NASCAR Commissioner Comments on Antitrust Lawsuit Filed by 23XI and Front Row Motorsports
In late 2024, NASCAR teams 23XI Racing and Front Row Motorsports filed an antitrust lawsuit against the organization, claiming NASCAR had engaged in monopolistic behavior related to its new charter agreement. This agreement governs how teams operate within the NASCAR Cup Series and significantly impacts their earnings.
Background on the Lawsuit
For the 2025 season, 13 out of 15 full-time teams signed onto NASCAR’s revised charter system, which provides chartered teams with considerably more financial benefits compared to non-chartered (Open) teams. However, a clause in the new deal prohibited teams from taking legal action against NASCAR, prompting 23XI and Front Row to refuse signing and instead file suit.
Both 23XI and Front Row currently hold three charters each. Initially, a court ruling allowed them to compete and earn revenue as if they had signed the new charter agreement. NASCAR challenged this, and on appeal, the court sided with NASCAR, giving it the power to reclaim the six charters. This would force the two teams to race as non-chartered entries unless the final appeal—currently in progress—rules otherwise.
The main antitrust trial is scheduled to begin in December 2025.
Commissioner Steve Phelps Speaks Out
While NASCAR has remained mostly quiet on the legal dispute, commissioner Steve Phelps recently addressed it in an interview with CNBC.
Referring to 23XI, he noted that the team is majority-owned by basketball legend Michael Jordan and minority-owned by driver Denny Hamlin. Phelps questioned the motivation behind the lawsuit and reiterated that NASCAR does not believe the case qualifies as antitrust.
He emphasized that the new charter agreement offered teams a 73% revenue increase over the previous contract, arguing that such a substantial boost contradicts claims of monopolistic behavior.
“In a monopoly, you typically don’t give that kind of increase—you do the opposite,” Phelps stated. “But we want strong, healthy teams because that results in better racing.”
Financial Transparency Issues
As part of the ongoing case, courts have requested financial disclosures from all full-time teams, even those not involved in the lawsuit. However, 12 of those teams have pushed back, warning that releasing such information to NASCAR could be “catastrophic.”
Teams and Drivers Involved
23XI Racing Full-Time Drivers:
- #23 Bubba Wallace
- #45 Tyler Reddick
- #35 Riley Herbst
Front Row Motorsports Full-Time Drivers:
- #4 Noah Gragson
- #34 Todd Gilliland
- #38 Zane Smith
NASCAR officials claim that 23XI and Front Row are attempting to dismantle the entire charter system through this lawsuit.
