The 2024 NASCAR offseason hasn’t been quite as boring as some fans might have expected. In fact, it’s been anything but. Thanks to an ongoing lawsuit led by Michael Jordan and Denny Hamlin’s 23XI Racing and Bob Jenkins’ Front Row Motorsports, the racing world has been on its toes. These two teams are challenging NASCAR’s practices, and their legal battle could have much wider implications for the future of the sport — potentially opening the gates for other teams to join their fight.
The two teams were fighting for a preliminary injunction, enabling them to race as charter teams while also fighting their ‘antitrust’ lawsuit against the racing organization. And now with the court granting them that, the other 13 signees of the charter agreement might be wondering if they can join in the teams’ fight against NASCAR’s alleged “monopolistic” practices.
Why could more teams join the lawsuit?
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A federal judge, Kenneth Bell, recently granted a preliminary injunction in favor of 23XI and Front Row Motorsports. It also requires NASCAR to transfer a charter from Stewart-Haas Racing to 23XI and Front Row, giving those teams the right to field three chartered entries each in the 2025 season.
This is a massive victory for the plaintiffs, as it provides them with stability and guaranteed entry into every race, including the Daytona 500 — the crown jewel of the NASCAR calendar, not to mention the race with the highest race purse. The judge pointed out that without a charter, the teams would likely suffer “irreparable harm” by losing access to top drivers and sponsors. The ruling also found that NASCAR possesses “monopoly power” within the sport, which could seriously undermine its position in future negotiations or a full trial.
With this ruling, the spotlight is now on the other 13 teams who signed the charter agreement with NASCAR. For years, many of them have grumbled about the terms of the charter system. Team owners like Rick Hendrick (Hendrick Motorsports) and Richard Childress (Richard Childress Racing) have publicly admitted that they weren’t entirely ‘happy’ with the agreement but felt they had no choice but to sign it. Hendrick himself had stated, “Not everybody was happy. But in any negotiation, you’re not going to get everything you want.” Childress, meanwhile, explained that he “didn’t have a choice” when asked about his decision to sign the charter.
Now, after the plaintiffs’ victory, these teams might be wondering: Should we have fought harder for better terms? If 23XI and Front Row Motorsports can take on NASCAR without facing major consequences, perhaps it’s time for others to get in on the action. As NASCAR analyst Eric Estepp noted, the judge’s decision to strike down the so-called “you can’t sue us” clause in the charter agreement is a significant development.
In his analysis, he said, “First things first obviously this is just the opinion of a single federal judge but it makes you wonder if any of the other 13 chartered teams would consider joining this lawsuit. This judge basically threw out the NASCAR’s ‘you can’t sue us clause’ and said hey, that’s arguably illegal. That’s unenforceable. Those 13 other teams that signed the agreement may see that and say okay well shoot, maybe we’ll attach ourselves to this lawsuit.
What’s particularly intriguing is how the ruling could change the landscape for all chartered teams. NASCAR may be under more pressure than ever before to negotiate with 23XI and Front Row Motorsports, potentially offering more favorable terms for these teams. And if that happens, other teams on the outside — such as Richard Childress Racing, Joe Gibbs Racing, Team Penske, and others — might feel compelled to jump in.
Estepp suggests that if the lawsuit forces NASCAR to the bargaining table, there’s a chance that the terms of the charter system could be revised. Richard Childress’ earlier reluctance to join the lawsuit could now change. In light of the recent developments, he may be more inclined to rethink his earlier stance, where he said, “I would just say that I don’t think we can join (the lawsuit). It’s way too early to talk about all the legal stuff”.
If NASCAR truly is feeling the pressure from this legal challenge, Childress and other team owners might see joining the lawsuit as a way to protect their interests — and their future in the sport.
NASCAR’s monopoly power and the bigger picture
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What makes this lawsuit especially compelling is the judge’s assertion that NASCAR has monopoly power within the sport. In his ruling, Judge Bell pointed out that NASCAR is the only premier stock car racing series in the U.S. and that there are no direct substitutes for the specialized racing teams and cars that NASCAR has.
Bell’s exact words were: “NASCAR’s Cup Series is the only premier stock car racing series in the United States, and premier stock car racing is a distinct form of automobile racing with unique cars and highly specialized racing teams for which other types of motorsports like Formula 1 and IndyCar are not substitutes,” Bell wrote. “Therefore, NASCAR fully controls which race teams can compete at the highest level of stock car racing — effectively, it has a 100 (percent) market share.”
This recognition of NASCAR’s monopoly power could have far-reaching implications. If the court continues to side with the plaintiffs, it may force NASCAR to make significant changes to its charter system or other practices that have been criticized for stifling competition. If other teams join the lawsuit, it could result in a collective push for reform that reshapes the sport’s future.
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The road ahead for this legal battle is still uncertain. The ruling is only a preliminary one, and NASCAR may still mount a strong defense as the case progresses. But for now, the victory for 23XI Racing and Front Row Motorsports has shaken the foundation of NASCAR’s charter system. It’s opened the door for other teams to consider joining the fight — especially if they’re unhappy with the current arrangement. Which they are!
If this legal challenge gains momentum, we could see more teams step forward, making it clear that the charter system — and NASCAR’s control over it — is no longer a foregone conclusion. The lawsuit might just be the spark that sets off a wider movement for change within the sport. And in the world of NASCAR, a little drama is never a bad thing. What do you think? Would other teams join in? Share your thoughts with us in the comments below.
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Is it time for other teams to join 23XI and Front Row in challenging NASCAR's control?
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Is it time for other teams to join 23XI and Front Row in challenging NASCAR's control?
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