NASCAR Lawsuit: Michael Jordan and Co Hope to Strangle France Family’s “Fantasy” With Latest Development

23XI and Front Row Motorsports are not backing down anytime soon. After NASCAR asked a federal judge from the Western District of North Carolina to dismiss the anti-trust lawsuit, the plaintiffs have issued a scathing response to the sanctioning body, reiterating their stance. Even though the organization has been downplaying the claims made by the two teams, it seems like Jeffrey Kessler’s side is determined to see this through, irrespective of the consequences that they might face if the circumstances don’t go in their favor.

With the situation heating up between the two parties, it will be interesting to see what the court decides in the future. Will they dismiss the plaintiff’s case, or begin a discovery, which will result in an investigation into the financial records as well as a subsequent hearing?

Plaintiffs don’t hold back amidst talk of NASCAR lawsuit dismissal

Earlier this month, NASCAR asked the court to dismiss the anti-trust lawsuit, claiming that it was filed only because of “dissatisfaction with business negotiations that didn’t go their way”. What the sanctioning body is referring to, is the final charter proposal that was offered to teams ahead of the opening playoff race at Atlanta Motor Speedway. While 13 Cup Series teams put pen to paper, 23XI Racing and Front Row Motor Speedway declined and enlisted the services of reputed anti-trust attorney Jeffrey Kessler to file a lawsuit.

The plaintiffs issued a response after the organization attempted to get the NASCAR lawsuit dismissed, which read, “Defendants (NASCAR) motion to dismiss is a fantasy. It is based on their contested version of the facts, instead of the Complaint’s allegations. It is also based on a mischaracterization of Plaintiffs (23XI/Front Row) legal claims, a mischaracterization of the relevant input market, and a mischaracterization of governing law. It is draped in rhetoric about this being a contractual dispute when Defendants know that the Complaint is alleging facts plausibly showing Defendants’ unlawful maintenance of monopoly.”

Even though 23XI and Front Row Motorsports are standing their ground, NASCAR has accused both teams of using the lawsuit as an excuse to strong-arm the sanctioning body into giving better terms. Defending their stance of the case needing to be dismissed, the sanctioning body said that the plaintiffs were going to court “to renegotiate contractual terms rather than address genuine anticompetitive behavior.” However, the claims were refuted by both teams, who reiterated their commitment towards seeing this through rather than reaching a ‘settlement’.

Dismissing monopoly or anti-competitive practices claims, the organization has said that the charter value has increased every year, which proves that the 23XI Racing and Front Row Motorsports’ NASCAR lawsuit has no validity. However, the view is not shared by the plaintiffs, who have also issued a revised preliminary injunction to retain their charters for 2025 while the court case is taking place. With the tensions rising higher than ever, there is plenty at stake for all parties involved, and the court’s verdict may change NASCAR’s future forever.

What are 23XI and Front Row fighting for?

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The plaintiffs believe that NASCAR controls the market. The majority of tracks used in the Cup Series are owned by the sanctioning body, while the Next-Gen car’s components can only be constructed by using components that are sold by vendors approved by the sport’s hierarchy. If that wasn’t all, as per contract terms, teams are not even allowed to compete in other divisions without NASCAR’s approval. Apart from the ‘monopolistic practices’, both 23XI and Front Row also believe that the terms being offered are below market value, especially considering what they bring to the table.

Speaking on behalf of both teams, attorney Jeffrey Kessler said, “The below competitive market terms of the 2025 Charter Agreements, like the 2016 Agreements, have deprived racing teams of a fair chance to earn a profit. But with no viable choice, most teams acquiesced to Defendants’ take-it-or-leave-it demand (“under duress”). Plaintiffs refused to sign the 2025 Charter Agreement because it contained a release that Defendants contend would waive Plaintiffs’ antitrust rights.”

According to the plaintiffs, the NASCAR lawsuit has been filed because the sanctioning body is the only premier stock car racing series, occupying 100% of the market share. Reiterating their claims about there being a ‘monopoly’, the teams have also cited that independent tracks are being made to sign exclusivity terms, which stops them from hosting any other stock car race. They have also blamed NASCAR for forcing teams to buy parts from selected sources for the Next-Gen cars, while the acquisition of the ARCA Racing Series and the International Speedway Corporation has further strengthened their grip on the market.

Even though it’s likely that 23XI and Front Row Motorsports may have to run as ‘open’ teams in 2025, Jeffrey Kessler has claimed that the terms being offered will cause a significant financial setback to both Michael Jordan and Bob Jenkins’ teams. He said, “While Plaintiffs can compete as ‘open’ teams in 2025, the even more onerous, below competitive market terms imposed on open teams will cause additional antitrust injury to Plaintiffs.”

23XI Racing is a fairly new team, launched in 2021 with Michael Jordan and Denny Hamlin at the helm. Now, going into just their fifth year, they could be on the brink of financial turmoil. Hamlin, however, has ensured that 23XI Racing’s employees won’t face any of the consequences. “As 23XI, we’re prepared for any outcome. I think Michael [Jordan] has stated and I’ve stated to the team we will not let this affect our employees whatsoever in any kind of way, and any financial distress is going to have to fall directly on the owners. It will not fall on our people whatsoever. We will not allow that to happen.”

With plenty at stake, it will be interesting to see if the plaintiffs’ revised preliminary injunction request is finally accepted for the 2025 season.