What Is the 23XI Racing Lawsuit?
The 23XI Racing lawsuit is a private federal antitrust case brought by two NASCAR race teams against the sport's own governing body, not a class action or multidistrict litigation. 23XI Racing, co-owned by Michael Jordan and driver Denny Hamlin, and Front Row Motorsports jointly sued the National Association for Stock Car Auto Racing (NASCAR) and its CEO Jim France on October 2, 2024.
The case was filed in the U.S. District Court for the Western District of North Carolina, Charlotte Division, as Case No. 3:24-cv-00886. The teams alleged NASCAR used monopoly and monopsony power over premier stock car racing to impose anticompetitive terms on teams through its charter agreements. The case went to trial on December 1, 2025, and settled ten days later, on December 11, 2025.
“This is a case about the unlawful monopolization of premier stock car racing by the France family in order to enrich themselves at the expense of the premier stock car racing teams that the fans come out to see and that sponsors and broadcasters value.”
Source: 2311 Racing LLC d/b/a 23XI Racing and Front Row Motorsports, Inc. v. National Association for Stock Car Auto Racing, LLC and James France, U.S. District Court for the Western District of North Carolina, Case No. 3:24-cv-00886, Complaint ¶1 (October 2, 2024)
Why Was the 23XI Racing Lawsuit Filed?
The 23XI Racing lawsuit was filed because negotiations over NASCAR's new charter agreement broke down after two years, ending with what the teams called a "take it or leave it" offer. NASCAR set a deadline of midnight on September 6, 2024, for teams to sign the 2025 Charter Agreement, and signing required teams to give up their right to bring antitrust claims against NASCAR.
23XI Racing and Front Row Motorsports refused to sign and filed suit instead, arguing the charter terms were themselves the product of anticompetitive conduct: NASCAR's acquisition of a large share of premier racetracks, exclusivity provisions forced on tracks it does not own, its purchase of rival series ARCA, and non-compete and "Next Gen" car-ownership rules that the complaint says lock teams into NASCAR with no real alternative.
A related dispute over whether the two teams could keep racing as chartered entries during the 2025 season while the case proceeded went through its own injunction fight; a federal judge initially sided with the teams, though a later appellate ruling complicated that outcome before the case ultimately went to trial and settled.
What Harms Does the 23XI Racing Lawsuit Allege?
The 23XI Racing lawsuit alleges three distinct categories of anticompetitive harm, each tied to a specific business practice described in the complaint. NASCAR disputed all of them before the case settled, and no court issued a final ruling on the merits of any claim.
Monopsony Suppression of Team Economics
A monopsony is the buyer-side mirror of a monopoly: a single dominant buyer (here, NASCAR, as the sole purchaser of premier stock car racing teams' services) that can dictate unfavorable terms because sellers have nowhere else to go.
The complaint alleges NASCAR used its position as the only premier stock car racing series to impose charter terms far more economically adverse than teams could negotiate in a genuinely competitive market, with the 2025 Charter Agreement's terms alleged to be even worse than the 2016 agreement it replaced.
Exclusivity and Barrier-to-Entry Dealing
Exclusive dealing is a business arrangement that locks a trading partner, here, racetrack owners, into working only with one company, which can unlawfully block competitors from ever reaching the market.
The complaint alleges NASCAR bought a majority of premier racetracks outright and, for tracks it does not own, imposed exclusivity provisions barring those tracks from hosting any non-NASCAR stock car race, alongside its acquisition of rival series ARCA, conduct the complaint says foreclosed any competing stock car series from ever gaining a foothold.
Forced Antitrust Release
A release, in this context, is a contract clause in which one party gives up its legal right to sue the other over specific past or future conduct.
The complaint alleges the 2025 Charter Agreement's mandatory release provision required teams to waive their antitrust claims against NASCAR as a condition of being allowed to compete, which 23XI Racing and Front Row Motorsports argued was itself a further anticompetitive act rather than an ordinary contract term.
What Is the Current Status of the 23XI Racing Lawsuit?
The current status of the 23XI Racing lawsuit is that it settled on December 11, 2025, after proceeding through trial. The case is closed, and no further rulings are expected absent a new filing.
2311 Racing LLC d/b/a 23XI Racing and Front Row Motorsports, Inc. v. NASCAR and James France
Judge Kenneth D. Bell of the U.S. District Court for the Western District of North Carolina presided over the case from filing through trial. Trial began December 1, 2025, and the parties announced a settlement on December 11, 2025, after the teams had presented their case-in-chief and Michael Jordan himself had testified.
| Court | U.S. District Court, Western District of North Carolina, Charlotte Division |
| Case Number | 3:24-cv-00886 |
| Judge | Kenneth D. Bell |
| Filed | October 2, 2024 |
| Plaintiffs | 2311 Racing LLC d/b/a 23XI Racing, Front Row Motorsports, Inc. |
| Defendants | NASCAR, Jim France |
| Status | Settled December 11, 2025; financial terms confidential |
As part of the settlement, NASCAR agreed to issue an amended charter agreement to existing charter holders that includes a form of "evergreen" charters, subject to mutual agreement, according to the parties' joint statement. Mediator Jeffrey Mishkin assisted the parties in reaching the resolution.
Did NASCAR Settle the 23XI Racing Lawsuit, and for How Much?
Yes. NASCAR, 23XI Racing, and Front Row Motorsports settled the lawsuit on December 11, 2025, but the financial terms were not made public.
The complaint sought treble damages under Section 4 of the Clayton Act, which allows a successful antitrust plaintiff to recover three times its proven actual damages plus attorneys' fees, but the parties' joint statement does not disclose whether any payment was made or in what amount, describing only non-monetary terms like the new charter structure.
Co-owner Denny Hamlin said the settlement gives teams "a foundation to build equity and invest in the future and a stronger voice in the decisions ahead," language that points toward structural and governance changes rather than a disclosed cash payout.
Latest 23XI Racing Lawsuit Updates
23XI racing nascar lawsuit updates track one proceeding from its October 2024 filing through its December 2025 settlement. The case is now closed.
Full 23XI Racing Lawsuit Timeline
NASCAR, 23XI Racing, and Front Row Motorsports Announce a Settlement
The three parties issued a joint statement announcing a mutually agreed settlement after eight days of trial, with NASCAR agreeing to issue an amended charter agreement including a form of "evergreen" charters; the financial terms were not disclosed.
The Case Goes to Trial in Charlotte
Trial opened before Judge Kenneth D. Bell in the Western District of North Carolina, with testimony from NASCAR executives and, later in the trial, Michael Jordan himself before the parties reached a settlement.
23XI Racing and Front Row Score a Pretrial Legal Win
The teams secured a favorable pretrial ruling against NASCAR in the weeks before trial, part of a string of procedural developments that narrowed the issues heading into the December trial.
A Judge Grants 23XI Racing and Front Row an Injunction
A federal judge granted the two teams a preliminary injunction allowing them to compete as chartered entries for the 2025 season while the antitrust case proceeded, citing concerns raised by the teams' sponsors about racing as uncharted "open" teams.
23XI Racing and Front Row Motorsports File the Lawsuit
The two teams jointly filed their antitrust complaint against NASCAR and CEO Jim France in the Western District of North Carolina, alleging monopoly and monopsony conduct across racetrack ownership, exclusivity deals, and the 2025 Charter Agreement's terms.
How Did NASCAR Respond to the 23XI Racing Lawsuit?
NASCAR disputed the lawsuit's antitrust allegations throughout the case before agreeing to the December 2025 settlement, maintaining that its charter system reflected legitimate business terms rather than unlawful monopoly conduct.
NASCAR CEO and chairman Jim France said in the parties' joint settlement statement that the agreement "reaffirms our commitment to preserving and enhancing" the charter system's value, framing the outcome as a continuation of the system NASCAR built with teams and tracks in 2016 rather than an admission of wrongdoing. NASCAR separately filed its own counterclaims against the teams during the litigation, which were not sustained by the time the case settled.
Team Negotiating Committee member Curtis Polk, a 23XI Racing co-owner, said the settlement achieves "significant progress toward the Four Pillars" the teams had sought in negotiations, while Front Row Motorsports owner Bob Jenkins said it gives teams "a real voice in NASCAR's future." Neither side's public statements disclose whether the settlement included a monetary payment.
How Does the 23XI Racing Lawsuit Compare to Other NASCAR Antitrust Cases?
The 23XI Racing lawsuit is the most prominent recent antitrust case against NASCAR, but it is not the first time the sanctioning body's business practices have faced legal challenge, and it should not be confused with unrelated litigation involving individual drivers or teams over separate matters.
NASCAR itself filed counterclaims against 23XI Racing and Front Row Motorsports during this same litigation, alleging the teams' negotiating conduct was itself improper; those counterclaims were a defensive filing inside this same case, Case No. 3:24-cv-00886, not a separate lawsuit. A Fourth Circuit Court of Appeals ruling in 2025 addressed procedural issues in this same case on interlocutory appeal before the trial court proceeded to trial, and should likewise be read as part of this one case's history rather than a distinct piece of litigation.
| Case | Parties | Subject | Status |
|---|---|---|---|
| 23XI Racing/Front Row v. NASCAR (this page) | 23XI Racing, Front Row Motorsports v. NASCAR, Jim France | Antitrust monopoly/monopsony claims over charter terms | Settled December 11, 2025 |
| NASCAR's counterclaims (same case) | NASCAR v. 23XI Racing, Front Row Motorsports | Allegations about the teams' own negotiating conduct | Filed within Case No. 3:24-cv-00886, resolved by the same settlement |
| Fourth Circuit interlocutory appeal (same case) | 23XI Racing/Front Row v. NASCAR | Procedural appeal over the preliminary injunction | Decided in 2025, part of this case's pretrial history |
Frequently Asked Questions
What is the 23XI Racing lawsuit about?
The 23XI Racing lawsuit is a federal antitrust case 23XI Racing and Front Row Motorsports filed against NASCAR and CEO Jim France in October 2024, alleging NASCAR used monopoly and monopsony power over premier stock car racing to impose anticompetitive charter terms on teams.
Is the 23XI Racing lawsuit a class action?
No. The 23XI Racing lawsuit is a private lawsuit brought by two named corporate plaintiffs, not a class action or multidistrict litigation, and there is no recruitable class of claimants to join.
Did NASCAR settle the 23XI Racing lawsuit?
Yes. NASCAR, 23XI Racing, and Front Row Motorsports jointly announced a settlement on December 11, 2025, after eight days of trial, though the financial terms were not disclosed publicly.
Is the 23XI Racing lawsuit still going on?
No. The lawsuit settled on December 11, 2025, and the case is closed as of this writing, with NASCAR agreeing to issue teams an amended charter agreement as part of the resolution.
Who is Michael Jordan's role in the 23XI Racing lawsuit?
Michael Jordan is a co-owner of 23XI Racing, one of the two plaintiff teams, and he personally testified during the December 2025 trial before the parties reached their settlement.
Are NASCAR's counterclaims a separate lawsuit from the 23XI Racing case?
No. NASCAR's counterclaims against 23XI Racing and Front Row Motorsports were filed within this same case, Case No. 3:24-cv-00886, not as a separate lawsuit, and were resolved by the same December 2025 settlement.