NASCAR\u2019s most powerful team owners on Friday urged a settlement in the antitrust lawsuit brought by Michael Jordan\u2019s race team, 23XI Racing, and Front Row Motorsports.<\/p>\n
Representatives from nine of NASCAR\u2019s 13 non-litigant charter teams submitted signed declarations to be included in NASCAR\u2019s summary judgment filing in the case, which is scheduled to begin trial on Dec. 1 in Charlotte, N.C.<\/p>\n
Jordan\u2019s 23XI Racing, along with Front Row Motorsports, have accused NASCAR of being an illegal monopoly. They are represented by noted antitrust attorney Jeffrey Kessler, who spearheaded the House v. NCAA lawsuit.<\/p>\n
But as the trial date approaches and uncertainty swirls over what the lawsuit could mean for the future of stock car racing, many of the team owners expressed a feeling of urgency to see the litigation resolved and indicated the current charter system was vital for their continued existence.<\/p>\n
Those who submitted declarations included each of the \u201cBig Three\u201d team owners \u2014 Rick Hendrick (Hendrick Motorsports), Roger Penske (Team Penske) and Joe Gibbs (Joe Gibbs Racing) \u2014 as well as notable figures like Richard Childress and Brad Keselowski.<\/p>\n
Trackhouse Racing, Spire Motorsports, Kaulig Racing and Haas Factory Team were the only charter-holding teams not included in the declarations.<\/p>\n
\u201cToday\u2019s filing demonstrates that NASCAR\u2019s charter system has the support of race teams throughout the garage, and that the 23XI Racing and Front Row Motorsports lawsuit is not in the best interests of the sport,\u201d NASCAR said in a statement. \u201cThis lawsuit is not about antitrust; it is merely an attempt to renegotiate an agreement that was signed and is being honored by all other race teams.\u201d<\/p>\n
But Kessler said the various declarations are \u201csupportive of my clients\u2019 position\u201d because they are not seeking to eliminate the charter system and are in the same boat as the other teams when it comes to depending on it.<\/p>\n
\u201cThey have supported charters because teams cannot survive without them,\u201d Kessler said. \u201cThe declarations from team owners and executives acknowledge this same economic reality. Nor do they excuse NASCAR\u2019s anticompetitive conduct or its unlawful monopoly, points 23XI and Front Row have maintained from the start.<\/p>\n
\u201cMany teams have expressed a desire to resolve this matter, a goal my clients share, but NASCAR has yet to demonstrate a similar willingness to engage in meaningful resolution.\u201d<\/p>\n
In August, U.S. District Court Judge Kenneth D. Bell warned both parties that if the teams prevailed, NASCAR would be reshaped forever \u2014 including possible forced sales of racetracks \u2014 and said charters would \u201clook different even if the charter system survives.\u201d<\/p>\n
That was clearly enough to spook many team owners who rely on the charters \u2014 similar to franchises in other sports \u2014 to keep their teams afloat. Even 23XI has said that without getting its charters back, it is likely to cease existence due to the financial difference between having them and not.<\/p>\n
\u201cThe most important thing to me is that this lawsuit is resolved amicably, quickly and in a manner that preserves the charter system and the long-term viability of our incredible sport,\u201d Gibbs wrote. \u201cThat must happen to ensure the health, happiness and prosperity of our many hundreds of employees and their families. Nothing matters more to me.\u201d<\/p>\n
Rick Hendrick, whose team is the winningest in NASCAR history, wrote he wished to see the suit \u201cresolved in a way that does not put the sport at risk\u201d and emphasized the charter system was vital to Hendrick\u2019s continued stability.<\/p>\n
\u201cUndoing what we have collectively negotiated will not only result in immeasurable damage to our sport and our respective businesses, it will, most importantly, hurt the people and families that depend on us for their livelihoods,\u201d he wrote.<\/p>\n
Penske wrote about how he took NASCAR\u2019s charter concept to IndyCar \u2014 which he owns \u2014 in 2024 and created a similar system based on his positive experiences with it.<\/p>\n
In addition, Penske wrote that NASCAR\u2019s Next Gen car has reduced costs \u201cdue to a smaller number of race cars in the fleet and a lesser volume of parts replacements.\u201d That\u2019s notable because team owners have previously indicated the Next Gen car did not save them any money or has even been more expensive.<\/p>\n
Legacy Motor Club CEO Cal Wells III wrote in his declaration that the cost to compete in the Cup Series has been reduced by \u201capproximately 40 percent\u201d thanks to the Next Gen car.<\/p>\n
23XI and Front Row filed their joint lawsuit last fall against NASCAR and its CEO Jim France after the two teams declined to sign an extension to the charter agreement. 23XI, owned by a group that includes Jordan and current star driver Denny Hamlin, and Front Row, owned by fast-food restaurant entrepreneur Bob Jenkins, were the only two of 15 that opted against signing the seven-year agreement that took effect this year and runs through the 2031 season.<\/p>\n
In stating why they did not sign the agreement, 23XI and Front Row said they opposed NASCAR making a take-it-or-leave-it offer, when NASCAR said that if the teams didn\u2019t accept its final offer, the league would eliminate the charter system (along with other grievances on how NASCAR and the France family has long operated the league).<\/p>\n
France\u2019s father, Bill France Sr., founded NASCAR just after World War II, and the family has maintained control ever since.<\/p>\n
NASCAR\u2019s charter system assures charter teams additional revenue \u2014 nearly one-third more than non-charter teams \u2014 and guarantees entry into all 36 Cup Series points races. The extension to the agreement last fall followed two-plus years of contentious negotiations, with the teams\u2019 side led by 23XI co-owner Curtis Polk, Jordan\u2019s longtime business partner.<\/p>\n
Polk was named as a defendant in NASCAR\u2019s countersuit and was referenced in Friday night\u2019s filing.<\/p>\n
\u201cNeither greed, nor an individual\u2019s bruised ego over his inability to deliver on some promises he made to other teams, justifies trying to destroy an institution that countless people, including the France family, tracks, team owners, and drivers have spent decades developing and growing,\u201d NASCAR wrote in its filing. \u201cPlaintiffs\u2019 case should come to an end (as the garage wants) so that the focus can return to exciting racing on the track for the remainder of 2025 and planning can begin for a pivotal 2026 season.\u201d<\/p>\n
Kessler said on Friday that \u201cNASCAR\u2019s new motion changes nothing and we look forward to presenting our case at trial on December 1.\u201d<\/p>\n
\u201cWe are confident NASCAR\u2019s summary judgment motion is not going to succeed,\u201d he said. \u201cThis lawsuit has always been about making NASCAR more competitive and fair for the benefit of drivers, sponsors, teams, and fans who love the sport.\u201d<\/p>\n
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