Michael Jordan and Denny Hamlin’s 23XI Racing and FRM file lawsuit against NASCAR - All you need to know

Michael Jordan and Denny Hamlin co-owned 23XI Racing and Front Row Motorsports have filed a federal antitrust lawsuit against NASCAR and CEO Jim France. Both Cup Series teams have complained about the monopolistic practices of the sanctioning body.

The issue revolves around NASCAR's Charter System, which is similar to a franchise. A charter allows owners to field racing teams to compete in all 36 NASCAR Cup Series point-winning races. Also, charter teams earn $1.1 billion per year as television money.

Several teams have been negotiating to extend the original Charter agreement, which was implemented in 2016 and expires on December 31st, 2024. However, NASCAR has denied the request from the teams and has stayed adamant about implementing the new agreement, which will be valid from 2025 to 2031, rather than extending the existing one.

Both 23XI and FRM missed the deadline for the new Charters due to the ongoing disagreement with NASCAR. Their refusal to sign the new agreement could potentially result in both teams losing their charters and a chance to compete in the sport from next season.

Apart from the impact on the motorsport, the financial loss for the team owners, Michael Jordan (23XI), Denny Hamlin (23XI), and Bob Jenkins (Front Row Motorsports) will also be substantial. As such, both teams have jointly sued NASCAR and its leadership for alleged 'anti-competitive and monopolistic practices' in Federal court in the Western District of North Carolina.

The news was shared by senior NASCAR journalist Bob Pockrass on X.

"23XI Racing and Front Row Motorsports have filed a lawsuit on anti-trust grounds against NASCAR in federal court in North Carolina."

Apart from Pockrass, both 23XI Racing and Front Row Motorsports jointly issued a statement (via 23XI Racing's X handle):

"Statement from 23XI and Front Row Motorsports ownership."

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"Everyone who invests in making the sport a success should share fairly in that success" - Denny Hamlin shares his opinion in a joint press release by 23XI Racing and Front Row Motorsports

Denny Hamlin co-owned 23XI Racing is suing NASCAR for its anti-competitive practices. The Joe Gibbs Racing driver shared his opinion in a joint press release issued by 23XI and Front Row Motorsports. He said:

“It’s actually pretty simple in my opinion. When I look around, I see that the best and most competitive sports in the world understand that when teams thrive, fans benefit, and that everyone who invests in making the sport a success should share fairly in that success. With the right changes, we can certainly make that a reality in racing,” Hamlin commented in a press release by 23XI Racing.

As of now, both 23XI and FRM own two charters each, allowing them to field four cars combined in the NASCAR Cup Series.