KANSAS CITY, Kan. — Denny Hamlin expressed confidence on Saturday in the ongoing antitrust lawsuit initiated by his team, 23XI Racing, and Front Row Motorsports, against NASCAR. The suit, which has accused NASCAR of antitrust violations, remains a significant issue as these teams challenge the stock car series over charter agreements.
Hamlin’s remarks came a day after a federal appellate panel suggested it might reverse an injunction that currently allows 23XI and Front Row to compete as chartered entities while the legal battle continues. Following his 14th place qualification for Sunday’s race at Kansas Speedway, Hamlin noted that although he didn’t follow the proceedings live, he remains optimistic.
The teams filed the lawsuit on October 2nd in North Carolina’s Western District, arguing that NASCAR compelled them into unfavorable charter agreements, akin to restrictive franchise deals, which stifle their financial competitiveness. Among the handful of teams with charters, 23XI and Front Row notably declined to sign the agreements in September.
The extension of these charters is valid until 2031, coincide with the current media rights agreement, offering key advantages such as ensuring 36 out of 40 race spots for charter owners. Overturning the injunction would effectively reclassify 23XI and Front Row as open teams, requiring them to qualify for every Cup Series race. Notably, 23XI had four cars compete at Kansas, while Front Row had three.
Hamlin asserted, “the judges haven’t announced any decision,” suggesting no immediate changes would be made until then.
NASCAR’s attorney, Chris Yates, argued that the court-ordered injunction creates an inconvenient partnership with teams unwilling to collaborate, impacting other teams financially due to reduced earnings. He further contended that the teams should not reap the benefits of the charter system they are challenging.
Attorney Jeffrey Kessler, representing 23XI and Front Row, countered that reversing the injunction would severely damage the teams, risking the loss of drivers and sponsors. He warned that it would be highly disruptive to alter the arrangement mid-season.
A trial is scheduled for December, and Judge Steven Agee has recommended the involved parties to pursue mediation, as previously directed by a lower court, although a resolution through negotiation seems unlikely at this stage.
Yates firmly stated, “We’re not going to rewrite the charter,” emphasizing their stance before the judges.