A federal judge has scheduled a hearing for January 8, 2025, to address NASCAR’s motion to dismiss an antitrust lawsuit filed by two prominent teams, 23XI Racing and Front Row Motorsports. The legal dispute centers on the charter system and alleged monopolistic practices in the sport.
Antitrust Lawsuit by 23XI Racing and Front Row Motorsports
The lawsuit was initiated by 23XI Racing, co-owned by NBA legend Michael Jordan and NASCAR driver Denny Hamlin, along with Front Row Motorsports. Both teams claim NASCAR has acted as “monopolistic bullies” by limiting revenue-sharing opportunities and enforcing restrictive charter agreements.
A charter functions as a franchise, ensuring teams a spot on the field, prize money, and other competitive protections. The dispute escalated last September when both teams refused to accept revenue-sharing deals proposed by NASCAR just two days before the playoffs began.
Preliminary Injunction Secures Teams’ Status for 2025
In a preliminary ruling this week, U.S. District Court Judge Kenneth D. Bell granted 23XI Racing and Front Row Motorsports the ability to compete as chartered teams in 2025.
Judge Bell emphasized the public’s interest in the lawsuit, stating, “NASCAR fans (and members of the public who may become fans) have an interest in watching all the teams compete with their best drivers and most competitive teams.”
This ruling allows the teams to sign charter agreements while continuing their antitrust litigation.
Discovery and Trial Timeline Set
Judge Bell also outlined the timeline for the case, setting a discovery deadline of September 19, 2025, and a trial date for December 1, 2025.
In the meantime, both teams received approval to purchase additional charters from Stewart-Haas Racing, which closed its four-team operation at the end of the 2024 season. NASCAR must authorize the transfers, which could impact the lawsuit’s broader implications.
NASCAR’s Response to the Legal Battle
NASCAR has not publicly commented on the January hearing but continues to defend its charter system and operational practices. The organization argues that its current model ensures stability and competitiveness within the sport.
