Steve Phelps addresses 'monopolist' accusation from 23XI Racing, Front Row Motorsports lawsuit

The NASCAR lawsuit from 23XI Racing and Front Row Motorsports continues, and that has put a small cloud over the season. Commissioner Steve Phelps recently addressed the ongoing lawsuit between the sanctioning body and two of its Cup Series organizations.

23XI Racing and Front Row believe NASCAR is running its business as a monopolist. They have addressed multiple points of contention, including restrictions on outside events, teams not owning the intellectual property of the Next Gen car, the ownership of race tracks, and other actions from NASCAR as reasons for the monopoly, and the lawsuit.

While speaking to Brian Sullivan of CNBC Sport, Commissioner Phelps was asked directly about the legal battle. He had a few thoughts to share.

“Listen, I’m not sure why they decided to bring a suit,” Phelps said. “And there’s another team called Front Row that also partnered with them on this suit. It is an antitrust case. We don’t believe it’s an antitrust case.”

NASCAR has been accused of being a monopoly by the teams. Phelps denies that accusation.

“And I think what I would say on that, Brian and you know, the viewers, I think, will get this, you know, there was a significant increase in revenue that the teams got – so over the period of time, I think that the increase that we offered the race team contract to contract was an increase of 73%,” Phelps explained. “That’s a significant increase. If you have, in my opinion, if you’re a monopolist, right, and you have that monopsonist behavior, you’re not going to increase by 73% you’re actually going to go backwards, because you have that ability to do it. For us, that’s not what we wanted to do, because we need healthy race teams. Healthy race teams puts on better racing.”

23XI Racing, Front Row take small losses in recent rulings

Between the U.S. District Court and the U.S. Court of Appeals, the two entities presiding over this lawsuit at this time, 23XI Racing and Front Row, have taken a couple of small losses. For starters, the Court of Appeals vacated the preliminary injunctions from the District Court. That means the teams are in danger of losing charter status for 2025.

On top of losing charter status, the teams could face more severe consequences. One of the vacated injunctions allowed 23XI and Front Row to purchase a charter each from Stewart-Haas Racing. Could those charters now be taken from the teams?

This week, the District Court ruled that NASCAR’s counterclaim will move forward. The teams were seeking a motion to dismiss, which was not granted. So, the countersuit from NASCAR will continue on as normal. Neither ruling is based on the merits of 23XI and Front Row’s claims, but they don’t make anything easier for the teams.

Commissioner Steve Phelps is, of course, on NASCAR’s side here. He is going to hold the line. But it is always interesting to hear the thoughts of Phelps and others about this case and the accusations within. 23XI Racing and Front Row Motorsports seem committed to going the distance. Right now, NASCAR and Jim France seem to be committed as well.