NASCAR Challenges Court Decision That Clears 23XI Racing, FRM to Race
The legal dispute between NASCAR and two of its elite Cup Series teams has taken an additional turn. Despite their refusal to sign the new charter agreement unveiled in September, NASCAR has formally appealed a district court decision allowing 23XI Racing and Front Row Motorsports to retain their charter in 2025. The teams have sued NASCAR previously, claiming it runs as a monopoly.
What are NASCAR’s Allegations?
NASCAR says that the district court decision it has appealed breaks federal antitrust laws. According to NASCAR, the court’s order transforms a legal fight into a commercial transaction, therefore erasing confidence in its processes. The lawsuit, filed by 23XI Racing and Front Row Motorsports, alleges that NASCAR and CEO Jim France have engaged in monopolistic practices to enrich themselves at the expense of top teams.
What Are the Allegations Against NASCAR?
The lawsuit claims NASCAR benefits financially through its ownership of major racetracks across the country. It also argues that restrictions on Cup teams participating in other stock car series, along with NASCAR’s control over car and parts suppliers, constitute monopolistic practices. Teams have no option but to purchase exclusively from approved sources and race within NASCAR-approved events.
Denny Hamlin and Michael Jordan own 23XI Racing together. Tyler Reddick, Bubba Wallace, and Riley Herbst are their drivers. There are three drivers for Front Row Motorsports: Todd Gilliland, Noah Gragson, and Zane Smith. The team is run by Bob Jenkins.
What Impact Is the Legal Battle Having?
Sportsbooks and betting experts are paying close attention to the ongoing legal battle between NASCAR, 23XI Racing, and Front Row Motorsports. Oddsmakers are considering the possible effects on the racing scene as the legal struggle gets more intense, especially on the odds and betting markets for the 2025 Cup Series season.
iGaming creators, who have long drawn on motorsports themes for their games, are also monitoring the developments. Should 23XI Racing and FRM be able to beat NASCAR in court, they may become icons of independence—a brand identity game developers could profit from. This could prompt developers into making 23XI and FRM themed slots for desktop and mobile casinos.
How the Charter Issue Created the Conflict
What the lawsuit is really about is the latest NASCAR charter negotiations. To fully understand what’s going on, it’s important to understand the charter system put in place in 2016 that was meant to last until 2024.
The 2016 agreement changed the way Cup race teams worked so they were more like franchises in other major sports. NASCAR’s charter system offered guaranteed race participation and a share of the earnings, similar to how the New York Yankees are a part of Major League Baseball. The goal was to bring stability and long-term value that would, in theory, encourage more investment to improve competition.
For more than two years, teams have argued that NASCAR’s economic model is ‘broken,’ with more than 90% of the sport’s value held by NASCAR and the tracks. This, in turn, makes teams rely on advertising deals for most of their money.
To address revenue issues, teams sought more media rights revenue and a new charter agreement. The media deal succeeded, with teams receiving around 50% of the revenue. However, charter negotiations were contentious.
Teams wanted NASCAR to make the charter system permanent, but NASCAR’s final offer, running until 2031, didn’t include this. 23XI Racing and FRM rejected it, while 13 teams signed, citing pressure to do so, fearing NASCAR might eliminate the charter system for future seasons.
