A federal judge dealt a major blow to NASCAR on Tuesday, dismissing the counter-lawsuit it had filed against teams 23XI Racing and Front Row Motorsports.
This decision simplifies the massive antitrust case, which is still set to go to trial in December, by putting the spotlight squarely back on whether NASCAR is running an illegal monopoly.
U.S. District Judge Kenneth Bell sided with 23XI and Front Row, tossing out NASCAR’s claim that 23XI co-owner Curtis Polk somehow “illegally colluded” with other teams during those tense charter negotiations.
The judge essentially said the teams did not engage in “unreasonable restraint of trade.” The ruling guts a part of NASCAR’s defense, which had tried to paint the teams’ joint efforts to get a better deal as an anticompetitive scheme.
NASCAR had argued that a team owners council meeting boycott in 2023, coupled with the teams sticking together during charter talks, amounted to an “illegal cartel” that harmed media rights negotiations.
However, Judge Bell determined the boycott was just a negotiating tactic that “appeared to have little impact.”
NASCAR itself went ahead and started one-on-one negotiations with teams soon after. The judge pointed out that these individual meetings worked, as 13 out of 15 organizations ultimately signed the new 2025 charter agreement.
Jeffrey Kessler, the lawyer representing 23XI and Front Row, celebrated the win, saying the decision “only reaffirmed my clients’ unwavering pursuit of a more fair and equitable sport.” He stressed that their focus remains strong on finding a final resolution.
As for NASCAR legal team, they were disappointed, stating they “respect the Court’s decision, though we respectfully disagree with its legal reasoning.” They added that their priority is to resolve the matter quickly and that they plan to appeal the ruling later if a settlement can’t be reached.
The victory is a huge boost for the two organizations – including the 23XI team co-owned by Michael Jordan and championship contender Denny Hamlin. The Dec. 1 trial will now exclusively address the teams’ original complaint that NASCAR operates as an unlawful monopoly.
The core fight is over the charter system, which is vital because it guarantees a spot in races and a chunk of the weekly revenue. 23XI and Front Row are the only two teams that refused to sign the extension, arguing the current system prevents them from building long-term value, potentially risking their entire business without those chartered entries.
While Judge Bell has yet to rule on two other motions – including the team’s request to define the market as “premier stock-car racing” – this latest decision simplifies the road to trial. The timing is notable, as the ruling lands just days before Hamlin competes for the Cup Series title at the season finale in Phoenix.
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