23XI Racing and Front Row Motorsports sue NASCAR

 

Credit: Christopher Hanewinckel
USA TODAY Sports

23XI Racing and Front Row Motorsports have joined forces to file an antitrust lawsuit against the sanctioning body of stock car racing in the US, citing that “NASCAR has unlawfully maintained its monopoly position for offering a top-tier stock car racing series in the United States in violation of the Sherman Antitrust Act.” 


23XI Racing and Front Row Motorsports issued a joint statement saying, “We share a passion for racing, the thrill of competition, and winning. Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and most importantly, fans.” 


NASCAR and its teams have previously been in charter negotiations for approximately two years over a revenue sharing model, but those negotiations came to a halt after 13 of the 15 organizations signed the deal. The lawsuit revealed that NASCAR delivered the final version of the charter agreement to the teams on September 6th, just two days before playoffs began, with an original deadline of an hour to sign the document. 


“Faced with a take-it-or-leave-it offer, and no competing opportunity for premier stock car racing in the United States, most of the teams concluded that they had to sign. One team described its signing as ‘coerced,’ and another said it was ‘under duress.’ A third team said, NASCAR ‘put a gun to our head[s]’ and we ‘had to sign.’ A fourth described NASCAR’s tactics as that of a ‘communist regime.’ None of these teams would permit their identities to be publicly revealed for fear of retribution from NASCAR.”


The two teams collectively seek a jury trial and have hired Jeffrey Kessler, who has represented players and teams alongside the creation of NFL free agency and the NCAA implementing pay for college athletes. His legal victories also include winning equal pay for the U.S. women’s national soccer team. 


Michael Jordan, co-owner of 23XI Racing, said in a statement: “Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track. I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”


Bob Jenkins, the co-owner of Front Row, said in his statement: “I have been part of this racing community for 20 years and couldn’t be more proud of the Front Row Motorsports team and our success. But the time has come for change.”


“We need a more competitive and fair system where teams, drivers, and sponsors can be rewarded for our collective investment by building long-term enterprise value, just like every other successful professional sports league.” 


NASCAR could not be reached for comment.  

23XI Racing and Front Row Motorsports sue NASCAR  23XI Racing and Front Row Motorsports sue NASCAR Reviewed by Courtney Horn on Wednesday, October 02, 2024 Rating: 5