CHARLOTTE, N.C. — Front Row Motorsports has alleged that NASCAR attempted to block the acquisition of a significant charter unless the racing team withdrew its ongoing federal lawsuit against the organization. The claim emerged in a recent court document where Front Row stated that their proposed purchase of a charter from Stewart-Haas Racing was contingent on dropping the legal complaint. NASCAR reportedly communicated that it would not sanction the charter transfer without this stipulation.
In a sworn statement, General Manager Jerry Freeze detailed that NASCAR had informed them of this requirement, exacerbating tensions between the parties involved. Back in September, both Front Row and 23XI Racing declined to endorse NASCAR’s final offer regarding a new revenue-sharing agreement, unlike the other 13 teams who accepted the proposal. This led to the two teams taking their grievances to court, with 23XI’s co-owner, Michael Jordan, stating that the lawsuit also represents the interests of all teams in the top-tier motorsports series within the United States.
NASCAR, however, contended that these teams simply disagreed with the recent terms of the charter agreement and has requested the dismissal of the filed lawsuit. Earlier in the week, the case was moved to a new judge following an unfavorable ruling for Front Row and 23XI, who sought a temporary injunction to validate their status as chartered teams for 2025 while the litigation moves forward.
The latest court filing, which contains extensive redactions, outlines what the teams perceive as retaliatory conduct from NASCAR, which they argue has caused them severe and irreversible damage. Both racing teams express a desire to increase their operation from two full-time vehicles to three and have arranged to obtain one charter each from SHR as the latter plans to reduce its fleet from four to one in 2025. While they could still participate in the upcoming season, they would do so as “open” teams, which do not enjoy the same advantages or financial benefits associated with possessing a charter.
According to Freeze’s affidavit, Front Row had completed a purchase agreement with SHR back in April, and NASCAR President Steve Phelps gave verbal confirmation of the agreement in September. However, upon the submission of the required documentation last month, NASCAR began requesting additional details, with a noticeable emphasis on the ongoing lawsuit.
Freeze recounted that on Dec. 5, 2024, NASCAR formally expressed its objections to the transfer of the charter, contradicting Phelps’s prior approval, and explicitly stated that dropping the lawsuit was a prerequisite for approval.
Meanwhile, Steve Lauletta, president of 23XI Racing, countered allegations from NASCAR that implied that the teams were creating “new circumstances” to justify a renewed motion for an injunction, calling these assertions completely unfounded.
Front Row Motorsports is owned by businessman Bob Jenkins, whereas 23XI Racing’s ownership includes retired NBA star Michael Jordan, three-time Daytona 500 champion Denny Hamlin, and longtime advisor Curtis Polk. Historically, NASCAR has managed 36 chartered teams along with four open slots since the initiation of its charter system in 2016. They now intend to transition to a structure featuring 32 chartered teams and eight open spots for the upcoming 2025 season, leading to the rescinding of charter offers to both Front Row and 23XI, effectively placing SHR’s charters in a state of uncertainty.
The teams assert that securing their charter status is crucial under certain contractual obligations with their sponsors and drivers, and racing as open teams next season would result in considerable financial detriments. Lauletta emphasized that 23XI’s primary goal is to compete at the highest standards of stock car racing, which they can only pursue within the NASCAR framework, as it dominates the market for elite-level racing. He remarked, “Our ambition to expand through additional car purchases and enhancing our track presence is essential for this objective.” Lauletta elaborated that operating within NASCAR is not contradictory to striving for excellence, but rather a necessity given NASCAR’s monopoly, which leaves them without an alternative circuit or competitive options at this level.
