23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports (FRM), owned by Bob Jenkins, filed an antitrust lawsuit against NASCAR and CEO Jim France, and, after a failed mediation attempt, will finally meet in court on Dec. 1.

The trial is about what the two teams view as a monopoly held by the race car organization. They take issue with NASCAR controlling all aspects of the business, including buying the racetracks that host its races and allegedly requiring teams to purchase supplies from single-source suppliers chosen by NASCAR. Another point of contention is not allowing teams to participate in other stock car races.

In October 2024, CNBC reported that the lawsuit alleged that NASCAR, along with its CEO, operates the business without transparency and in a way that doesn’t benefit team owners, drivers, sponsors, partners, and fans.

“We need a more competitive and fair system where teams, drivers, and sponsors can be rewarded for our collective investment by building long-term enterprise value, just like every other successful professional sports league,” Jenkins stated in the lawsuit.

A mediation took place Oct. 20 and 21, led by U.S. District Judge Kenneth Bell and Jeffrey Mishkin, a former executive vice president and chief legal officer of the NBA.

The two days of mediation focused on NASCAR’s bid to narrow the scope of damages the two teams say they are owed. The league accused 23XI and FRM of manipulating the other teams and conducting themselves with “classic cartel behavior, ultimately because they received less than they would have,” under the charter extensions signed last year.

The mediation provided no relief or agreement between the parties, setting up the court date.

According to The Associated Press, the charter system started in 2016 and is the league’s version of the franchise model used by most professional sports leagues. Having the charter guarantees that a team has a place in the 40-car field for all 38 races throughout the season, as well as a defined payout from the weekly purse. However, the two plaintiffs have claimed that the revenue model is not viable, while the teams sought to have the charters become permanent and receive a larger share of revenues and a voice in governance.

23XI and FRM refused to sign the current charters that the other teams signed off on. 

Now, the two teams are seeking a large monetary sum from NASCAR to cover their legal fees, the financial losses suffered this year from not being chartered, and the lawsuit.

Hamlin took to social media and is looking forward to the fight.

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