NASCAR is a monopolistic bully. This has been the argument around which 23XI Racing and Front Row Motorsports have filed an anti-trust lawsuit. Ever since this lawsuit has gone public, there’s been a lot of discussion on how the France family has total control over the sport. Right from the racetrack to the supply vendors and even the race car. Meanwhile, the teams who are putting on the show every week burn millions in cash, which has become unsustainable financially.

Jeffrey Kessler, representing his clients, was optimistic about their chances to win this trial. Calling out the blatant misuse of power to their advantage, Kessler stated, “NASCAR is the poster child for being an illegal monopoly.” He argued that there’s no other stock car racing series that could rival NASCAR, and this gives the France family monopoly power at the expense of race teams.

For the neutrals following this saga, it might feel like Kessler’s statement is in the best interest of his clients. Therefore, there’s a chance that there might be a bias in his stance or painting NASCAR as a villain. But his argument is now being backed by an anti-trust expert, Harry First, a professor at NYU Law School.

NASCAR has no competition that could rival them in stock car racing

The France family has asserted their power over the premier series of stock car racing ever since its inception in 1947. Any previous attempts by star drivers and driver’s unions have been dealt with swiftly by the France family. Curtis Turner was the first one who challenge Bill France Sr.’s authority in 1961, and surprisingly, his demands draw parallel to what 23XI Racing is demanding in 2024.

But his attempts were thwarted by Bill France Sr., as he was handed a ban for a lifetime at the time for organizing a union. And even after six decades or so, the sport is at a crossroads with the same issues. While the charters do provide an avenue for teams to share the riches of the sport, NASCAR, as always, has a bigger piece of the pie.

Sharing his two cents over this tussle between NASCAR and the two teams, Harry First, while speaking on the Bloomberg podcast, said, “You know bullying is bullying, but the anti-trust laws don’t protect from bullying. What they want is competition in the marketplace that helps consumers… Some of these things that they’ve allegedly done do sound like the courts have been condemning recently from monopoly firms like exclusives that you can only deal with me. So that could be a problem for NASCAR in litigation.”

What First was trying to convey was NASCAR’s approach to how they were strong-armed into signing a charter deal. How they’ve acquired the ownership of a majority of the racing venues, along with the Next Gen race car. The only potential rival was the Auto Racing Club of America (ARCA), but NASCAR even took over them. Leaving potential team owners and drivers to participate on the NASCAR stage, agreeing to terms set by the series owners.

One of the big hurdles that 23XI Racing needs to address is its continued presence on the race track. After the end of 2024, they won’t have control over their charter and will be forced to enter the Daytona 500 as an open team. While they have filed for a preliminary injection, First believes this course of action will only lead to a settlement between the two parties.

23XI Racing might not retain its status as a chartered team in 2025

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Despite not signing the charter agreement, FRM and 23XI Racing are planning to race next season. In a step to protect their drivers, employees, and sponsors, they have filed for a preliminary injunction. An exemption of sorts to allow them to compete in the racing series for next year while they continue with this anti-trust case against the owners.

Now, that’s a pretty bold demand to make given that teams have sued NASCAR on anti-trust grounds. And they want to continue to run as a chartered organization with all the perks and benefits. Although both parties are expected to appear in the federal court in North Carolina soon, First believes this matter could be settled between the teams and NASCAR.

“My instinct is something’s going to be worked out with the parties. You know, they’re not going to throw everyone out of NASCAR; something will get worked out in some way so that the case can move on and the business can move on. Because that’s in everyone’s interest. They have to prove that an injunction is in the public interest; it’s hard to say if they’re going to be able to succeed with that at this point,” First added.

A charter negotiation turned into an anti-trust lawsuit is indeed a big move made by the two teams. However, it remains to be seen if their claims and arguments against NASCAR hold firm in the court.