By Thomas Nash, Tulane Sports Law
In October of 2024, 23XI Racing (owned by NBA legend Michael Jordan) and Front Row Motorsports filed an antitrust suit against NASCAR. The complaint alleged that NASCAR issued an ultimatum, forcing teams into an unfair charter system that was not transparent and was unjustly benefiting NASCAR. These are the only two organizations who held out from renewing the new charter agreement after lengthy negotiations to come to terms. Without the franchise agreement, under the current system, both racing companies say they will be out of business. NASCAR contends that the companies have alternative leagues in which they can compete, such as IndyCar and F1. In the meantime, the companies have raced in the “open” category as an interim measure.
With trial set for December 1, 2025, the parties held a mediation in October 2025 that was ultimately unsuccessful. Shortly thereafter, the court held a hearing on the racing teams’ motion for summary judgment on NASCAR’s counterclaims, which alleged the racing teams’ themselves violated antitrust law by colluding with other team owners to boycott a team owners meeting while re-negotiating new charters. On October 28, 2025 the court granted the teams’ motion, dismissing NASCAR’s counterclaim upon finding that the boycott ultimately did not violate the law because NASCAR was able to individually re-negotiate with each team.
Following the hearing, counsel for the teams’, Jeffrey Kessler of Winston & Strawn, stated, “today’s decision has only reaffirmed my clients’ unwavering pursuit of a more fair and equitable sport.” NASCAR also provided a statement: “Our priority remains resolving this matter quickly so all parties can focus on Championship weekend and continuing to grow the sport.” Two more motions for summary judgment remain pending. NASCAR is represented by Chris Yates of Latham & Watkins LLP in San Francisco.
