Two NASCAR racing teams shook up the sport earlier this week when they filed a landmark antitrust case against the sport’s governing body.
23XI Racing and Front Row Motorsports, the only two teams that haven’t signed a charter agreement for next season, filed a joint antitrust lawsuit against NASCAR in federal court Wednesday accusing the France family of operating as a monopoly over stock car racing.
It’s a case that has the potential to upend the current NASCAR structure – and one of the most prominent sports lawyers of all time is heading the case.
Jeffrey Kessler lays out case against ‘monopoly’ NASCAR
Attorney Jeffrey Kessler, who represents 23XI Racing and Front Row Motorsports in this case, has already established his credentials as a champion for labor across North American professional sports.
Kessler led the way in creating NFL free agency as well as advocating for equal pay for women’s soccer and securing name, image and likeness rights for college athletes.
In an interview this week, Kessler laid out the case against NASCAR on an episode of DJD Reloaded.
“What we are arguing here is that NASCAR is a monopoly …” Kessler said. “And it got its monopoly illegally.”
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As Kessler lays out, NASCAR owns the majority of the tracks that host races in the Cup Series, Xfinity Series and Truck Series.
The racing teams in those series aren’t allowed to compete in other leagues, and they are required to compete using NASCAR’s stock car design, equipment and chosen suppliers.
“It engages in all of these restrictions so that the teams have no one else to deal with and the fans have no one else to deal with,” Kessler said.
Kessler slams France family for charter system
Perhaps the biggest issue is the sport’s “charter system,” which was established in 2016 to guarantee a spot in every Cup Series race for teams that pay for it. It also requires them to agree to whatever financial terms are laid out by NASCAR in the charter agreement.
Kessler says over half of the existing teams when the charter system was implemented less than a decade ago are now out of business.
“It’s run basically as the private enterprise of the France family to benefit them,” Kessler said. “(They) used that monopoly to force economic terms on these teams that they barely can afford to be in NASCAR.”
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Where does lawsuit go from here?
NASCAR has yet to publically respond to or comment on the pending lawsuit, though 23XI Racing and Front Row Motorsports are expected to follow up with a preliminary injunction next week.
That would force a response within two weeks from NASCAR, which may look to dismiss the case or settle out of court in order to avoid disclosing its financial terms – which have long been under scrutiny and especially in the wake of the ongoing charter saga.
In the meantime, 23XI Racing co-owner Denny Hamlin and top driver Tyler Reddick remain in the hunt for the first championship of their respective careers.
Both will be on the track Sunday for the YellaWood 500 at Talladega Speedway, while the championship race will take place Nov. 10 at Phoenix Raceway.