23XI Racing, co-owned by Michael Jordan, Denny Hamlin, and Curtis Polk, and Front Row Motorsports have filed a lawsuit against NASCAR. Speaking out on the lawsuit, which was filed earlier this week, antitrust lawyer Jeffrey Kessler has labeled NASCAR as "the poster child for an illegal monopoly" and accused it of exploiting its dominance to marginalize racing teams.
The teams released a joint statement earlier this week, explaining:
"We share a passion for racing, the thrill of competition, and winning. Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans."
The crux of the lawsuit hinges on NASCAR's refusal to grant permanent charters, a longstanding contentious issue for teams. The lawsuit comes after 23XI Racing and Front Row Motorsports declined to sign NASCAR's final charter proposal during the Atlanta Motor Speedway event.
Historically, NASCAR's “monopolistic” tendencies have surfaced in notable incidents, such as in 1961 when founder Bill France Sr. banned Curtis Turner and Tim Flock, asserting control in ways critics argue set a precedent for future practices.
Another example is the 1969 Talladega Superspeedway race boycott, led by the Professional Drivers Association, protesting unsafe conditions dismissed by the NASCAR hierarchy.
Kessler argued:
"NASCAR is the poster child for being an illegal monopoly. It is the only premier stock-car racing circuit in the country, maybe in the world. It got that position not by being the best, or by investing money, or by having the best thing out there that nobody competes with.
"It got there by acquiring its competitors, tying up the racetracks, going to all the teams who are independent contractors and saying, 'you can't go race at anybody else's races,' and imposing restrictions on the cars where the teams can't even take their Next-Gen car and put it in another race. All of that gives them this monopoly power."
Responding to questions about whether the France family’s ownership of the racing series breaking the law, Kessler added:
"Not by itself, but is the motivating factor for why it (NASCAR) has been run this way.
"When you look at what the France family has done, they run it like it's their own personal fiefdom, where all the revenues and profits and TV deals and money should mostly go to them. The teams and drivers end up getting just enough economic scraps to survive, and some of them can't survive."
The full interview was cut from the episode replay in the SiriusXM app pic.twitter.com/C1JdLa6btk
— Matt Weaver (@MattWeaverRA) October 3, 2024
Should the lawsuit proceed favorably for the plaintiffs, it could herald essential transformations within NASCAR's operational and financial frameworks.
