NASCAR and its charter system have been at the center of controversy for over a year now. But things took a sharp turn on Wednesday when the sanctioning body went on the offensive. This move comes after both 23XI Racing and Front Row Motorsports secured an injunction to compete in the 2025 NASCAR Series. But, this wasn’t going to be the end of it as the sanctioning body was working on their counter to tackle this initial loss.  The organization has now come out and accused the two teams of orchestrating “anticompetitive collective conduct” and violating antitrust laws.

Notably, the conflict began in 2024 when NASCAR presented a take-it-or-leave-it deal to the teams, offering new financial terms for chartered entries. While 13 teams signed the agreement, 23XI and FRM stood firm, arguing that the deal was unfair and labeling NASCAR as a monopolistic bully. They filed a lawsuit against NASCAR in October, accusing the organization of using its power to control the sport’s revenue and structure.

This legal war has divided the NASCAR world. While some believe 23XI and FRM are fighting for fairness, others see their actions as a power play for a better financial payout. But Jordan’s team didn’t hold back against the sanctioning body’s bold claims and were quick to shut it down.

23XI hits back with a strong rebuttal against NASCAR!

On Wednesday, March 5, NASCAR filed a counter-lawsuit against 23XI Racing and Front Row Motorsports. The lawsuit alleged that the teams used coercion, threats, and media pressure to force NASCAR into accepting their demands. In its filing, NASCAR specifically called out Curtis Polk, Michael Jordan’s longtime business partner and a co-owner of 23XI Racing. The organization alleged that Polk led the charge in coordinating a collective effort among Cup Series teams to demand more financial benefits from NASCAR.

However, 23XI Racing hit back at NASCAR and called their latest move nothing more than a “meritless distraction.” 23XI Racing’s attorney, Jeffrey Kessler, dismissed NASCAR’s counterclaim in an official statement. “Today’s counterclaim by NASCAR is a meritless distraction and a desperate attempt to shift attention away from its own unlawful, monopolistic actions. NASCAR agreed to the joint negotiations that they now attack,” Kessler claimed.

He further accused NASCAR of forcing their Charter rules, claiming NASCAR needs to undergo a transition. “Every major sport goes through a transition to competition when antitrust claims are asserted, and that moment has come for NASCAR. Today’s baseless filing changes nothing. We are confident in the strength of our case and look forward to presenting it at trial,” Kessler further added.

Notably, in its filing, NASCAR specifically called out 23XI Racing team owners and their partners. The lawsuit painted 23XI and FRM as aggressors, using legal action to manipulate the system for their benefit. NASCAR’s lawyers claimed, “Polk and 23XI’s other owners openly advocated for changes to NASCAR’s economic structure, pushing for greater financial support from NASCAR’s media revenues rather than relying on competition for sponsorship dollars.”

It’s worth noting that Polk is no stranger to high-stakes negotiations. He has been Michael Jordan’s business advisor for decades, helping the NBA legend build a multi-billion-dollar empire. He played a key role in finalizing the deal between Denny Hamlin and Michael Jordan for 23XI Racing. However, now, NASCAR has painted him as the biggest villain in all this charter fiasco.

With such a firm response, Denny Hamlin and the Jordan-led squad have clarified that they are in no mood to back off. What happens next? After all, there was a specific timeline that the two parties had in place to make their arguments in court.

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What’s Next? The Legal Battle Timeline

In late December 2024, a US district court judge set a timeline for the lawsuit. The hearing for NASCAR’s motion to dismiss was scheduled for January 8, 2025. Notably, the court had rejected NASCAR’s application to dismiss the preliminary Injunction. As the case moves forward, both sides will enter the discovery phase, where they gather evidence and build their arguments. This process is expected to last most of the year, with a deadline set for September 19, 2025.

If no settlement is reached, the trial is set to begin on December 1, 2025—more than a year after 23XI and Front Row Motorsports first filed their lawsuit. Throughout this period, NASCAR is expected to push hard to dismiss the case, while 23XI and FRM will fight to keep it alive. The latest lawsuit is part of that effort. However, it seems difficult that the court will dismiss the petition filed by 23XI Racing and FRM.

As the legal fight drags on, the sport faces an uncertain future. If 23XI and FRM win, it could lead to major changes in how NASCAR teams operate and negotiate with the governing body. This could mean power sharing and a say in the decision-making process. On the flip side, if NASCAR prevails, it will reinforce the organization’s control over team finances and sponsorships. And who knows they might do away with the charter system as well.