“Neither greed, nor an individual’s bruised ego over his inability to deliver on some promises he made to other Teams, justifies trying to destroy an institution that countless people, including the France family, tracks, Team owners, and drivers have spent decades developing and growing.”
That is one of the more powerful lines in a NASCAR filing full of many memorable statements asking a federal judge to issue summary judgement against 23XI Racing and Front Row Motorsports’ over their antitrust lawsuit against the Sanctioning Body.
“Plaintiffs’ case should come to an end (as the garage wants) so that the focus can return to exciting racing on the track for the remainder of 2025 and planning can begin for a pivotal 2026 season.”
Key points from new filing
That line is important too because much of what NASCAR filed on Friday night are newly written statements from team owners that includes Richard Childress, Joe Gibbs, Rick Hendrick, Brad Keselowski, Carl Long, BJ McLeod, Roger Penske, Gordon Smith, Rick Ware, Cal Wells and Jon Wood.
The general consensus from each team owner is that they want the charter system to continue, and that the legal dispute brings uncertainty to their investment, and that they hope to eventually have charter permanency because the system has been a positive.
Specifically, the motion is asking the judge to effectively rule on the merits of 23XI and FRM’s lawsuit without a jury, which he has the option to do, in the face of overwhelming evidence that it’s without merit.
It’s similar to the motion to dismiss, which NASCAR did not successfully win last year, but comes after an entire summer of fact discovery. In the filing, NASCAR says the judge should effectively rule against the teams for the following reasons:
- The ‘bulk of conduct’ alleging anticompetitive behavior is time-barred and took place between 2016 and 2019 — a reference to the formal acquisition of the ARCA Racing Series and NASCAR’s merger with sister company International Speedway Corporation.
- That 23XI and Front Row previously raced under the ‘release clause’ that prevents them from suing NASCAR and did so under the previous charter agreement that ran from 2016 to 2024.
- NASCAR says 23XI and Front Row have yet to state ‘aggregated damages’ as a result of the alleged anticompetitive behavior.
- NASCAR says the two teams cannot show damages because they aren’t ‘trying to start their own competing racing series.’
- The Sanctioning Body says 23XI specifically entered NASCAR ‘eyes wide open’ and thus could not be blindsided by the fundamentals of a charter system that it now claims to be illegal and anticompetitive
- The teams simply have not shown proof of anticompetitive behavior. ‘Plaintiffs fail to provide any evidence on essential elements under the rule of reason.’
In a response of sorts to 23XI and Front Row’s motion for summary judgment earlier in the week, in which they claim that NASCAR holds market authority over ‘Stock Car teams’ and is thus in a position to damage teams anticompetitively, the Sanctioning Body says that is also too narrow.
“Plaintiffs’ gerrymandered, fail-safe, alleged market should be rejected as a matter of law, even if the testimony of their expert satisfied Rule 702, which it does not.”
Translation: NASCAR is specifically accusing 23XI of entering the Cup Series as a specific ‘Stock Car racing team’ to then say that doing so cause NASCAR to harm them anticompetitively, specifically.
So much of what NASCAR placed in its filings was also about public messaging in the sense that the Sanctioning Body wants the world to see that they believe the charter system at the core of this dispute has been good for teams, even with the 2025-to-2031 extension that every team except 23XI and FRM signed prior to bringing suit.
“Plaintiffs cannot succeed on either of their Sherman Act claims, including their claim that the Charter Agreement itself is an unlawful agreement in restraint of trade. The Charter system has created more than $1.5 billion in equity value for racing teams since it started in 2016. The value of a Charter has increased by approximately $20 million dollars since Plaintiffs 23XI and Front Row reached agreements to purchase Charters from Stewart-Haas Racing last year, and interest in acquiring them remains high. …
“Plaintiffs assert that they are fighting for a “fair” Charter system for all Teams, but they are the only ones that want this lawsuit. Consistent with that, they are seeking over in made-up treble damages to put in their own pockets, irrespective of the impact it has on the sport and the other Teams going forward.”
Statements provided by several NASCAR team owners
Team owner Richard Childress and NASCAR commissioner Steve Phelps
Photo by: Jeffrey Vest / Icon Sportswire via Getty Images
Thus, the statements from each of the team owners that was included in the 121 pages of redacted and unredacted content, which paints a general picture of owners wanting to express support for the charter system and wanting this matter to be resolved before real damage can be done to the sport.
From Rick Hendrick:
“The Charter Agreement is critical to the stability of the NASCAR ecosystem – the teams, the businesses that support us and NASCAR itself. Without this framework in place, I question the long-term viability of the teams, including Hendrick Motorsports, and do not believe we would be able to survive. Undoing what we have collectively negotiated will not only result in immeasurable damage to our sport and our respective businesses, it will, most importantly, hurt the people and families that depend on us for their livelihoods.
Although NASCAR asked me to provide this declaration, I am doing so voluntarily, of my own free will and without bias toward either party. More than anything, I hope the matter is resolved in a way that does not put the sport at risk.”
From Joe Gibbs
“I think that the Charter system has created equity value, though it is imperative that the equity value become permanent. I have repeatedly expressed my strong desire for the Charter system to become permanent in nature, and I continue to hold out hope that will one day be the case. Doing so would, in my view, solidify the financial health and well-being of the Cup teams and the sport as a whole.”
From Roger Penske
“I signed the 2025 Charters because I felt that NASCAR was not going to move any further on their document and it was time for our team to go forward.
“My belief in the value of the NASCAR Charter system is confirmed by the fact that, based
on my experience with NASCAR’s Charter system since 2016, I decided to create a Charter-type system in IndyCar. In 2024, the NTT INDY CAR SERIES and all teams racing full time in IndyCar entered into a charter agreement effective for the 2025 season. The IndyCar Charter has some similarities to the NASCAR Charter and I believe has brought value to our series.
“Attempting to address team concerns with the cost to race in Cup Series races, NASCAR
with feedback from the teams, introduced what is called Next Gen car. Since the Next Gen car began racing in 2022, Team Penske’s Cup Series race car costs have been reduced due to a smaller number of race cars in the fleet and a lesser volume of parts replacements. In addition to cost efficiencies, the Next Gen car has enhanced on-track racing for our team and certainly others.
“I am presenting this declaration with the hope that the parties to the litigation can settle the litigation as soon as possible.”
HYAK Motorsports’ Gordon Smith echoed that last sentiment too.
“I have significant concerns about the current litigation given the uncertainty it brings and the detrimental effect it may have on the future of the sport. More than anything, I hope that the litigation is resolved in a manner that protects the future viability of our incredible sport, and creates greater stability and certainty for all participants and stakeholders.”
If you’re interested in reading all ten statements in their entirety, you can find them HERE.
Reaction from 23XI/FRM attorney Jeffrey Kessler
“The declarations submitted by the various teams are supportive of my clients’ position. My clients are not, and never have been, seeking to eliminate the charter system. They have supported charters because teams cannot survive without them. The declarations from team owners and executives acknowledge this same economic reality. Nor do they excuse NASCAR’s anticompetitive conduct or its unlawful monopoly, points 23XI and Front Row have maintained from the start.
“Many teams have expressed a desire to resolve this matter, a goal my clients share, but NASCAR has yet to demonstrate a similar willingness to engage in meaningful resolution.
“We are confident NASCAR’s summary judgment motion is not going to succeed. This lawsuit has always been about making NASCAR more competitive and fair for the benefit of drivers, sponsors, teams, and fans who love the sport. NASCAR’S new motion changes nothing and we look forward to presenting our case at trial on December 1.”
NASCAR statement
“Today’s filing demonstrates that NASCAR’s charter system has the support of race teams throughout the garage, and that the 23XI Racing and Front Row Motorsports lawsuit is not in the best interests of the sport. This lawsuit is not about antitrust; it is merely an attempt to renegotiate an agreement that was signed and is being honored by all other race teams. Together with our race team partners, we remain committed to delivering the best of stock car racing to our fans every weekend through our championship on Nov. 2, including this Sunday on the ROVAL at Charlotte Motor Speedway.”
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