NASCAR Antitrust Lawsuit: 23XI-FRM and the sanctioning body face key summary judgment hearing after two days of failed settlement talks

The legal battle between 23XI Racing and Front Row Motorsports, with NASCAR, has hit a significant turning point this week. After two days of private settlement discussions on October 21 and 22, the case has moved ahead after no agreement was reached.

Thursday, October 23's hearing will cover motions for summary judgment, where the judge will decide on the case without a full trial, with challenges to expert witnesses. NASCAR has asked the court for a full ruling in its favor. The teams have also asked for specific rulings on key legal questions.

Fox Sports' Bob Pockrass shared the update from outside the court.

"The summary judgment hearing. NASCAR has asked for a total ruling in its favor; 23XI/FRM have asked for certain aspects of case to be ruled in its favor and expert witness challenges begins soon. Hearing could be lengthy. No phones in courtroom so will be silent for a bit," Pockrass wrote. "TBD if any decisions that could shape case come today," he added.

The teams had filed an antitrust lawsuit in federal court on October 2 last year, in the U.S. District Court for the Western District of North Carolina, and accused NASCAR of monopolistic and anti-competitive practices.

One of the main issues in the case is how the "market" is defined. The 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and FRM, owned by Bob Jenkins, argued the relevant market is "premier stock-car racing," meaning the top-tier NASCAR Cup Series. They claim that NASCAR holds monopoly power by controlling charters (franchises) and also owns the tracks. It also enforces single-source suppliers for cars and blocks tracks and teams from doing business with rival series.

However, NASCAR has argued that the market is broader than the Cup Series racing and that teams have other places to compete. NASCAR points out that 13 of 15 Cup teams accepted its new charter agreement for 2025-2031 and that revenue shares for teams have risen under their agreement.

Are NASCAR teams headed for December trial?

In private settlement talks held earlier this week, both sides exchanged proposals. The settlement conference was overseen by the presiding judge, Kenneth D. Bell, and mediator Jeffrey Mishkin.

The teams hoped that the in-court mediation would resolve the fight. They also met in New York in August with mediator Jeffrey Mishkin, but reached no agreement.

Talks will continue in the courtroom this Thursday with Mishkin. If NASCAR wins its motion during the summary judgment hearing, the entire case could be dismissed or narrowed. Otherwise, the trial will start on the scheduled date, December 1, 2025.

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Edited by Hitesh Nigam