The period between NASCAR race weekends is usually a quiet one unless something dramatic happened in the last race. Unfortunately, there was nothing particularly earth-shattering to write home about at the Kansas Speedway. Not unless Ross Chastain snapping a 30-race win drought counts. However, 23XI Racing and Front Row Motorsports had other plans, and they collaborated to steal headlines in a big way.

As it turns out, the two organizations have taken the drastic step to file a lawsuit against NASCAR. This move was prompted because most of the Cup teams signed the deal, except for those two. However, it is believed that the teams signed under duress in a ‘take it or leave it’ scenario. Safe to say, 23XI Racing and Front Row Motorsports were not about to take things lying down.

For a bit of backstory, NASCAR had been in the process of negotiating a new charter deal with all the Cup teams. This came on the back of a brand new media rights deal that had been signed earlier this year. Since then, NASCAR and all the various teams have been locked in intense negotiations. Unfortunately, days turned into weeks, and weeks turned into months, and there was still no progress.

Of course, this is Michael Jordan, so his influence would have attracted one of the brightest legal minds. The one to answer the call was Winston & Strawn LLP, Partner and Co-Executive Chairman, Jeffrey Kessler. In all honesty, this is actually very bold from Michael Jordan and Bob Jenkins. “Everyone knows that I have always been a fierce competitor, and that will to win is what drives me and the entire 23XI team each and every week out on the track,” Jordan shared after the Lawuist news broke. “I love the sport of racing and the passion of our fans, but the way NASCAR is run today is unfair to teams, drivers, sponsors, and fans. Today’s action shows I’m willing to fight for a competitive market where everyone wins.”

Next in line to share the thoughts was the person handling the lawsuit. As shared by Dirty Mo Media’s Instagram account, Jeffrey Kessler told Carla Gebhart, “On September 6th, NASCAR using its monopoly, went to all the teams at 5 o’clock and said, ‘Here’s a 100 page agreement. Either accept it by six or you cannot have a charter to compete.’ Most of the teams folded, because they couldn’t afford to fight NASCAR. They couldn’t risk their franchise and employees. Two teams, my clients, did not fold. That’s Front Row and 23XI.”

Now speaking of “cannot have a charter,” as Kessler revealed, is something that is every NASCAR team owner’s concern at the moment. And, with time, the landscape of the sport, particularly regarding the financial dynamics and team ownership, has changed a lot. To understand better, here’s a charter timeline.

• In 2016, 36 charters allowed guaranteed race spots, enhancing team security.
• Charters initially ranged from $1 million to $5 million based on performance and history.
• Late 2010s saw prices rise from $10 million to $15 million due to growing interest and market stability.
• Early 2020s prices reached $20 million to $30 million as NASCAR’s popularity surged during the pandemic.
• Current charter values exceed $30 million, driven by high-profile owners and increased investment in the sport.

That is insanely a 2900% increase in less than 10 years!

Further highlighting what was the tipping point for the standouts; 23XI and FRM, Jeffrey Kessler added, “They decided, somebody’s got to stand up to this bully. Somebody has got to say, enough is enough. They are going to file this lawsuit, so that NASCAR could come into the 21st century. Give these teams and drivers, a fair economic chance to match the fact that NASCAR fans do not go to see races to watch Jim France. They go to watch these teams and these drivers.”

Who is Jeffrey Kessler, the lawyer handling the NASCAR lawsuit for two teams?

Jeffrey Kessler, Co-Executive Chairman at Winston & Strawn, is a leading authority in antitrust, trial, and sports law. For his extraordinary work in sports, he was named one of “The Most Influential People in Sports Business” by Sports Business Journal in 2021 and has also earned a spot on SBJ’s “Power Players: Outside Counsel” list.

Here are some of his notable successes in sports.

1. NFL Free Agency and Salary Cap (1992)

• Case: McNeil v. NFL
• Outcome: Kessler played a pivotal role in securing free agency for NFL players, challenging the NFL’s Plan B system (which restricted player movement), which led to the introduction of modern free agency and the NFL salary cap, drastically changing player-team negotiations.

2. Defending NFL Players’ Rights in the 2011 Lockout

• Case: Brady v. NFL
• Outcome: Kessler represented NFL players during the 2011 lockout. He helped file a class-action antitrust lawsuit against the NFL, which ultimately led to a new Collective Bargaining Agreement (CBA) and the resumption of the NFL season.

3. NCAA and Student-Athlete Compensation

• Case: O’Bannon v. NCAA and Alston v. NCAA
• Outcome: In both cases, Kessler represented college athletes seeking compensation. The O’Bannon case successfully challenged the NCAA’s use of athletes’ likenesses without compensation. The Alston case led to a Supreme Court ruling that allowed for educational-related benefits for college athletes, marking a significant shift in NCAA amateurism rules.

4. NBA Salary Cap (1995)

• Case: NBA v. National Basketball Players Association (NBPA)
• Outcome: Kessler represented NBA players in negotiations that led to the establishment of the NBA’s salary cap and free agency rules. This case helped set the modern economic structure of the NBA.

5. Women’s Soccer Equal Pay (2019)

• Case: USWNT v. U.S. Soccer Federation
• Outcome: Kessler represented the U.S. Women’s National Soccer Team in their equal pay lawsuit. Although the case faced some legal hurdles, the USWNT ultimately settled in 2022, securing equal pay and conditions for women’s soccer players.

6. International Sports Antitrust (Formula 1)

• Case: FIA v. Arrows Grand Prix International (2001)
• Outcome: Kessler represented Arrows in a high-profile case challenging Formula 1’s restrictive practices, using antitrust law to argue against FIA’s control over the sport. While the case was settled, it set a precedent for legal challenges in global sports governance.

Now another motorsport seeks Kessler’s guidance. While the outcome for NASCAR vs. 23XI & FRM is far from sight for now, the leading sports attorney lauded the two NASCAR teams for standing up against the sports body. He said, “Not everybody’s got the courage to stand up to a bully. I’ve done these fights in college, in the NFL, in the NBA. Not everybody will stand up, take the pressure, the risk. Some people will go along with scraps. 23XI, Front Row, have had enough. Somebody has to say ‘This is enough,’ that’s what they’ve done.”

One thing is for sure, the two teams are not backing down anytime soon. The bottom line is that they want a fair share of the financial pie, which would be sustainable in the long term.