NASCAR appeared before a federal judge on Wednesday to request the dismissal of an antitrust lawsuit filed against it by two Cup Series teams, including 23XI Racing, co-owned by NBA legend Michael Jordan.
In the event the case proceeds, NASCAR also asked the court to require the suing teams to post a bond to cover fees they would not be legally obligated to pay if they lose the case. Additionally, NASCAR requested that U.S. District Judge Kenneth Bell, presiding in the Western District of North Carolina, remove NASCAR chairman Jim France as a defendant in the lawsuit.
Judge Bell, expected to make a prompt decision, suggested the likelihood of the case going to trial this year. He concluded the hearing by stating, “This case is going to be tried this year, and deserves to be tried this year.” A December trial is anticipated.
The case had initially been managed by Judge Frank Whitney, who, last November, declined to recognize the teams as chartered entities. This prompted an appeal. Upon transferring the case, Bell reversed Whitney’s ruling, granting 23XI Racing and Front Row Motorsports charter status for the 2025 season. In response, NASCAR requested the teams post a bond to secure the payouts they would receive as chartered teams, in case they ultimately lose the lawsuit.
NASCAR’s charter system, implemented in 2016, grants 36 cars guaranteed entry and financial benefits for every race, with four additional “open” spots in the lineup. After nearly two years of negotiations over a revised charter system, NASCAR extended an offer in September. Out of 15 teams, only 23XI Racing and Front Row Motorsports rejected the deal and filed the lawsuit.
The two teams allege that NASCAR, as the sole stock car racing authority in the U.S., monopolizes the sport and denies teams their fair share of revenue.
During the hearing, Judge Bell questioned both sides about payout structures and the potential harm to NASCAR if the teams operated as open cars instead of chartered ones. At one point, Bell asked NASCAR, “Why give a charter to anyone?” NASCAR attorney Christopher Yates responded, “NASCAR would be perfectly fine going back to that (pre-charter) model.”
Bell emphasized the urgency of the case, explaining that he usually does not hear motions to dismiss but made an exception to expedite proceedings. He expressed his disdain for discovery disputes, warning both sides to collaborate and avoid unnecessary conflicts. He also pledged to personally oversee the discovery process, noting that the losing side would bear the associated fees.
As the likelihood of dismissal diminishes, the focus shifts to whether Judge Bell will require the teams to post bond before the season begins next month. NASCAR argued that these funds are necessary as they would be redistributed to chartered teams if 23XI Racing and Front Row Motorsports lose the case.
Jeffery Kessler, a prominent antitrust lawyer representing the teams, countered that NASCAR has made no guarantee to redistribute the funds, leaving open the possibility that some of the money could be used to cover NASCAR’s legal fees.
Neither Michael Jordan nor Front Row owner Bob Jenkins attended the hearing. However, 23XI co-owner Denny Hamlin, accompanied by his fiancée and mother, was present. Front Row general manager Jerry Freeze also attended, alongside NASCAR executives Jim France, vice chairman Mike Helton, legal counsel, and communications team members.
