NASCAR is embroiled in a legal battle involving 23XI Racing and Front Row Motorsports (FRM), two teams that have challenged NASCAR’s practices as monopolistic. The dispute centers around NASCAR’s request during a discovery hearing for confidential financial information from various NASCAR teams, including those not directly involved in the lawsuit.
Attorney Adam Ross, representing the non-party teams who signed the charter agreement, expressed strong opposition to NASCAR’s request for their financial details. These teams are concerned about the confidentiality and potential public exposure of sensitive data such as sponsorship deals, driver salaries, and revenue streams. Ross described the situation as a “crisis,” emphasizing that NASCAR has “gone a step too far” by seeking financial documents spanning the last 11 years. The non-party teams fear that disclosure could have devastating consequences if competitors gain access to this information.
The non-party teams have formally asked U.S. District Judge Kenneth Bell to dismiss NASCAR’s request for their financial records. Judge Bell acknowledged the seriousness of the case, which is a federal antitrust lawsuit, and indicated he has jurisdiction over the matter. He also expressed surprise at the intensity of the conflict, stating, “I am amazed at the effort going into burning this house down over everybody’s heads,” while affirming his commitment to preside over the trial scheduled for December.
The lawsuit was initiated by 23XI Racing and Front Row Motorsports, who allege that NASCAR is enforcing anticompetitive contracts by pressuring teams to accept charter extensions. These contracts, they argue, restrict competition and unfairly benefit certain teams. The plaintiffs declined to sign the charter extension in September 2024 as a protest against these practices.
Among the teams involved, 12 out of 15 have shown reluctance to disclose their confidential financial information. The two plaintiffs, 23XI Racing and FRM, along with Kaulig Racing (which voluntarily submitted its documents), are exceptions. Other prominent teams, such as Hendrick Motorsports, have signed the charter extension despite some dissatisfaction. Rick Hendrick, owner of Hendrick Motorsports, commented on the negotiations by saying he was tired of the process and acknowledged that no party gets everything they want in such deals.
The stakes of the lawsuit are significant. If the plaintiffs lose, they risk forfeiting their charter benefits, which include guaranteed entries to all 36 NASCAR Cup Series races and substantial financial payouts. This loss would impact not only team owners but also drivers and other team personnel who rely on these benefits for their livelihoods.
23XI Racing is co-owned by NBA legend Michael Jordan and NASCAR driver Joe Gibbs Racing’s Denny Hamlin. The team fields drivers Tyler Reddick, Bubba Wallace, and Riley Herbst. Front Row Motorsports competes with drivers Todd Gilliland, Noah Gragson, and Zane Smith.
