Michael Jordan and Curtis Polk, co-owners of 23XI Racing, watch a NASCAR Cup Series race on November 9, 2024, alongside 23XI Racing president Steve Lauletta. (AP Photo/John Locher)
CHARLOTTE, N.C. — Front Row Motorsports, one of two teams suing NASCAR in federal court, alleged on Thursday that NASCAR blocked its purchase of a valuable charter unless the team dropped its lawsuit against the series.
The claim was made in a court filing regarding Front Row’s attempt to purchase a charter from Stewart-Haas Racing (SHR). According to Front Row general manager Jerry Freeze, NASCAR explicitly stated it would only approve the transfer if Front Row and 23XI Racing withdrew their antitrust lawsuit.
“NASCAR informed us they would not approve the charter transfer unless we agreed to drop the ongoing lawsuit,” Freeze said in an affidavit filed in the U.S. District Court for Western North Carolina.
The dispute began in September when Front Row and 23XI Racing refused to sign NASCAR’s final revenue-sharing agreement, which the other 13 teams accepted. Michael Jordan, co-owner of 23XI Racing, stated that the lawsuit was filed to advocate for all NASCAR teams. NASCAR, however, has argued that the lawsuit stems from the teams’ dissatisfaction with the final charter agreement and has requested its dismissal.
Earlier this week, the case was reassigned to a new judge after the initial judge denied the teams’ request for a temporary injunction to secure charter status for 2025 while the lawsuit progresses.
In the latest court filings, which include heavy redactions, Front Row and 23XI Racing outlined alleged retaliatory actions by NASCAR, which they claim have caused significant harm. Both teams aim to expand from two to three full-time cars in 2025 and had agreements with SHR to purchase charters. However, NASCAR’s rejection of these deals jeopardizes their plans. Without charters, the teams would compete as “open” entries, which lack the financial benefits and protections charters provide.
Freeze revealed in his affidavit that Front Row had signed a purchase agreement with SHR in April. NASCAR President Steve Phelps had reportedly approved the deal in September. However, when Front Row submitted the necessary paperwork in November, NASCAR requested additional information, much of it related to the ongoing lawsuit, according to Freeze.
On December 5, NASCAR formally objected to the charter transfer, reversing its earlier approval. Freeze claims NASCAR made it clear that the transfer would only proceed if the lawsuit was dropped.
Steve Lauletta, president of 23XI Racing, also submitted an affidavit refuting NASCAR’s claims that the two teams were engaging in a “coordinated effort” to manipulate the case. “This accusation is entirely false,” Lauletta stated.
Front Row, owned by businessman Bob Jenkins, and 23XI Racing, co-owned by NBA legend Michael Jordan, NASCAR driver Denny Hamlin, and Jordan’s longtime advisor Curtis Polk, argue that losing charter status would breach their existing agreements with sponsors and drivers, resulting in significant financial losses.
Since 2016, NASCAR has operated with 36 chartered teams and four open spots. For 2025, NASCAR plans to reduce the number of charters to 32, creating eight open positions. The charters Front Row and 23XI Racing planned to purchase from SHR are now in limbo.
Lauletta emphasized the importance of charter status for the team’s growth and competitiveness. “23XI exists to compete at the highest level of stock car racing and to pursue excellence and championships within the only available system — NASCAR,” he said. “Our efforts to expand are essential to achieving that goal. It’s not contradictory to strive for success within the system while also working to improve it.”
