NASCAR: Phelps Seeks Agreement in Legal Dispute with Teams, Urges Solution

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AVONDALE, Arizona – NASCAR Commissioner Steve Phelps said Friday that “we are doing everything we can” to resolve the federal antitrust lawsuit with the two teams suing the racing series. Phelps read a statement that lasted more than six minutes and did not take questions about the litigation between 23XI Racing, owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins. Both sides recently participated in two days of mediation without reaching a resolution, but NASCAR hoped that continued conversations would lead to an agreement that it could announce before the season finale, which will decide the championship on Sunday.

NASCAR is fully aligned with our racing team partners who have filed statements in the hope of ending this litigation. We are doing everything we can. I am doing everything I can as both a fan and commissioner of this sport that I have loved since I was 5 years old. While two of the 15 teams may not share that view and seem determined to an unfortunate court battle, I hope we can all agree that our races are as good as ever and we care about how we serve our fans, especially as we look forward to culminating our season by celebrating the new champions in all our national series.

Steve Phelps, NASCAR Commissioner
This weekend, NASCAR will crown its champions in the Truck Series, the Xfinity Series, and finally, in the Cup Series final on Sunday. Hamlin is one of the four drivers eligible for the title. The lawsuit was filed a year ago by 23XI Racing, co-owned by NBA Hall of Famer Jordan, and three-time Daytona 500 winner Hamlin. Front Row Racing, a much smaller team, aligned with 23XI, and they were the only two organizations out of 15 that did not sign extensions last year on the new franchise agreements. Franchise agreements were presented to the teams at the beginning of the 2024 playoffs with a deadline for them to sign. This followed more than two years of tense negotiations over the franchises, which are the core of NASCAR’s business model, as they guarantee income and access to weekly races. 23XI and Front Row would probably go bankrupt without them and are running this season without a franchise, which entails a significant reduction in prize money. Other teams have asked for an agreement to move forward, but mediation sessions and private negotiations have not worked. The trial is scheduled for December 1st. The U.S. District Judge Kenneth Bell dismissed this week NASCAR’s counterclaim against Curtis Polk, Jordan’s longtime business manager and one of the owners of 23XI. NASCAR has routinely declined to discuss the lawsuit, but Phelps made an exception on Friday with his statement.

This is not an antitrust case. The 2025 franchise agreement is an improvement over the 2016 framework.

Steve Phelps, NASCAR Commissioner
Phelps defended the France family, based in Florida, who founded the sport in 1948, supports it financially, and has made it the main motorsport series in the United States. The France family started NASCAR in 1948 using their own resources, courage, and ingenuity. They have taken countless personal and financial risks, investing billions of dollars and countless hours in the growth of this sport to create opportunities for teams to race in front of fans for nearly eight decades. We are proud of what we built for the fans together with the racing teams, especially since the introduction of franchises. We will continue to defend and preserve it. Don’t be mistaken, the lawsuit puts this at risk.
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