CHARLOTTE, N.C. – Two NASCAR teams have taken a significant step in challenging the stock car series and its chairman, Jim France, by filing a federal antitrust lawsuit. The lawsuit, filed by 23XI Racing and Front Row Motorsports, asserts that the new charter system implemented by NASCAR restricts competition by unfairly binding teams to the series, its tracks, and its suppliers.
After two years of contentious negotiations, the privately owned National Association for Stock Car Auto Racing and the 15 charter-holding organizations in the Cup Series found themselves at odds. According to the lawsuit, the France family and NASCAR are accused of being monopolistic bullies by the teams involved, who believe that the current system is detrimental to teams, drivers, sponsors, and fans.
The charter system, introduced in 2016, guarantees 36 entries in every Cup Series race while incorporating revenue sharing and other business elements. Despite the initial rollout, the lawsuit alleges that the charters have left teams without a clear path to profitability, leading to departures like Furniture Row Motorsports selling its charter for $6 million after winning the Cup Series championship in 2017.
23XI Racing, a team co-owned by Michael Jordan and Denny Hamlin, along with Front Row Motorsports, have taken a stand by refusing to sign the latest proposal presented by NASCAR in early September. The teams believe that a fairer competitive landscape is necessary, where teams, drivers, and sponsors can benefit from their investments.
The lawsuit seeks to obtain details from NASCAR and France regarding their exclusionary practices and intentions. Furthermore, the teams involved are seeking treble damages for what they perceive to be anti-competitive terms that have prevailed in the sport. With the guidance of top antitrust attorney Jeffrey Kessler, known for his work in major professional sports, the teams aim to level the playing field and ensure a competitive market where everyone can thrive.
The lawsuit alleges that NASCAR’s tactics have coerced teams into accepting terms that are detrimental to their interests, preventing any stock car racing team from competing without adhering to these terms. As the legal battle unfolds, it is expected that more insights will come to light regarding the intricacies of the charter system and its impact on the sport as a whole.