LAS VEGAS, NEVADA - OCTOBER 18: A detail view of the 23XI Racing logo at Las Vegas Motor Speedway on October 18, 2024 in Las Vegas, Nevada. (Photo by Meg Oliphant/Getty Images) | Getty Images
LAS VEGAS, NEVADA - OCTOBER 18: A detail view of the 23XI Racing logo at Las Vegas Motor Speedway on October 18, 2024 in Las Vegas, Nevada. (Photo by Meg Oliphant/Getty Images) | Getty Images

NASCAR counter sues 23XI Racing and Front Row Motorsports UPDATES

UPDATE 3: The two teams suing NASCAR over antitrust allegations said Wednesday in a filing that a countersuit against 23XI Racing, Front Row Motorsports and Michael Jordan’s manager is “an act of desperation” and asked that it be dismissed.

Wednesday’s filing claims that NASCAR’s counterclaim is “retaliatory” and “does not allege the facts necessary to state a claim.”

Associated Press

UPDATE 2: FRM and 23XI filed their response to NASCAR’s appeal of the December injunction ruling that requires NASCAR to allow FRM and 23XI to race as chartered teams in 2025 with each having three charters that includes one each of them purchased in the offseason from Stewart-Haas Racing.

A hearing on the appeal is set for May 9 in the U.S. Court of Appeals in Richmond. A decision would likely come weeks later. A trial in the case is set for Dec. 1, so the hope is that any disputes won’t extend into 2026.

The teams argue that they deserve the injunction because they likely will win the case — that the Cup Series requires elite teams — and 2025 charter agreement doesn’t provide them the economic model to be elite.

“The charters provide the teams with much less revenue and less favorable terms than would prevail in a market unrestrained by NASCAR’s unlawful monopsony,” the teams’ brief states.

FOX Sports

 

UPDATE: Jeffrey Kessler, the attorney for the teams, issued the following statement:

“Today’s counterclaim by NASCAR is a meritless distraction and a desperate attempt to shift attention away from its own unlawful, monopolistic actions.

NASCAR agreed to the joint negotiations that they now attack. When those joint negotiations failed, they used individual negotiations to impose their charter terms, which most of the teams decided they had no choice but to accept.

My clients’ lawsuit has always been about transforming NASCAR into a more competitive and fair sport for the benefit of drivers, fans, sponsors and teams because of their love of the sport. Every major sport goes through a transition to competition when
antitrust claims are asserted, and that moment has come for NASCAR.

Today’s baseless filing changes nothing. We are confident in the strength of our case and look forward to presenting it at trial.”

ORIGINAL POST: NASCAR on Wednesday filed a counterclaim against Michael Jordan-owned 23XI Racing and Front Row Motorsports for “willfully” violating antitrust laws by orchestrating anticompetitive collective conduct in connection with the most recent charter agreements.

23XI and Front Row were the only two teams out of 15 that refused to sign the new agreements, which were presented to the teams last September in a take-it-or-leave-it offer a mere 48 hours before the start of NASCAR’s playoffs.

In the counterclaim filed Wednesday — which names Curtis Polk, Jordan’s longtime agent, as a defendant — NASCAR said “the undisputed reality is that it is 23XI and FRM, led by 23XI’s owner and sports agent Curtis Polk, that willfully violated the antitrust laws by orchestrating anticompetitive collective conduct in connection with the terms of the 2025 Charter Agreements.”

“This is not the first time that 23XI and FRM have sought to impose their viewpoints, and those of their counsel, on the racing teams writ large,” NASCAR continued. “And it is truly ironic that in trying to blow-up the Charter system, 23XI and FRM have sought to weaponize the antitrust laws to achieve their goals.”

Associated Press

See a copy of the suit at Kickin the Tires.