NASCAR Loses: Judge Dismisses Counterclaim in Antitrust Lawsuit with 23XI Racing and FRM

Federal Judge Dismisses NASCAR’s Claim Against Suing Teams

A federal judge ruled in favor of 23XI Racing and Front Row Motorsports, dismissing NASCAR’s counterclaim in a legal dispute over allegations of anti-competitive practices. Judge Kenneth Bell’s decision represents a significant development in the case involving two racing teams. Judge Bell’s ruling focused on NASCAR’s assertion that Curtis Polk, co-owner of 23XI, had illegally conspired with other teams during negotiations for new bylaws. Polk, who is also the business manager for Michael Jordan, owner of 23XI, was part of a negotiating team that collaborated with NASCAR for more than two years for the bylaws agreement signed last year. NASCAR argued that the 2023 boycott of the team owners council meeting negatively affected media rights negotiations and that the unification of the 15 organizations for charter talks allowed the teams to obtain a better deal. Judge Bell determined that the boycott was a negotiation tactic “that appeared to have little impact,” as NASCAR initiated individual negotiations shortly thereafter. He also found that 23XI and FRM did not engage in an “unreasonable restraint of trade,” given that NASCAR’s individual meetings with the teams resulted in changes to the charter agreement.

“The evidence here establishes that not only were individual negotiations ‘available,’ but NASCAR had such negotiations regularly during the negotiation period,” Bell wrote in his order. “And those individual negotiations achieved concrete results, including the final 2025 Charter agreement that was signed by 13 teams acting individually (and contrary to the supposed ‘joint agreement’)”.

Judge Kenneth Bell

Judge Bell must also rule on two other summary judgment motions. The first is from NASCAR, requesting a decision in its favor, and the second from 23XI and FRM, to designate the market as “premier stock-car racing.” Last week’s mediation failed to resolve the dispute. The trial is scheduled for December 1st in North Carolina. 23XI and FRM are the only two organizations out of 15 that refused to sign charter extensions, which are fundamental to NASCAR’s business model. Without them, both teams claim they would surely go bankrupt.

“Today’s decision has only reaffirmed my clients’ unwavering pursuit of a fairer and more equitable sport,” said Jeffrey Kessler, attorney for 23XI/FRM. “Their determination remains strong as we continue our efforts for a resolution that benefits everyone: teams, drivers, employees, partners, and fans.”

Jeffrey Kessler, attorney for 23XI/FRM

NASCAR indicated that it is still awaiting an agreement. The season concludes with Sunday’s championship final in Phoenix, and Hamlin is one of the four drivers eligible for the Cup title. “We respect the Court’s decision, although we respectfully disagree with its legal reasoning,” NASCAR said. “Our priority remains resolving this matter quickly so that all parties can focus on Championship weekend and continue to grow the sport. If a resolution is not reached, we intend to appeal the decision in due course.”