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NASCAR has submitted a court document calling for the "meritless suit" against it to be rejected. Two teams have accused the organization and its CEO Jim France of engaging in monopolistic practices.
Earlier this month, 23XI Racing and Front Row Motorsports (FRM), filed an antitrust lawsuit in North Carolina and later submitted an injunction, asking for access to important documents from NASCAR and some of its executives. The issue started when the two teams did not sign the 2025 charter agreement, which guarantees teams a spot in NASCAR races, within the given deadline.
In a 22-page court statement, NASCAR has called the teams' claims unfounded and an attempt to get better contract terms.
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"Plaintiffs have filed a meritless suit against NASCAR alleging baseless antitrust claims in order to obtain commercial agreements they previously rejected, and to attempt to extort more favorable contract terms," the statement read (via NBC).
Jeffrey Kessler, the lawyer representing the two teams, has argued that NASCAR’s dominance comes from restrictive deals that hurt competition. The teams are reportedly seeking triple damages for unfair terms since the 2016 charter agreement. They also want permission to keep racing as part of NASCAR’s chartered system while the case is resolved. However, NASCAR says the teams can still race without charters.
If the court does not allow the injunction, 23XI and FRM would have race as open teams in 2025 and may lose big revenue opportunities, especially for events like the Daytona 500. A hearing for the preliminary injunction is set for November 4.
NASCAR cuts to 32 chartered teams for the next season
NASCAR is now planning the 2025 season with 32 chartered teams instead of 36 because 23XI and FRM missed the signing deadline.
The money that would have gone to 23XI Racing and Front Row Motorsports is now planned to be given as more prize money and special awards to the teams that signed the 2025 charter, as well as to open teams competing for those prizes.
"The deadline for plaintiffs to sign 2025 charter agreements expired weeks ago, and NASCAR has taken steps, consistent with its contractual obligations to other charter teams, to plan for a season with only 32 charters," the statement continued.
The charter system, which started in 2016 and expires after this season, ensures that 36 teams can enter the Cup races and get the prize money. According to some teams, it is not profitable. The lawsuit also claims that only eight teams, out of the 19 original charter owners in 2016, are still in the sport.
After long negotiations, NASCAR gave its final offer in early September this year. Thirteen teams signed, but many claimed they felt pressured to do so. However, 23XI Racing, co-owned by NBA legend Michael Jordan and Denny Hamlin, and Front Row Motorsports, refused to sign the agreement.
