23XI Racing and Front Row can compete in 2025 while suing NASCAR after clause removed from contracts
CHARLOTTE, N.C. (AP) — The two teams suing NASCAR over an antitrust complaint said Saturday they will compete in 2025 as “open teams” after the sanctioning body removed anticompetitive release claims that will allow them to race while the legal process continues.
23XI Racing, the team owned by NBA Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports refused in September to sign take-it-or-leave it revenue sharing offers made by NASCAR just 48 hours before the start of the playoffs.
The teams have filed an antitrust suit alleging NASCAR is “monopolistic bullies” and were denied in federal court last week a request to be recognized as “chartered” teams as the suit continues. A charter is essentially a franchise and guarantees prize money, a spot in the field each week, and other protections.
Both teams insisted they'd compete as “open” teams, which would require them to show up each week and qualify their cars for every race. Open teams also do not receive the same benefits as chartered teams, including a fair cut from the financial purses.
After losing the injunction — which both teams are appealing — Hamlin reversed course and said it was “TBD” if 23XI would be at the season-opening Daytona 500 in February as an open team.
The options for 23XI and Front Row, which is owned by entrepreneur Bob Jenkins, were to either not race or risk a judge dismissing the lawsuit outright because of the claim teams can't sue the sanctioning body.
That language that prohibited NASCAR from being sued was removed in documents delivered to teams on Friday.
In a Saturday morning update from the attorney for the two teams, Jeffrey Kessler said NASCAR “has removed the anticompetitive release requirement in its open agreement" to allow 23XI and Front Row to operate as open teams. Both teams currently have two chartered cars and have purchase agreements with Stewart-Haas Racing for a third charter each.
Those sales have not closed and the existing four charters between 23XI and Front Row expire at the end of the year. Kessler has asked for an expedited December hearing on the appeal as the season begins in February.
Kessler said the teams will enter as “open” teams.
“My clients will continue their appeal to the 4th Circuit to issue an injunction so they can run as chartered teams therefore avoiding irreparable harm,” Kessler said. “Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”
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This story has been corrected to show NASCAR did not come to an agreement but removed a claim.
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