NASCAR’s legal battle has escalated with serious allegations against Curtis Polk, an investor in 23XI Racing. This comes as NASCAR moves to dismiss an antitrust lawsuit filed in October by 23XI Racing and Front Row Motorsports. The lawsuit stems from dissatisfaction with NASCAR’s charter system and its revenue-sharing framework, sparking a significant dispute.
The controversy began when 23XI Racing and Front Row Motorsports rejected NASCAR’s final charter proposal, presented at Atlanta Motor Speedway in September. While the other 15 Cup Series teams accepted the deal, these two teams stood firm in their opposition, igniting tensions.
NASCAR has accused Polk of orchestrating boycotts and encouraging negative media campaigns to influence the sport’s governance and media rights negotiations. It also alleges that Polk coerced other team owners to resist NASCAR’s structure. NASCAR reporter Bob Pockrass highlighted the accusations on social media:
“NASCAR answer to lawsuit alleges 23XI co-owner Curtis Polk helped devise strategies [that] included ‘boycotts and potential boycotts of NASCAR events, negative media campaign to affect the media rights negotiations and threats/coercion to other team owners to ‘not break ranks.'”
Polk, a co-investor in the Michael Jordan and Denny Hamlin-led team, has been vocal about his dissatisfaction with NASCAR’s financial framework. The charter system, introduced in 2016, was meant to ensure teams’ stability and provide revenue-sharing guarantees. However, the recent proposal required teams to commit to future charters by September 6, a timeline that did not sit well with 23XI Racing and Front Row Motorsports. Their refusal to sign led to the filing of the antitrust lawsuit.
NASCAR has dismissed the claims as an attempt to mask business frustrations as legal grievances. In its response, NASCAR labeled the lawsuit as unfounded and inappropriate, stating:
“Plaintiffs’ Complaint is a misguided attempt to dress up private business frustrations in antitrust garb… Plaintiffs bring claims barred by the statute of limitations and laches; they fail to plead any reduction in competition, meaning they do not have the required antitrust injury to establish antitrust standing; and they aim to renegotiate contractual terms rather than address genuine anticompetitive behavior… claims should be dismissed.”
NASCAR has formally requested the court to dismiss the lawsuit, describing it as lacking legal merit. Meanwhile, 23XI Racing and Front Row Motorsports have until December 16 to respond to NASCAR’s filing.
