NASCAR vs Michael Jordan’s 23XI Racing Lawsuit Over Charter Agreement

The legal dispute between NASCAR and 23XI Racing, co-owned by Michael Jordan, has intensified, with NASCAR filing a motion to dismiss the antitrust lawsuit brought by 23XI Racing and Front Row Motorsports (FRM). The lawsuit challenges the terms of the 2025 charter agreement, arguing the current setup is unfair to teams and seeking a better deal for chartered operations.

The conflict began when 23XI Racing and FRM refused to sign NASCAR’s final charter proposal in September, making them the only two of 15 teams to opt out. NASCAR, which plans to have 32 chartered teams in 2025, has since declared the agreement unavailable to these teams. This prompted both organizations to file an antitrust lawsuit in October, claiming that NASCAR’s terms limit opportunities for fair participation. They also sought a court injunction to sign the agreement while the lawsuit is pending, although their initial request was denied.

NASCAR Defends Its Position and Criticizes Curtis Polk

In response, NASCAR has labeled the lawsuit as “baseless,” asserting that the plaintiffs recognize the value of the charters, which are worth millions of dollars, and acknowledging NASCAR’s efforts to increase revenue for teams. NASCAR also disputes claims of monopolistic behavior, arguing that their revenue-sharing practices contradict allegations of excessive market control.

Furthermore, NASCAR has accused Curtis Polk, a co-investor in 23XI Racing, of orchestrating a disruptive campaign to undermine negotiations. Polk allegedly encouraged boycotts, influenced media narratives, and urged other team owners to align against NASCAR. Polk has been vocal about his dissatisfaction with NASCAR’s financial model, highlighting that teams receive only about 13% of the sport’s revenue, despite NASCAR generating billions annually. His symbolic protest at the Southern 500, wearing a sign that read, “Please don’t ask me about my Charter,” underscores the depth of his frustration.

Charter Sales Add Complexity to the Case

Amid the ongoing litigation, 23XI Racing and FRM purchased additional charters from Stewart-Haas Racing (SHR), reducing SHR’s roster to one charter for its new Haas Factory Team. However, NASCAR has not yet approved these transactions. Both teams have requested the court to allow the charter sales to proceed while the lawsuit continues. The outcome of this request could significantly influence their plans for the 2025 season and beyond.

Implications for NASCAR’s Future

This legal battle carries significant implications for the future of chartered teams in NASCAR. With NASCAR dismissing the claims as meritless, the dispute over the 2025 charter agreement and the approval of additional charters remains unresolved. The court’s decisions will shape the operational landscape for teams like 23XI Racing and FRM and set precedents for future negotiations within the sport.

As the case unfolds, its impact on NASCAR’s structure and financial dynamics will be closely watched, marking a pivotal moment in the evolution of team ownership and operations in the sport.