“We can’t give you a specific, ‘This will do it.’ There must be significant change.” Jeffrey Kessler, the representative attorney for 23XI Racing and Front Row Motorsports said in his official statement. Indeed, the extent of “monopolistic” mistreatment by NASCAR is so vast, that it is hard to pinpoint any one aspect. The ensuing NASCAR lawsuit is a culmination of years of exclusive behavior on the part of Jim France’s family.

The impasse regarding the charter agreement has finally thrown the spotlight on matters. Both Michael Jordan and Bob Jenkins refused to bend any further and took things to court. Although the initial charter demands were limited, this case reveals more riveting details about NASCAR’s autocracy.

NASCAR lawsuit is an eye-opener

76 years—that is the duration the France family has exercised its dynastic control over the sport. So this long time period is bound to reveal grisly information. The goal of the NASCAR lawsuit is not just to reach an equitable and accepted charter agreement, but to get to the bottom of things.

“How they’ve run it, where the money is really going, how it’s extracted, how the monopoly is being abused — all of that is going to be part of our discovery of the case.” However, noted anti-trust lawyer’s goals aside, we already have access to a pile of details about the monopoly.

Journalist Jeff Gluck covered some of them in an episode of The Teardown. Firstly, the economic side of things, as the charter deal “included numerous one-sided terms that were far less than what the teams would receive in a competitive market. It did not provide a fair split of revenue so that the teams would have a chance to earn a reasonable turn on their investment.” 

This charter factor was complemented by other things as well. For instance, the teams do not own the Next Gen car or its parts despite paying around $3 million for one car. Then it costs around $18 million to run one chartered team, excluding the driver’s salary.

The NASCAR lawsuit sheds light on Jim France‘s control over the sport. For example;

1. It claims infringement on intellectual property rights. So teams also do not have a say in their branding, as Gluck explained.
2. Even the racetracks—the teams’ competing ground—are under their control as NASCAR purchased the International Speedway Corporation.
3. Teams cannot venture outside the sport to enlarge their footprint, like participating in other automobile races.

All these things drove 23XI Racing and FRM to finally take a stand. Although NASCAR has a chokehold on their future, things may reach fruition with their grit. 23XI people are especially determined, as Denny Hamlin truly wants a fair sport.

The end goal is to benefit everybody

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When NASCAR launched its new charter agreement a month ago, its draconian terms jittered teams. With only a six-hour deadline to sign the deal, one team owner felt like NASCAR “put a gun to their heads.” Afraid to incur tremendous losses if NASCAR threatened to disable the charter system altogether, most teams signed. 23XI Racing and FRM understand their helplessness, so both teams are striving to seek a better future for the sport.

For one thing, they will seek “treble damages for the anti-competitive terms that teams have been subject to under the 2016 charter agreement.” Besides, the overall vision of fair racing fuels Denny Hamlin.

Hamlin said that the end goal of the NASCAR lawsuit would benefit everybody. “It’s actually pretty simple in my opinion. When I look around, I see that the best and most competitive sports in the world understand that when teams thrive, fans benefit, and that everyone who invests in making the sport a success should share fairly in that success. With the right changes, we can certainly make that a reality in racing.” 23XI Racing co-owner Curtis Polk also significantly added, “A true partnership, not dictatorship, is our goal.”

So 23XI Racing and Front Row Motorsports are showing grit to dislodge NASCAR’s monopolistic rule. Let us wait and see if they succeed in this likely long process.