadline last September.
NASCAR’s countersuit alleges that 23XI Racing and Front Row violated antitrust laws and engaged in anti-competitive practices in connection with the 2025 Charter Agreements.
The charter system was established in 2016 to provide teams with guaranteed entry into races and a larger share of prize money. It has been a cornerstone of NASCAR’s business model, allowing teams to secure financial backing and plan for the future.
The charter system guarantees 36 out of 40 spots in each NASCAR Cup Series race and provides significant financial benefits to participating teams. However, negotiations for renewing these agreements have been contentious, with teams seeking more revenue and permanent charters.
23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins, have been vocal about their dissatisfaction with the terms of the charter agreements.
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They argue that NASCAR and the France family, which owns the stock car series, operate as a monopoly, stifling competition and limiting teams’ ability to negotiate better deals. This claim is central to their lawsuit, which alleges that NASCAR’s actions breach the Sherman Antitrust Act.
NASCAR’s countersuit targets violation of antitrust laws
The lawsuit specifically targets Curtis Polk, a long-time associate of Michael Jordan and a co-owner of 23XI Racing, accusing him of devising a plan to coerce NASCAR through media campaigns, interference with broadcast contract negotiations, threats to boycott events, and participation in a collective boycott of a NASCAR Team Owner Council meeting.
NASCAR describes these actions as part of an “unlawful cartel” aimed at undermining the organization’s authority and the charter system.
NASCAR’s countersuit attorney Christopher Yates said: “The undisputed reality is that it is 23XI Racing and Front Row, led by 23XI’s owner and sports agent Curtis Polk, that willfully violated the antitrust laws by orchestrating anticompetitive collective conduct in connection with the terms of the 2025 Charter Agreements.”
“It is truly ironic that in trying to blow-up the Charter system, 23XI and FRM have sought to weaponize the antitrust laws to achieve their goals…attempting to misuse the legal system as a last resort to secure new terms.”
The dispute began when NASCAR presented its final offer for charter agreements, which all the 15 teams accepted except 23XI Racing and Front Row.
Despite their refusal to sign, both teams were granted preliminary injunctions by a federal court, allowing them to compete as chartered teams for the 2025 season while their lawsuit progresses.
This ruling was seen as a significant setback for NASCAR which has since appealed the decision, arguing that the injunctions violate federal antitrust laws and misinterpret established guidelines for preliminary injunctions.
NASCAR’s countersuit maintains that the teams’ dissatisfaction with the contractual terms does not constitute a valid antitrust case.
The organization believes that the charter system is essential for ensuring stability and financial security for teams, and that the refusal of 23XI Racing and Front Row to sign the agreements was an attempt to exploit antitrust laws for their own benefit.
A troubled end to the charter system?
NASCAR’s countersuit intends to vigorously defend against the antitrust allegations while suggesting that if the teams succeed in dismantling the charter system, NASCAR might abolish it entirely rather than renegotiate new charters.
“There’s a misperception out there that somehow 23XI Racing and Front Row might achieve something that other teams can take advantage of, and that’s just not right,” Yates added.
“This is not going to be a renegotiation. NASCAR has no intent of renegotiating the terms of the charter. Front Row and 23XI are threatening the charter system and its continuation, and NASCAR is fine without the charter system.
“The charter system was created at the request of the teams. That was before 23XI and Curtis Polk’s time, I don’t think they understand that history. But if they succeed with their lawsuit and the charter system goes away, that’s OK.”
NASCAR’s appeal against the preliminary injunctions is set to be heard in May, with a potential ruling in June. The outcome of this appeal will be crucial in determining the trajectory of the legal dispute and the future of the charter system.
Amid NASCAR’s countersuit, both 23XI Racing and Front Row will continue to actively compete in the NASCAR Cup Series for the 2025 season.
