With the filing of a formal brief on Friday, NASCAR has pushed its legal dispute with two of its race teams, 23XI Racing and Front Row Motorsports, to the U.S. Court of Appeals for the Fourth Circuit in an attempt to overturn recent preliminary injunctions that were issued in the teams’ favor. The 2024 charter agreement, which NASCAR maintains is essential to the sport’s operational and financial framework, is at the heart of the conflict. However, 23XI and Front Row contend that the charter system unfairly restricts teams and limits competition, in violation of antitrust rules. 23XI is co-owned by NBA legend Michael Jordan and NASCAR driver Denny Hamlin.
AOL reports that NASCAR’s most recent filing contends that the lower court, presided over by U.S. District Judge Kenneth D. Bell, used antitrust law incorrectly. According to NASCAR, the judge misconstrued common business clauses, such as the publication of lawsuits, as anti-competitive behavior. According to the sanctioning authority, teams have the freedom to choose whether or not to participate under the terms of their agreements, which are negotiated by businesses in accordance with established legal practice. According to AOL, NASCAR went on to explain the charter system as a means of preserving the sport’s long-term sustainability, stressing the necessity of luring and keeping investment. The group emphasized that groups like Front Row and 23XI are representations of business endeavors by entrepreneurs, including well-known individuals like Jordan — who benefit from the exclusivity and structure the charter provides.
In addition, NASCAR justified its use of exclusive contracts and non-compete agreements with racetracks, arguing that these terms are necessary to maintain uniformity in race organization and control operating expenses. It made the case that these actions are normal in professional sports and essential to preserving a healthy competitive atmosphere. In the meantime, Front Row Motorsports and 23XI Racing have persisted in claiming in court documents that NASCAR’s business strategy is monopolistic. They contend that the arrangement maintains an unequal playing field and denies teams equitable economic opportunity.
