NASCAR countersues 23XI and Front Row, as well as Michael Jordan’s manager, in dispute over charters

NASCAR’s revenue-sharing charter system is under threat of being disbanded according to a Wednesday counterclaim filed by the stock car series against Michael Jordan-owned 23XI Racing and Front Row Motorsports that singles out Jordan’s longtime business manager.

The contentiousness began after more than two years of negotiations on new charter agreements — NASCAR’s equivalent of a franchise model — and the 30-page filing contends that Jordan business manager Curtis Polk “willfully” violated antitrust laws by orchestrating anticompetitive collective conduct in connection with the most recent charter agreements.

23XI and Front Row were the only two organizations 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.

The charters were fought for by the teams ahead of the 2016 season and twice have been extended. The latest extension is for seven years to match the current media rights deal and guarantee 36 of the 40 spots in each week’s field to the teams that hold them, as well as other financial incentives. 23XI and Front Row refused to sign and sued, alleging NASCAR and the France family that owns the stock car series are a monopoly.

NASCAR already has lost one round in court in which the two teams have been recognized as chartered organizations for the 2025 season as the legal dispute winds through the courts.

What is NASCAR counterclaiming?

In the new counterclaim, Polk is repeatedly singled out as the ringleader against the current charter proposals. NASCAR attorney Christopher Yates went so far as to tell The Associated Press that Polk, who in addition to being Jordan’s business manager is a co-owner of 23XI along with three-time Daytona 500 winner Denny Hamlin, does not understand the NASCAR business model.

“Curtis Polk basically orchestrated and threatened a boycott of one of the qualifying races for a major event and others did not go along with him,” Yates said. “He got other teams to boycott a meeting that was required by the charter. When you have a threatened boycott of qualifying races that are covered by media that’s not a good thing for other race teams, not a good thing when you are trying to collectively grow the sport.”

The qualifying race in question was the 2024 pair of 150-mile duels that set the field for the Daytona 500.

“I don’t think Mr. Polk really understands the sport,” Yates told the AP. “I think he came into it and his view is it should be much more like the NBA or other league sports. But it’s not. No motorsport is like that. He’s done a lot of things that might work in the NBA or might be OK in the NBA but just are not appropriate in NASCAR.”

Who is violating the antitrust act?

NASCAR’s complaint alleges “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.”

“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,” the counterclaim says, alleging Polk’s threats are “attempting to misuse the legal system as a last resort to secure new terms.”

Bob Jenkins, an entrepreneur, owns Front Row Motorsports and joined 23XI in the lawsuit when he declined to sign the 2025 charter agreement last September.

NASCAR’s counterclaim asks for an injunction eliminating guaranteed starting spots for charter teams. NASCAR wants the four combined charters held by 23XI and Front Row before the lawsuit to be returned to NASCAR, and it wants to dissolve the two charters each team purchased ahead of the 2025 season for their own individual expansion.

“There’s a misperception out there that somehow 23IX and Front Row might achieve something that other teams can take advantage of, and that’s just not right,” Yates told the AP. “This is not going to be a renegotiation. NASCAR has no intent of renegotiating the terms of the charter. Front Row and 23XI are threatening the charter system and its continuation, and NASCAR is fine without the charter system.

“The charter system was created at the request of the teams. That was before 23XI and Curtis Polk’s time, I don’t think they understand that history. But if they succeed with their lawsuit and the charter system goes away, that’s OK.”

What do 23XI and Front Row want?

Yates told the AP he’s asked Jeffrey Kessler, the attorney representing 23XI and Front Row, what is it the two teams want and cannot get a straight answer.

“The mere fact that the lawsuit calls the system into question, I really think 23XI and Front Row are being pretty selfish in terms of what they are trying to do, and I don’t think they are taking into account the 32 teams that have signed the charters and think it is a good deal for them,” Yates said. “Do some of them think they should have gotten more? I’m sure. Does NASCAR think it should have gotten more? Absolutely. But NASCAR does not see the charter system as necessary.”

Jordan has said he’s suing NASCAR on behalf of all the teams so that even the smallest ones can receive equal footing in terms of benefits as a participant in the top motorsports league in the United States.

Among the improvements in the 2025 charters is a more equitable revenue share, but missing is the demand that teams wanted the charters to become permanent. NASCAR at its discretion can claw back charters from underperforming teams or eliminate the system completely. Yates said NASCAR has no intention of renegotiating the charters signed in September by 13 organizations, nor did he see a scenario in which NASCAR settles the lawsuit.

“Polk and 23XI’s other owners openly professed that they wanted to change NASCAR’s economic model by demanding more money for the teams from NASCAR media revenues, instead of teams competing against each other,” Yates said. “However, 23XI and FRM did not merely reject the terms of the 2025 Charters. Rather, those teams embarked on a strategy to threaten, coerce, and extort NASCAR into meeting their demands for better contract and financial terms.”

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AP auto racing: https://apnews.com/hub/auto-racing