Legal Showdown: NASCAR Challenged in Antitrust Lawsuit by 23XI Racing

https://icaro.icaromediagroup.com/system/images/photos/16365330/original/open-uri20241005-18-1p2y787?1728171700
ICARO Media Group
News
05/10/2024 23h35

### NASCAR Faces Significant Legal Challenge as 23XI Racing Files Antitrust Lawsuit

TALLADEGA, Ala. - As Denny Hamlin navigated the adrenaline-filled environment of NASCAR, his focus was briefly diverted by a significant development off the track. This week, his race team, 23XI Racing, co-owned with basketball legend Michael Jordan, filed an antitrust lawsuit against NASCAR. The lawsuit, filed in conjunction with Front Row Motorsports, accuses NASCAR of operating as a monopoly.

Hamlin’s fiancée, Jordan Fish, sent him a clip from "Moneyball" that he found to be quite relatable as he processed the news. Despite the legal turmoil, the general reaction has been positive, with many supporting the challenge against the status quo. Hamlin, who also drives for Joe Gibbs Racing, shared that the lawsuit had been in the works for a considerable time, providing him a measure of relief now that it was public.

The NASCAR community, while still coming to terms with the lawsuit, is grappling with what it could mean for the future of the sport. RFK Racing's Brad Keselowski acknowledged its significance, calling it the "biggest story in the sport." Meanwhile, team owner Richard Childress revealed that teams were pressured into signing new agreements, echoing claims made in the lawsuit.

Childress highlighted the lack of choice, stating that not signing would mean losing their charters. He also suggested that NASCAR's monopolistic control forces teams to adhere strictly to its regulations if they wish to compete.

NASCAR has so far declined to comment on the lawsuit, but a court filing indicated that 23XI and Front Row will seek a preliminary injunction next week, requiring NASCAR to respond within two weeks. This legal battle is being closely watched within the NASCAR community.

Prominent drivers are tuned in, with Team Penske's Joey Logano emphasizing the unprecedented nature of the situation. Hendrick Motorsports driver William Byron expressed hope that the lawsuit might lead to more prosperity for the sport, viewing it as an opportunity to align NASCAR more closely with other professional sports.

Curtis Polk, co-owner of 23XI, drew attention this week by comparing NASCAR driver salaries unfavorably with those in other sports. According to insiders, driver salaries have fallen significantly since their peak in the mid-2000s. Hendrick driver Kyle Larson echoed this sentiment, pointing out the downward trend in earnings and the desire to reverse it.

23XI drivers Bubba Wallace and Tyler Reddick, along with Front Row driver Michael McDowell, have shown support for their respective team owners. Wallace, the only Black driver in the Cup Series, emphasized his advocacy for change and solidarity with the team. McDowell, who secured the pole position for Sunday's race, pointed out that his team owner Bob Jenkins has had to inject substantial personal funds to keep the team competitive.

When asked if 23XI’s financial commitment is appreciated by NASCAR, Hamlin hesitated for a moment before conceding, "Probably not." This candid response underscores the complex dynamics within the sport as it faces potential upheaval from within.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related