NASCAR has recently put a freeze on 23XI Racing’s plan to purchase a third charter from Stewart-Haas Racing (SHR) amid an ongoing antitrust lawsuit. The lawsuit, filed on October 2 by 23XI Racing, owned by Michael Jordan and Denny Hamlin, accuses NASCAR of monopolistic practices. Along with Front Row Motorsports, the teams allege that NASCAR, led by CEO Jim France, is using unfair tactics to stifle competition within the sport.
At the heart of this legal battle is the issue of charter negotiations. 23XI Racing and Front Row Motorsports argue that NASCAR handled these negotiations unfairly. Both teams had reportedly reached agreements to purchase charters before NASCAR finalized its new charter deal.
According to the lawsuit, 23XI Racing had entered into an agreement with SHR to buy its last remaining charter on August 7, 2024. However, the deal is currently on pause as it requires NASCAR’s approval before it can be officially completed. Until that happens, the purchase remains in escrow.
The legal document states, “23XI is in the process of acquiring a third charter. 23XI and Stewart-Haas Racing, LLC entered into a purchase agreement on Aug. 7, 2024, but the transaction is still in escrow and requires NASCAR’s approval. Meanwhile, Stewart-Haas Racing, LLC signed NASCAR’s 2025 Charter Agreement.”
The backstory involves SHR’s announcement in May of this year, where the team revealed plans to close down and sell three of its four charters. Front Row Motorsports and Trackhouse Racing had successfully purchased two of these charters, while 23XI Racing was expected to secure the third. There were even rumors that driver Riley Herbst would take the wheel for 23XI’s third car.
However, the entire deal hit a roadblock when 23XI Racing refused to sign NASCAR’s new charter agreement by the deadline of September 9. This disagreement ultimately led to the current lawsuit, which accuses NASCAR of anti-competitive behavior and monopolistic control over the sport.
In their lawsuit, both 23XI Racing and Front Row Motorsports assert that NASCAR’s control over the sport has limited competition. They argue that the league’s practices prevent other teams from having a fair shot at success. The teams issued a joint statement, stressing the need for more transparency and fairness in NASCAR’s operations. According to the statement, the legal action was a last resort after more than two years of unsuccessful attempts to negotiate with NASCAR over the 2025 agreements.
“After more than two years of attempted negotiations over the 2025 agreements, during which NASCAR continually stonewalled and refused to engage constructively, we concluded that litigation was the only way to address the anti-competitive practices of NASCAR and the France family,” the statement reads.
The teams have listed several grievances against NASCAR. These include the league’s purchase of most major racetracks, the enforcement of exclusive agreements, and its acquisition of the Automobile Racing Club of America (ARCA). Moreover, NASCAR has been accused of blocking teams from participating in other racing events and forcing them to buy parts exclusively from NASCAR-approved suppliers.
The antitrust lawsuit represents a significant moment of tension between NASCAR and some of its prominent teams. 23XI Racing, with the star power of Michael Jordan and the racing expertise of Denny Hamlin, has quickly become a key player in the sport. Their legal move, alongside Front Row Motorsports, is a clear sign of their frustration with the current structure of NASCAR’s operations.
The outcome of this legal battle could have far-reaching implications for the future of the sport. If 23XI Racing and Front Row Motorsports are successful in their claims, it could lead to substantial changes in how NASCAR operates, potentially giving more power and flexibility to individual teams. On the other hand, NASCAR’s ability to maintain control over key aspects of the sport, including charter agreements, could solidify its position at the top of the motorsport world, despite the criticism it faces.
For now, 23XI Racing’s third charter deal remains in limbo, with the future of the team’s expansion efforts hanging on the outcome of this ongoing legal dispute. Fans and industry insiders alike are closely watching how this situation unfolds, as it could reshape NASCAR’s competitive landscape for years to come.
“NASCAR Puts 23XI Racing’s Third Charter Deal with SHR on Hold for Serious Reasons”
