NASCAR freezes 23XI's third charter agreement with SHR amid court tussle: Reports

NASCAR has put a hold on 23XI Racing's plan to buy a third charter from Stewart-Haas Racing (SHR) due to the ongoing antitrust lawsuit filed by the team.

The federal antitrust lawsuit filed on October 2 by Michael Jordan and Denny Hamllin's team claims NASCAR is a monopoly. Together with Front Row Motorsports, they claim that NASCAR and CEO Jim France are using unfair methods to block competition in the sport.

23XI and Front Row Motorsports also criticized NASCAR for how the charter negotiations were handled. They stated that both teams had agreed to buy their charters before the new charter agreement was signed.

According to the lawsuit, 23XI Racing intended to buy SHR's last charter and reached an agreement with the team on August 7, 2024. However, the deal is currently on hold because it needs NASCAR’s approval before it can be completed.

"23XI is currently in the process of acquiring a third charter. 23XI and StewartHaas Racing, LLC entered into a purchase agreement on Aug. 7, 2024, but the transaction is still in escrow and requires approval from NASCAR. In the interim, Stewart-Haas Racing, LLC signed NASCAR’s 2025 Charter Agreement,” read page 12 of the lawsuit.

SHR announced in May this year that it would close down and sell three of its four charters. Two of the charters were purchased by Front Row Motorsports and Trackhouse Racing. 23XI Racing was expected to purchase the last charter and there were also reports of Riley Herbst driving the team's third car.

However, these plans fell through when 23XI refused to sign the new charter agreement before the deadline on September 9.

23XI and Front Row Motorsports' lawsuit against NASCAR for anti-competitive practices

The recent lawsuit by 23XI and Front Row Motorsports claims that NASCAR has "anti-competitive and monopolistic control" over the sport.

The teams released a joint statement in which they expressed the need to make the sport fairer and more competitive for everyone. They have also accused NASCAR of not being transparent as well as unfair charter negotiations.

"After more than two years of attempted negotiations over the 2025 agreements, during which NASCAR continually stonewalled and refused to engage constructively, we concluded that litigation was the only way to address the anti-competitive practices of NASCAR and the France family,” the statement said.

They have listed several other unfair actions by NASCAR, such as buying most major racetracks, enforcing exclusive agreements and acquiring the Automobile Racing Club of America (ARCA). Further, they say that the association has stopped the teams from racing in other events and made teams buy parts only from NASCAR-approved suppliers.