Judge dismisses NASCAR's
counterclaim, sides with 23XI Racing and Front Row Motorsports
[October 29, 2025]
By JENNA FRYER
A federal judge on Tuesday dismissed NASCAR's counterclaim against
the two teams suing the racing series over antitrust allegations.
U.S. District Judge Kenneth Bell issued the summary judgment in
favor of 23XI Racing and Front Row Motorsports, dismissing NASCAR's
claim that 23XI co-owner Curtis Polk illegally colluded with other
teams during negotiations for new charters.
23XI is also owned by NBA Hall of Famer Michael Jordan and
three-time Daytona 500 winner Denny Hamlin, and Polk is Jordan's
longtime business manager. Polk was also part of a four-member
negotiating team that worked with NASCAR during two-plus years on
the charter agreement signed by 13 of 15 organizations last year.
NASCAR argued in its countersuit that a 2023 boycott of the team
owners council meeting negatively impacted its media rights
negotiations, and that by the 15 organizations unifying for the
charter talks, the teams got a better deal than they could have
gotten if NASCAR negotiated with the teams separately.
Bell found the boycott to be a negotiating tactic “which appeared to
have little impact" because NASCAR started individual negotiations
shortly after.
Bell also found that 23XI and FRM did not participate in
“unreasonable restraint of trade” because NASCAR's individual
meetings with the teams did result in some changes to the charter
agreement, and because all the charter agreements would be the same
among all the teams, that the teams working together in negotiations
would be reasonable.
“The evidence here establishes that not only were individual
negotiations ‘available,’ but NASCAR had such negotiations regularly
during the negotiation period,” Bell wrote in his order. “And, those
individual negotiations achieved concrete results, including the
final 2025 Charter agreement that was signed by 13 teams acting
individually (and contrary to the supposed 'joint agreement')."
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Bell must also rule on two other summary judgment
motions, one by NASCAR asking for a ruling in its favor and one from
23XI and FRM to designate the market as “premier stock-car racing.”
Two days of mediation last week failed to end this
contentious feud and the case is still scheduled for a Dec. 1 trial
date in North Carolina.
23XI and FRM are the only two organizations out of 15 that refused
to sign extensions on charters, which are at the heart of NASCAR’s
business model. A chartered car is guaranteed revenue and access to
weekly races, and without them both teams say they will almost
surely go out of business.
“Today’s decision has only reaffirmed my clients’ unwavering pursuit
of a more fair and equitable sport,” 23XI/FRM attorney Jeffrey
Kessler said in a statement. “Their determination remains strong as
we continue our efforts for a resolution that benefits everyone —
teams, drivers, employees, partners and fans.”
NASCAR indicated in its statement that it is still hopeful of a
settlement. The season ends with Sunday's championship finale at
Phoenix and Hamlin is one of four drivers eligible for the Cup
title.
“We respect the Court’s decision, though we respectfully disagree
with its legal reasoning,” NASCAR said. “Our priority remains
resolving this matter quickly so all parties can focus on
Championship weekend and continuing to grow the sport.
“Should a resolution not be reached, we intend to appeal the
decision at the appropriate time.”
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