23XI Racing & Front Row Motorsports vs. NASCAR antitrust lawsuit

23XI Racing co-owner Michael Jordan

23XI Racing co-owner Denny Hamlin

The antitrust lawsuit between 23XI Racing and Front Row Motorsports against NASCAR, formally known as 2311 Racing LLC d/b/a 23XI Racing and Front Row Motorsports, Inc. v. National Association for Stock Car Auto Racing, LLC, et al., is a currently ongoing legal dispute between the sanctioning body and the two NASCAR Cup Series teams that refused to sign NASCAR's new charter agreement that began in the 2025 NASCAR Cup Series season. The trial will be held on December 1, 2025. The teams also are seeking a change in NASCAR's business practices, claiming they are monopolistic. Another separate but key part of the two teams' legal battle with NASCAR has been over an injunction request for them to compete as chartered entries during the 2025 season before the December trial is held. Kenneth D. Bell, a judge of the United States District Court for the Western District of North Carolina (the state where the NASCAR industry is based), has heard many of the arguments in the case.

Background/beginnings

NASCAR Chairman and CEO Jim France

Negotiations for NASCAR's new charter agreement to begin at the start of the 2025 season started in 2022. After two years of negotiations, NASCAR issued a "take it or leave it" offer for the teams, represented by the Race Team Alliance, to sign by September 6, two days before the first race of the 2024 playoffs at Atlanta Motor Speedway. ^[1] Teams felt "threatened and coerced" to sign the new agreement by the deadline, according to people who spoke on the condition of anonymity to The Associated Press . One of the biggest reasons the teams did not sign on to the new agreement was because charters would not be made permanent. NASCAR Chairman and CEO Jim France was especially against the charter system being made permanent. ^[2]

Timeline

United States district court judge Kenneth Bell, who has presided over many arguments of the case

^[3]

On October 2, 2024, it was announced that 23XI Racing, along with Front Row Motorsports, filed an antitrust lawsuit against NASCAR over the terms of the updated charter agreement, as well as anti-competitive practices committed by the France family. 23XI and Front Row would get renowned sports attorney Jeffrey L. Kessler to represent them in the case. ^{[4] [5]}

On December 18, both teams were granted a motion of preliminary injunction, allowing them to race as chartered entries in 2025 while continuing their legal battle with NASCAR. The injunction also allowed the transfer of two Stewart–Haas Racing charters to both teams (23XI and Front Row each purchased 1 charter from SHR after the team closed down). ^[6]

However, on June 5, 2025, the U.S. Court of Appeals for the 4th Circuit overturned the preliminary injunction ruling. ^[7] After the teams' request for a rehearing on the injunction was denied, 23XI and Front Row had to begin competing as open teams starting at the race at Dover Motor Speedway in July. As a result, the six cars from the two teams, the No. 4 of Noah Gragson, No. 23 of Bubba Wallace, No. 34 of Todd Gilliland, No. 35 of Riley Herbst, No. 38 of Zane Smith and No. 45 of Tyler Reddick, would not have guaranteed entry in any remaining races if over 40 cars would attempt to qualify for a race and would also receive significantly less purse money in each race. ^[8]

On August 25, NASCAR filed a legal notice of its agreement to issue one of the charters to a redacted entity. Also at that time, 23XI driver Tyler Reddick gave the team breach of contract notice as a result of the lawsuit. ^[9] On August 28, another hearing for an injunction to have both teams gain their chartered status back for the remainder of the 2025 season was held, and it included the revealing of text messages from NASCAR executives as well as 23XI team executives had against the other side. After the hearing, Kessler and 23XI owners Michael Jordan and Denny Hamlin spoke with the media. Jordan stated that "If I have to fight this to the end for the betterment of the sport, I will do it." ^[10]

References

1. Fryer, Jenna (September 9, 2024). "NASCAR has finalized a new charter agreement. Team co-owner Michael Jordan won't sign it". Associated Press . Retrieved August 30, 2025.
2. Fryer, Jenna (September 7, 2024). "Michael Jordan's NASCAR team skips the deadline to sign a new revenue model with racing series". Associated Press . Retrieved August 30, 2025.
3. Bob Pockrass (August 28, 2025). "What To Know About NASCAR Antitrust Lawsuit: Michael Jordan Ready 'To Fight To The End'". Fox Sports . Retrieved August 30, 2025.
4. "23XI Racing, Front Row Motorsports sue NASCAR alleging monopolistic practices". The New York Times . October 2, 2024. Retrieved August 30, 2025.
5. "23XI Racing, Front Row Motorsports file lawsuit against NASCAR UPDATE 3". Jayski's Silly Season Site . NASCAR Digital Media. October 3, 2024. Retrieved August 30, 2025.
6. "Teams win preliminary injunction in lawsuit against NASCAR". Jayski's Silly Season Site . NASCAR Digital Media, LLC. December 18, 2024. Retrieved August 30, 2025.
7. "U.S. Court of Appeals rules in favor of NASCAR". Jayski's Silly Season Site . NASCAR Digital Media. June 5, 2025. Retrieved August 30, 2025.
8. DeGroot, Nick (July 17, 2025). "23XI and FRM lose NASCAR charters after court ruling, will run as open teams". Motorsport.com . Retrieved August 30, 2025.
9. "NASCAR has agreement for transfer of charter involved in lawsuit". Jayski's Silly Season Site . NASCAR Digital Media. August 25, 2025. Retrieved August 30, 2025.
10. Christie, Toby (August 28, 2025). "NASCAR, 23XI/Front Row Spar in Ugly Thursday Injunction Hearing". TobyChristie.com. Retrieved August 30, 2025.