NASCAR vs. 23XI, FRM lawsuit: Jeffrey Kessler releases statement after judge dismisses counterclaim

Jeffrey Kessler, the attorney for 23XI Racing and Front Row Motorsports (FRM), has shared his reaction to NASCAR’s counterclaim against the team being dismissed. On Tuesday afternoon, Kessler said the decision “reaffirmed” 23XI and Front Row’s pursuit of fairness in NASCAR.

“We are thankful for Judge Bell’s thoughtful consideration of the facts and the law, and his decision to grant Summary Judgment in my clients’ favor against the NASCAR counterclaim,” Kessler said. “Today’s decision has only reaffirmed my clients’ unwavering pursuit of a more fair and equitable sport. Their determination remains strong as we continue our efforts for a resolution that benefits everyone – teams, drivers, employees, partners, and fans.

Judge Kenneth Bell dismissed the counterclaim on Tuesday afternoon. Per Matt Weaver of Motorsport, the judge said, “The very idea of competition itself was not harmed by the teams collectively negotiating with the Sanctioning Body.”

NACAR alleged antitrust violations against 23XI and FRM over what it argued was an illegal “cartel conspiracy” to have “horizontal competitors” jointly negotiate. Bell believes there is no evidence of antitrust injury to competition, and NASCAR’s own experts could not prove any evidence to joint negotiations resulted in an increase to teams when it comes to charter revenue terms.

What’s the next move for 23XI and FRM?

“The evidence here establishes that not only were individual negotiations ‘available,’ but NASCAR had such negotiations regularly during the negotiation period,” Bell wrote in his order. “And, those individual negotiations achieved concrete results, including the final 2025 Charter agreement that was signed by 13 teams acting individually (and contrary to the supposed “joint agreement”).”

Both sides spent two days in settlement talks last week, and NASCAR is hoping a settlement gets done soon, as the championship races take place this weekend. The trial is set for Dec. 1, and the judge will hear arguments on several pretrial motions on Nov. 12, according to Bob Pockrass of Fox Sports.

23XI and FRM filed an antitrust lawsuit against NASCAR and Chairman Jim France on Oct. 2, 2024. 23XI Racing is co-owned by NASCAR driver Denny Hamlin and NBA legend Michael Jordan, who explained why he filed the lawsuit against NASCAR.

“I did it for the smaller teams as well. It’s not just me. I think everybody should have an opportunity to be successful in any business,” he told Fox Sports on Oct. 6, 2024. “My voice is saying that it hasn’t been happening. … Hopefully we [at both sides] can come to our senses and figure out something that can make sense for everybody.”