Emails between NASCAR president Steve Phelps and FRM CEO Jerry Freeze illuminate the controversy at the heart of this dispute. FRM and 23XI Racing, owned by NBA icon Michael Jordan and NASCAR driver Denny Hamlin, allege that NASCAR’s charter practices constitute monopolistic behavior that negatively impacts the competitive balance of the sport. The dispute escalated after NASCAR proposed a new charter contract that would run from 2025 to 2031, giving teams a very short acceptance period of just six hours.
In the end, 13 of 15 teams agreed to the terms, but FRM and 23XI Racing flatly rejected the offer. The rejection was based on several unfulfilled conditions and subsequent legal challenges to the industry’s dominant position by NASCAR CEO Jim France. First introduced in 2016, the charter system is designed to ensure stability and help teams earn a place in the competition. But the deal has been criticized for stifling competition by implementing rules that prohibit teams from participating in non-NASA-sanctioned race series.
Journalist Matt Weaver leaked details of the email exchange between Phelps and Freeze through his X account, providing screenshots of the tense, albeit redacted, exchange. He announced:“Front Row Motorsports General Manager Jerry Freese and NASCAR President Steve Phelps exchanged emails after the final charter proposal was presented to the team. “The reference was amended last week as agreed by both parties.”
At the same time, NASCAR continues to insist that teams can still compete as unknown “open” teams, but that doing so could have serious financial consequences that could affect sponsorship and driver participation. The organization’s legal defense is expected to be presented in court on Nov. 4, and NASCAR could challenge its continued status in court. FRM and 23XI Racing have engaged Jeffrey Kessler, a prominent antitrust attorney with experience handling major cases for the four major North American sports leagues. Chris Yates represents NASCAR, who defended his experience.
The claims by FRM and 23XI Racing allege that NASCAR and the French family engaged in systematic actions to strengthen their monopoly. This includes purchasing racetracks, limiting track operations, purchasing the ARCA Menards series, and monopolizing the supply of high-end racing parts. They claim it has harmed teams, drivers, sponsors and fans and disrupted the sport’s balance of power.
