NASCAR files counter lawsuit against the teams suing it on antitrust grounds

NASCAR: Daytona 500 — Credit: Mark J. Rebilas-Imagn Images

NASCAR has now filed a countersuit against 23XI Racing and Front Row Motorsports for ‘willfully’ violating antitrust laws by orchestrating an anticompetitive collective effort to negotiate charter extension agreement terms.

It has also named 23XI Racing investor and longtime Michael Jordan agent Curtis Polk in the counterclaim.

23XI Racing is owned by Cup Series racing veteran Denny Hamlin, Polk and Jordan. Front Row Motorsports is owned by restaurant franchisee Bob Jenkins. These were the only two teams that ultimately chose not to sign an extension of the charter agreement, which were presented to teams in a de facto take it leave it fashion in September before the start of the playoffs.

Teams have treated charters, which provide guaranteed starting spots and predictable revenue to 36 teams, as franchises. NASCAR rejects any version of the charter agreement in which teams view charters as franchise and become collective partners with a league like in stick and ball sports.

NASCAR has already lost one element of the legal process in which a district judge awarded the teams charter recognized status for the 2025 season through a legal process that currently has a December 1 trial schedule. That decision has been appealed to the fourth district court in Richmond, Virginia.

In the counterclaim, NASCAR says the “the undisputed reality is that it is 23XI and FRM, led by 23XI’s owner and sports agent Curtis Polk, that willfully violated the antitrust laws by orchestrating anticompetitive collective conduct in connection with the terms of the 2025 Charter Agreements.”

“This is not the first time that 23XI and FRM have sought to impose their viewpoints, and those of their counsel, on the racing teams writ large,” NASCAR continued. “And it is truly ironic that in trying to blow-up the Charter system, 23XI and FRM have sought to weaponize the antitrust laws to achieve their goals.”

NASCAR says Curtis Polk attempted to orchestrate an illegal collective bargaining effort and threatened to boycott a qualifying race, presumably the 2024 Duel at Daytona. The Sanctioning Body called the teams in the suit ‘an illegal cartel.’

The countersuit claims that Polk headed the scheme ‘by representing all teams in negotiations, coordinating their conduct, and threatening teams that considered leaving the conspiracy and interfering and negatively affecting NASCAR’s attempts to renew its media rights agreements.’