Antitrust Suit Filed by NASCAR Cup Series Teams

Background

To increase revenue and influence, 23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR and Chairman Jim France.

Suit filed Oct. 2 in federal court in Charlotte.

Recent Developments

Jan. 10 update:

NASCAR's motion to dismiss the case was denied.

Judge Kenneth Bell declined to require teams to post a bond for any earnings.

Jury trial set for Dec. 1.

Jan. 8 update:

Hearing held on NASCAR's motion to dismiss.

Judge Bell did not rule, but indicated the case will likely proceed.

Dec. 23, 2024 update

NASCAR must approve transfer of one SHR charter to Front Row Motorsports (FRM), but 23XI must request a separate court order for their transfer.

Dec. 18, 2024 update

Temporary injunction granted, allowing 23XI and FRM to sign 2025 charter agreements and transfer SHR charters.

Dec 12, 2024 update

Case reassigned to Judge Kenneth Bell.

Dec 2, 2024 update

NASCAR files motion to dismiss and general answer.

NASCAR argues charter agreement was fair and teams have already benefited from the system.

Nov. 26, 2024 update

Teams file new motion for injunction, citing new circumstances.

Nov. 20, 2024 update

Teams drop their appeal of the denied injunction motion.

Nov. 16, 2024 update

Teams will field open cars while pursuing the lawsuit.

Nov. 8, 2024 update

Injunction motion denied.

Teams granted expedited discovery.

Nov. 4, 2024 update

Injunction hearing set for Nov. 8.

Teams argue drivers and sponsors could leave without an injunction.

Oct. 31, 2024 update

Teams argue they would need an injunction even to race as open teams.

Oct. 30, 2024 update

NASCAR claims the case is primarily a contract dispute and that the teams' motion does not meet the criteria for a preliminary injunction.

Oct. 23, 2024 update

Teams file a preliminary injunction motion asking to race as chartered teams while the lawsuit proceeds.

Oct. 9, 2024 update

23XI Racing and FRM file the original lawsuit.

Parties Involved

Teams: 23XI Racing, Front Row Motorsports

Sanctioning Body: NASCAR

Chairman: Jim France

Basis of the Suit

Teams allege NASCAR violates antitrust law by controlling the market for premier stock-car racing teams.

NASCAR argues it has increased revenue for teams with the 2025 charter agreement.

Potential Outcomes

Settlement of the case at any time.

Discovery that could reveal egregious acts discouraging competition.

Changes to charter agreements or NASCAR governance.