NASCAR attorney claims 23XI-FRM can't reap charter benefits while pursuing antitrust allegations

NASCAR attorney Chris Yates is pushing back against 23XI Racing and Front Row Motorsports (FRM), claiming that both teams should not be allowed to benefit from the sport's charter system while simultaneously making antitrust claims against the organization. The legal battle for charter dispute has been going on between NASCAR and 23XI-FRM since last month.

23XI, which is owned by NBA legend Michael Jordan and JGR veteran Denny Hamlin, and FRM, owned by restaurant entrepreneur Bob Jenkins, have said they will compete as open teams in 2025 if they don’t get the injunction. Even NASCAR’s agreement prohibits them from suing the governing body.

Also, an open team doesn’t have a guaranteed spot in every weekend’s race, and they also don’t receive the same amount of revenue as charted teams.

FOX Sports journalist Bob Pockrass recently shared the latest update on the lawsuit from Monday’s injunction hearing. According to Pockrass, CEO Jim France’s attorney, Chris Yates, outside court, said that while pursuing antitrust allegations, 23XI and FRM can’t enjoy the perks of being a charter team, including the 50 percent Cup racing's TV revenue.

Here's what Yates said, as reported by Pockrass:

“Teams can't enjoy the benefits of being a charter team — which he said includes about 50 percent of NASCAR's television revenues going to Cup teams — while making antitrust claims.”

23XI and FRM drivers and their sponsors could also potentially leave if they are not allowed to run as charter teams.

It's the most sensitive matter in the antitrust lawsuit filed by 23XI-FRM against the sport and its CEO Jim France in federal court in North Carolina. The lawsuit claimed sports charter agreement and its monopolistic practice violate antitrust laws.

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Chris Yates comments about 23XI Racing’s options outside the NASCAR

Christopher Yates, of Latham & Watkins LLP, who is representing Jim France, stated that 23XI Racing co-owner Michael Jordan has multiple options outside Cup racing if they lose a lawsuit.

“They could invest in NASCAR, IndyCar, buy another NBA team, but they chose to invest in NASCAR,” Yates said, as quoted by FOX Sports.

Outside the courtroom, Jordan commented about winning the Cup Championship this weekend with Tyler Reddick amid the legal battle.

Jordan said (via FOX Sports):

“I've been in situations of disparity — the race team is going to focus on what they have to do this weekend, which I expect them to. I think Jeffrey did an unbelievable job today. I put all my cards on the table. I think we did a good job of that. But I'm looking forward to winning a championship this weekend."

During a 70-minute preliminary injunction hearing on Monday, lawyers of 23XI-FRM and the sport argued, and the next hearing is scheduled for Friday, November 8.