The anti-trust lawsuit by 23XI and Front Row Motorsports against NASCAR is adding a new twist almost every day. The lawsuit argues that NASCAR is only looking after its own interests much to the detriment of the racing teams and the drivers. Michael Jordan co-owned 23XI and FRM are seeking to challenge NASCAR’s alleged monopoly as they refused to sign the new charter agreement. Now a new twist in the ongoing saga has come up.

Last week the two teams filed a motion for expedited discovery, requesting “immediate access to documents and files from NASCAR executives.” They also filed an injunction that would allow them to race next season as chartered entities while the lawsuit is ongoing, having not signed the new charter agreement. But NASCAR has come up with a move that threatens the future of these two teams.

France family threatens 23XI and FRM’s survival with new charter move

“Bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims.” This is what a line of the NASCAR anti-trust lawsuit filed by Jordan and Co. reads. And the “monopolistic bullies” in this courtroom story have just rolled their dice.

For over two years, the Race Team Alliance has hounded NASCAR executives to grant their demands. These included making charters permanent and allowing for bigger slices of revenue. The 2016 revenue system has left many teams with dwindling coffers — Front Row Motorsports owner Bob Jenkins has not turned a profit since his team’s inception in 2005.

However, now that 23XI Racing and FRM are seeking to revolutionize the sport, the sport’s executives are turning their very demands against them. NBA legend Michael Jordan spent four years in the sport, accumulating seven Cup wins already — all that would be for naught if  NASCAR’s new plan goes through.

Given that only two teams chose to remain on the fence, NASCAR is currently in a better situation to discuss or alter the terms and conditions for a possible resolution. As a result in their response to the  lawsuit NASCAR mentioned, “NASCAR has taken steps, consistent with its contractual obligations to other Charter Teams, to plan for a season with only 32 Charters.”

“NASCAR is working on reallocating funds that Plaintiffs would have received to increase prize money and other special awards for the 2025 season for the benefit of teams that timely executed 2025 Charters, as well as Open teams who can compete to win the increased prize money,” the filing mentioned.

If NASCAR’s 32-charter plan is worked out that will mean that FRM and 23XI Racing’s existing four charters, let alone their expansion plans, will be invalid next season. This move came after the two teams filed an injunction seeking to keep their charters for the 2025 season. In case, that request is rejected they will be forced to compete as “open” teams next year, meaning lack of financial windfall.

They would also miss out on being locked for every race in that scenario, notably the Daytona 500, which accounts for 15% of the total season purse, per this latest court filing. NASCAR also refuted the legitimacy of the lawsuit. “Plaintiffs have filed a meritless suit against NASCAR alleging baseless antitrust claims in order to obtain commercial agreements they previously rejected, and to attempt to extort more favorable contract terms.”

The anti-trust lawsuit filed on October 2 read, “The France family and NASCAR are monopolistic bullies. And bullies will continue to impose their will to hurt others until their targets stand up and refuse to be victims. That moment has now arrived.” 

The filing also alleged that NASCAR uses various measures to discourage competitive racing and is detrimental to the growth of the sport. Practices 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 some of the monopolistic elements highlighted in the lawsuit.

Despite only two teams being involved in the fight against NASCAR, the outcome of the lawsuit will affect other teams and this is something many of them recognize.

Divided on paper, but united in spirit

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Granted, dwindling revenue has occupied a large portion of race teams’ demands in the NASCAR lawsuit. Being based on independent contractors using time and money for the privilege of wheeling race cars, NASCAR has always been profit-based. Before the 2016 charter system, no team had long-term viability and guaranteed entry into any Cup Series event or prize money. Everyone chased sponsorships — and also competed with NASCAR. Even after the charters came, new expenses popped up — according to a report, a team spends $18 million to put a race car on the field. Additionally, the Next Gen car’s costs can also be stifling.

As part of the new charter deal teams were seeking a cut on the business deals carried out by NASCAR bearing their name and likeliness. They also wanted a say in executive decisions, increased share of the revenue, and permanent charters. However, only a greater share of revenue was offered. Hence, the decision by 23XI and FRM to stand up against NASCAR has been subtly appreciated by some.

Talking to Frontstretch William Byron said, “I won’t really go into details but overall the perspective of the sport and what they’re fighting for and what that means, I think in the long term I’d like to see our sport become more prosperous. I feel like in watching other professional sports and where we could be, I’m excited for that so hopefully that comes to fruition.”

More money pumped into the sport through various means will also mean better wages for the drivers and teams have a more balanced field of competition. Kyle Larson also displayed his support for both the teams going up against NASCAR. He mentioned, “It’s cool to see somebody stand up to a huge corporation. Obviously, I would love to see our teams making more money because I think that helps the overall health of our sport. I definitely give kudos to Front Row and 23XI for sticking up for what they believe.”

NASCAR’s latest move puts the pressure back on Michael Jordan’s 23XI and FRM and threatens their very future in the sport. As the courtroom drama progresses, it will interesting to see what is the response from the two teams.