Stewart-Haas Racing Joins Forces with 23XI and Front Row Motorsports in Explosive NASCAR Lawsuit
The fight is heating up. While 23XI Racing and Front Row Motorsports were initially the only holdouts in the 2025 NASCAR charter agreement, they’ve now gained a powerful ally—Stewart-Haas Racing (SHR). The ongoing legal battle against NASCAR and the France family has escalated, and the involvement of Tony Stewart’s team has added significant weight to the lawsuit.
Stewart-Haas Racing Enters the Fray
The controversy started when 23XI Racing—co-owned by NBA legend Michael Jordan—and Front Row Motorsports (FRM) refused to sign the new NASCAR charter deal, claiming monopolistic practices were harming teams financially. The lawsuit, filed in October, centers around allegations of NASCAR’s control over racetracks, denial of permanent charters, and an unfair share of media rights revenue.
Stewart-Haas Racing’s decision to shut down after 16 seasons of top-level competition left them deeply impacted financially. Now, SHR has officially joined the legal battle, supporting the claims made by 23XI and FRM.
Key Allegations Against NASCAR
The plaintiffs argue that NASCAR’s dominance has pushed teams into economic turmoil. SHR President Joe Custer strengthened this position by revealing NASCAR’s promises regarding charter transfers. Custer stated:
“NASCAR officials conveyed to me on more than one occasion that once the Buyers submitted their Transfer Approval Forms and signed their respective Joinder Agreements, NASCAR would promptly provide the necessary approvals to transfer the Charter Agreements to the Buyers.”
This revelation aligns with claims made by FRM’s General Manager Jerry Freeze, who cited a critical phone call with NASCAR President Steve Phelps. According to Freeze, NASCAR had already approved the sale of SHR charters to FRM but was simply waiting for the formal paperwork. Freeze explained:
“On September 11th, 2024, I had a telephone conversation with Steve Phelps. During that conversation, Phelps volunteered that Front Row was already approved for the SHR charter transfer and only needed to submit the customary transfer documents.”
However, Freeze claims NASCAR changed its stance in December, linking charter approval to the lawsuit’s withdrawal. He stated:
“NASCAR made it clear that the reason it was now changing course… is because NASCAR is insisting that we drop the lawsuit and antitrust claims against it as a condition of being approved. NASCAR’s refusal to approve the transfer is causing irreparable harm to Front Row.”
NASCAR’s Counterattack and the Teams’ Response
On December 3rd, NASCAR struck back, asking the court to dismiss the lawsuit, arguing the case stemmed from dissatisfaction with business negotiations that didn’t favor the teams. However, 23XI and FRM have maintained their position, detailing NASCAR’s anti-competitive practices.
They argue that teams are constrained by the Next-Gen car regulations, which only allow components approved by NASCAR. They also noted that racing teams cannot compete in other series without the France family’s approval.
The teams’ legal rejoinder stated:
“The below competitive market terms of the 2025 Charter Agreements… have deprived racing teams of a fair chance to earn a profit.”
They further accused James France—NASCAR’s Chairman—of directing unlawful actions to:
“erect barriers to entry and exclude any competition… using its unlawfully maintained monopsony to impose below-market terms on Plaintiffs and other racing teams.”
What’s Next?
The case is now in the hands of Judge Kenneth Bell, the newly appointed federal judge. With Stewart-Haas Racing now backing the lawsuit, 23XI Racing and Front Row Motorsports have added momentum in their battle against NASCAR.
As this legal showdown intensifies, all eyes are on the next developments. Could this be a turning point for NASCAR’s business structure and its relationship with teams? With Michael Jordan and Tony Stewart’s camps united, the stakes have never been higher.
The battle rages on, and the entire motorsport world is watching.
