NASCAR Attempts to Dismiss Antitrust Lawsuit, Calling Team Owners’ Complaints ‘Misguided’
NASCAR has filed a motion to dismiss an antitrust lawsuit brought by 23XI Racing and Front Row Motorsports, alleging that the teams’ complaint is based on “private business frustrations” and not genuine anticompetitive behavior.
The motion comes after 23XI and Front Row refused to sign NASCAR’s final charter proposal at Atlanta Motor Speedway in September.
A Breakdown of the Dispute
The lawsuit stems from NASCAR’s charter system, which guarantees teams a place in the Cup Series field. The original 2016 charter agreement was set to expire on December 31, and teams had been in extended negotiations with NASCAR over a new agreement.
23XI and Front Row, along with other teams, demanded that charters be made permanent. NASCAR rejected this demand, and ultimately gave teams just six hours to sign a revised charter proposal the Friday evening of September 6th. The sanctioning body threatened to “eliminate the charter system altogether for 2025 and beyond” if teams did not comply.
Escalating Tensions and Public Criticism
In the lead-up to the lawsuit, 23XI investor Curtis Polk publicly expressed his dissatisfaction with NASCAR. Ahead of the Southern 500 at Darlington Raceway, Polk pinned a paper on the back of his shirt that read, “Please don’t ask me about my Charter. I don’t want to disparage NASCAR and lose it.”
Later, Polk asserted that teams received only about 13% of the sport’s overall revenue and estimated that drivers average $3 million in salary, for a total of $100 million to drivers in a sport that generates $3 billion in revenues.
NASCAR’s motion to dismiss further escalates the feud, alleging that Polk went even further by engineering strategies including “boycotts and potential boycotts of NASCAR events, a negative media campaign to affect the media rights negotiations, and threats/coercion to other team owners to ‘not break ranks.’”
NASCAR Responds in its Dismissal Motion
In its filing, NASCAR claims that 23XI and Front Row’s lawsuit is “a misguided attempt to dress up private business frustrations in antitrust garb.” The sanctioning body argues that the plaintiffs have failed to plead any reduction in competition, therefore lacking the required antitrust injury to establish antitrust standing.
“Plaintiffs’ Complaint is a misguided attempt to dress up private business frustrations in antitrust garb,” NASCAR stated in its filing. “Plaintiffs bring claims barred by the statute of limitations and laches; they fail to plead any reduction in competition, meaning they do not have the required antitrust injury to establish antitrust standing; and they aim to renegotiate contractual terms rather than address genuine anticompetitive behavior… claims should be dismissed.”
23XI and Front Row now have until December 16 to file a response to NASCAR’s motion to dismiss. The outcome of this legal battle will have significant implications for the future of NASCAR’s charter system and the balance of power in the sport.
How could the outcome of this lawsuit impact the balance of power between NASCAR and its racing teams?
## NASCAR in Hot Water: Antitrust Lawsuit Could Shake Up the Sport
**Host:** Welcome back to the show, and today we’re diving deep into the ongoing legal battle brewing between NASCAR and two of its top teams, 23XI Racing and Front Row Motorsports. Joining me today to unpack this complicated situation is racing expert and journalist, [Guest Name]. Welcome to the show!
**Guest**: Thanks for having me. This is definitely a case with a lot of moving parts, and it could have a big impact on the future of NASCAR.
**Host:** Absolutely. Let’s start with the basics. Can you explain what’s at the heart of this lawsuit?
**Guest:** Essentially, it all boils down to NASCAR’s charter system, which guarantees teams a spot in the Cup Series. The original agreement was set to expire at the end of this year, and teams like 23XI and Front Row were pushing for charters to be made permanent. NASCAR, however, rejected that demand and then gave teams a very tight deadline to sign a new revised charter agreement. This didn’t sit well with 23XI and Front Row, who felt the process was rushed and unfair, leading them to file this antitrust lawsuit. [[1](https://apnews.com/article/nascar-lawsuit-c7d6bcc83599056285b20df54c4c4faa)]
**Host:** So, it’s not just about the charters themselves, but also how NASCAR handled the negotiations?
**Guest:** Exactly. These teams are arguing that NASCAR used its position of power to force teams into signing unfavorable agreements. They feel threatened, and they believe NASCAR is engaging in anticompetitive practices to maintain control of the sport.
**Host:** And how is NASCAR responding to these accusations?
**Guest:** NASCAR has officially filed a motion to dismiss the lawsuit. They argue that the teams’ complaints stem from “private business frustrations” rather than genuine antitrust violations. They maintain that they negotiated in good faith and acted within their rights. [[1](https://apnews.com/article/nascar-lawsuit-c7d6bcc83599056285b20df54c4c4faa)]
**Host:** This definitely seems like a tension point within the sport. What do you think the outcome of this lawsuit could be, and how could it impact NASCAR in the long run?
**Guest:** That’s the million-dollar question. A successful lawsuit by 23XI and Front Row could significantly change the power dynamics within NASCAR. It could force them to reconsider the charter system, potentially leading to a more equitable model for teams. On the other hand, if NASCAR wins, it could set a precedent that strengthens their authority and makes it harder for smaller teams to challenge their decisions.
**Host:**
Thank you so much for shedding light on this complex situation, [Guest Name]. This is certainly a story we’ll be keeping a close eye on as it unfolds. Thank you for joining us.
