NASCAR’s revenue-sharing charter system is at risk of being dismantled following a counterclaim filed Wednesday against 23XI Racing and Front Row Motorsports. The filing specifically targets Curtis Polk, longtime business manager for Michael Jordan, who co-owns 23XI Racing.
The dispute stems from more than two years of negotiations over new charter agreements, NASCAR’s version of a franchise model. In its 30-page filing, NASCAR accuses Polk of “willfully” violating antitrust laws by coordinating what it describes as anticompetitive collective action related to the latest charter agreements.
Out of the 15 teams presented with the new agreements last September, 23XI and Front Row were the only two that refused to sign. The offers were made just 48 hours before the start of NASCAR’s playoffs under a take-it-or-leave-it approach.
Charters, which were first introduced in 2016 and have since been extended twice, currently guarantee 36 of the 40 starting spots in each Cup Series race. The most recent extension aligns with NASCAR’s seven-year media rights deal and includes additional financial benefits. However, 23XI and Front Row rejected the terms and filed a lawsuit, arguing that NASCAR and the France family operate as a monopoly.
So far, the teams have won an early legal battle, with a court ruling recognizing them as chartered organizations for the 2025 season. NASCAR has appealed a decision to dismiss the case as the dispute continues.
Attorney Jeffrey Kessler, representing 23XI and Front Row, dismissed NASCAR’s counterclaim, stating, “Today’s counterclaim by NASCAR is a meritless distraction and a desperate attempt to shift attention away from its own unlawful, monopolistic actions. NASCAR agreed to the joint negotiations that they now attack. When those joint negotiations failed, they used individual negotiations to impose their charter terms, which most of the teams decided they had no choice but to accept.”