Just hours into the first day of the NASCAR trial that began on December 1, Judge Kenneth D. Bell slammed both sides, issuing a warning following opening statements.
The highly publicized antitrust lawsuit between 23XI Racing and Front Row Motorsports versus NASCAR opened in Federal Court in Charlotte North Carolina on Monday. Michael Jordan, co-owner of 23XI Racing, was in attendance.
Both 23XI Racing and Front Row Motorsports chose not to sign the charter agreement last year, leading to the antitrust lawsuit that was filed in October 2024. Both teams accused NASCAR of operating as a non-competitive monopoly.
The plaintiffs believe the charter system and exclusive agreement put limits on commercial pursuits and profit potential.
NASCAR has denied these allegations and insisted its contracts and supplier agreements are in line with what is considered standard practices for any auto racing series.
The charter system began in 2016.
Judge Issues Warning Over Opening Statements
Shortly after the jury was chosen, opening statements were read in the afternoon. The Athletic reported that Judge Bell issued an impassioned warning to both sides for delivering opening statements “riddled with impermissible arguments.” That led Judge Bell to prohibit both sides from presenting any exhibits during opening statements.
“If we can be less confrontational about it next time, maybe you’ll get to do what you want to do,” Bell said, according to The Athletic.
Future Of NASCAR, 23XI And Front Row Motorsports At Stake
The outcome of this trial can dramatically impact the future of NASCAR and both race teams that are involved in the lawsuit.
If the jury rules in favor of 23XI and FRM, they will determine the financial damages, which are capped at actual losses. However, the judge has the power to triple that figure under the law.
The judge will also decide on antitrust remedies, which could encompass various actions—including mandating track sales, modifying or eliminating charters, abandoning the Next Gen car program, or removing exclusivity provisions.
If the jury backs NASCAR, 23XI and FRM would probably have to race as “open” teams in 2026, though this scenario could still happen even with a legal victory, just with lower odds. Both organizations would also face substantial risk of closing within a year, based on any potential appeals.
Michael Jordan’s Courtroom Presence
Michael Jordan is one of the greatest athletes in American sports history and an NBA legend with the Chicago Bulls and Washington Wizards as well as a local hero from his days at the University of North Carolina.
Jordan’s presence in the courtroom brought a high degree of celebrity, which led to several potential jurors being dismissed, according to the Associated Press. One potential juror was dismissed because, “I like Mike” and another admitted to having Michael Jordan posters on his walls as a youngster, according to The AP. Also, another juror admitted they were a North Carolina fan but admitted the football team at UNC is not “doing too well retired.
Jordan shook his head and laughed, according to The AP.
Six men and three women were seated in the trial that is expected to last two weeks.
NASCAR Executives Arrive
NASCAR executives in the courtroom included chairman Jim France and vice chairman Lisa France Kennedy. Both are members of the family that owns NASCAR, an organization that was created by Bill France in 1948.
A NASCAR victory could put 23XI, Front Row and their six combined cars out of business. Their charters — now being held by NASCAR — would likely be sold. The last charter went for $45 million, and NASCAR has indicated there is interest from potential buyers including private equity firms, according to The AP.
A win for the teams would lead to monetary damages and the potential demolition of NASCAR as it is run today. The judge has the power to unravel a monopoly, and nothing is off the table, from ordering a sale of NASCAR to the dismantling of the charter system.
As the start of the trial neared, the acrimony between the two sides have increased. Text exchanges involving NASCAR Commissioner Steve Phelps and NASCAR President Steve O’Donnell have been released including disparaging comments toward another NASCAR team owner, Richard Childress as well as Tony Stewart’s SRX Series, that has since ceased operation.
NASCAR issued a statement on the day’s proceedings shortly after 6 p.m. Eastern Time Monday evening. Below is the statement in its entirety.
“NASCAR has worked tirelessly for nearly eight decades to give fans a thrilling and unforgettable experience, while also ensuring that teams have a contracted revenue stream, guaranteed weekly racing entries that deliver sponsorship dollars, and long-term equity value. That’s what we are in court to protect for the sport, the teams and the fans.
“John E. Stephenson, Jr., who delivered the opening statement for NASCAR, put it succinctly, “why are we here?”
“Here are three key takeaways from NASCAR’s perspective on Day 1 in court:
- The teams asked NASCAR for the charter system, negotiated with NASCAR and agreed to all of its terms, including commitments to be all-in to grow the Cup Series. NASCAR kept its word to the teams, paying every dollar owed to teams over the course of nine years.
- None of the allegedly anticompetitive conduct raised in the lawsuit and court today were raised during the two-plus years of negotiations which consisted of 70 meetings, correspondence and drafts of the 2025 charter agreement. In addition, 23XI’s September 6, 2024 letter to NASCAR explaining why it would not sign the 2025 charter said nothing about alleged anticompetitive conduct—and the same is true of Front Row’s letter to NASCAR explaining why it would not sign the 2025 charter agreement.
- If the system is unfair, anticompetitive and below market, why did 23XI Racing buy a charter not once, not twice, but three times? And why did Front Row Motorsports buy, sell and lease its own charters multiple times? And why did they want them forever? Remember, teams received charters for free and they’re now worth over $45 million.
“It’s important to talk about the truth in this trial so let’s do that – this lawsuit was Curtis Polk and 23XI’s plan from the start. That’s why we are here today.”
Hamlin, a three-time Daytona 500 winner who appeared to be on the way to his first NASCAR Cup Series Championship last month before a late-race caution for a crash dramatically changed the outcome, warned over the weekend that the gloves will be off during the trial.
“Our fans have been brainwashed with (NASCAR’s) talking points for decades,” Hamlin wrote on social media. “Lies are over starting Monday morning. It’s time for the truth. It’s time for change.”
Hamlin broke down in tears minutes into his testimony as the first witness in a case that could upend the venerable stock car series.
Hamlin disclosed to The Associated Press last month that his father is dying, and he said on the stand he was emotional because his dad “is not in great health.”
“We got to when I was about 20 and a decision had to be made, I could keep racing or go out and work for my dad’s trailer business,” Hamlin testified. “If I can’t be successful with Michael as a partner, I knew this was never going to work.”
Hamlin testified it cost $20 million to bring a single car to the track over a 38-race season, not including overhead expenses such as driver salary.
Attorney Jeffrey Kessler, said in his opening statement that fast-food restaurant entrepreneur Bob Jenkins has never turned a profit since starting his Front Row team in 2004.
Front Row won the 2021 Daytona 500.
Kessler said a NASCAR-commissioned study found that 75 percent of teams lost money in 2024.
“So, why would these people do this if you are just going to lose money because NASCAR isn’t giving you a fair deal?” Kessler said. “Because you love stock car racing, and there’s nowhere else to do it.”