23XI Racing and Front Row Motorsports drew a line when the new charter deal was announced. They were the only two teams who didn’t agree to the new terms and have since filed a lawsuit challenging NASCAR’s monopoly. The lawsuit alleges that NASCAR operates as a monopoly and that its body enriches itself at the expense of the racing teams. A high-profile lawyer will pursue this case for 23XI and FRM, but NASCAR has now come up with a legal representation of its own in the case.

The NASCAR teams wanted a bigger share of the revenue, a say on the governing matters, permanent charters, and a piece of what business deals NASCAR makes using driver or team likeliness. However, out of these conditions, only an increased share was offered with the new charter deal being signed for a period of seven years with a seven-year option. 13 teams signed the deal before the deadline, with many team owners saying it was presented as a “take it or leave it final offer,” with a September 6 deadline looming.

But Michael Jordan and Denny Hamlin were joined by Bob Jenkins in taking NASCAR to court over their dealings. They hired Jeffrey Kessler, the Co-Executive Chairman of the well-known Winston & Strawn. Kessler won a landmark equal pay settlement for members of the U.S. women’s national soccer team. He also comes with a resume boasting success in cases like NFL Free Agency and Salary Cap (1992), NBA Salary Cap (1995), and International Sports Antitrust (Formula 1).

Kesler was also responsible for victory in the antitrust lawsuit against the NCAA’s anticompetitive compensation restrictions. Now, however, NASCAR has begun its legal defense by hiring renowned attorney Chris Yates to represent it. Bob Pockrass was the first one to update the NASCAR world about the news. Pockrass took to X on October 8 and wrote, “According to court filings in the 23XI/FRM case, NASCAR will be represented by Chris Yates, a noted attorney whose client list includes the U.S. Soccer Federation, the UFC, World Aquatics, Fanatics, the Atlantic Coast Conference, and the Hollywood Foreign Press Association.”

While Kessler comes with an antitrust and sports law background, Chris Yates is no ordinary partner at Latham & Watkins LLP””his resume speaks volumes. Once the Global Co-Chair of the firm’s Antitrust & Competition Practice, Yates is currently in the ring representing the UFC in a high-stakes monopsony class action brought by fighters. His track record doesn’t stop there; for over two decades, he has also represented Apple in major monopolization and conspiracy cases, cementing his reputation as a powerhouse in the legal world. He has also represented the U.S. Soccer Federation.

When the lawsuit was filed on October 2, the joint statement from 23XI and FRM read, “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.”

The lawsuit claims that policies such as prohibiting teams from participating in races outside of NASCAR, mandating that teams buy parts exclusively from NASCAR-selected suppliers, and exclusive agreements imposed on NASCAR-sanctioned tracks are anti-competitive and detrimental to the growth of the sport.

MJ and Bob Jenkins weren’t the only unhappy ones with the way NASCAR handled the charter negotiations, veterans like Richard Childress admitted that “We didn’t have a choice to sign them, It was just, ‘You sign it or you lose your charters.’ I couldn’t take that gamble, period. And I know a lot of owners I talked to felt the same way.”

The holdout by these two teams also means there is a chance that NASCAR may not allow them to start in the Cup Series in 2025, since the previous charter agreement comes to an end this year. Realizing this possibility both teams have asked the court for a preliminary injunction

23XI and FRM file a motion for an injunction to compete next year

On Wednesday, 23XI Racing and Front Row Motorsports filed a motion for a preliminary injunction, which will allow them to keep their charters for the 2025 season as the lawsuit is ongoing. If their request is turned down, they will be forced to compete as open teams next year, which will mean they miss out on significant revenue.

Chartered teams are given a spot in every race unlike open teams and that is something that will be detrimental to both teams as they take the fight to NASCAR. A joint statement from the teams read, “The 23XI and Front Row Motorsports teams are fully committed to competing in next year’s Cup Series. Today’s procedural filing is the next step in advancing our case against NASCAR and their monopolistic practices, while protecting our drivers, race teams, and sponsors by establishing our legal right to run in 2025.” But this is not the only development.

They have also filed a motion requesting immediate access to documents and files from NASCAR executives. The battle for the future of NASCAR has just begun. It seems a lot of blows will be traded before its all said and done and we might witness some landmark changes to the sport of stock car racing soon.