Insiders break down what's at stake in NASCAR vs. 23XI, FRM lawsuit beyond charters

Two NASCAR insiders understand that the NASCAR vs. 23XI Racing and Front Row Motorsports (FRM) lawsuit is not just about charters. On The Teardown podcast, Jeff Gluck asked Jordan Bainchi what the teams are going for in the lawsuit other than getting permanent charters.

“Who’s going to cover the trial costs? And the trial costs, by the way, are very expensive,” Bianchi said. “We’re talking upwards of nine figures when you combine everything, if not more than that.

“There’s revenue streams, can teams get more additional revenue? There’s governance in terms of rules… If NASCAR pushes a new rule out there, and it’s going to cost X amount of dollars, should the teams have a say and say, ‘Hey, that’s not something we want to go along with. We’re not okay doing this because it’s too expensive and it doesn’t make sense.’ There’s all sorts of things like that, but at the end of the day, the two big things I think you’re going to hear a lot about is revenues and permanent charters.”

The trial began on Monday and is expected to last 10 days. NASCAR superstar Denny Hamlin is part of the case, as he co-owns 23XI Racing with NBA legend Michael Jordan. Hamlin testified on Monday and broke down in tears when he talked about his path to the NASCAR Cup Series.

What 23XI and FRM are arguing in the lawsuit against NASCAR

23XI and FRM are arguing that it’s unfair for race teams to operate at a loss. Hamlin said it costs $20 million to bring a single car to the track over a 38-race season, not including the overhead expenses such as business operations and driver salary.

Jeffrey Kessler, the attorney for 23XI and FRM, said a NASCAR-commissioned study found 75 percent of teams lost money in 2024 and added that almost $400 million was paid to the France Family Trust in three years. NASCAR is currently run by Jim France, the son of NASCAR founder Bill France Sr.

“What the evidence is going to show is Mr. France ran this for the benefit of his family at the expense of the teams and sport,” Kessler said, per the Associated Press. “So, why would these people do this if you are just going to lose money because NASCAR isn’t giving you a fair deal? Because you love stock car racing, and there’s nowhere else to do it.”