Steve Phelps says NASCAR teams earn significantly more under the new charter agreement
Late last year, 23XI Racing and Front Row Motorsports opened an antitrust lawsuit against NASCAR. The teams have claimed that NASCAR acted monopolistic amid a new charter agreement following years of negotiations.
NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
13 of 15 teams signed the new charter agreement beginning with the 2025 season. Charter teams earn significantly more than non-chartered (Open) teams.
However, a line in the new agreement prevented teams from suing NASCAR. Thus, 23XI and Front Row elected not to sign.
Each of the two teams currently own three charters. Initially, the courts allowed both teams to race as if they signed the new charter agreement, while the lawsuit is ongoing. Meaning, they earn the same amount of teams that signed the new charter agreement despite not signing.
NASCAR appealed that ruling. And recently, they won the appeal. NASCAR could claim all 6 charters, forcing the teams to run as Open teams while the lawsuit is ongoing.
NASCAR wins court appeal to claim charters from 23XI / FRM
23XI and FRM are set for the final appeal of that ruling. Meanwhile, the original antitrust lawsuit is ongoing. The trial is expected to begin in December.
NASCAR has issued very few comments on the lawsuit. However, this week, Steve Phelps, the commissioner of NASCAR commented on the ongoing lawsuit…
LONG POND, PENNSYLVANIA – JUNE 26: Bubba Wallace, driver of the #23 Root Insurance Toyota, and NASCAR President Steve Phelps share a laugh on the grid prior to the NASCAR Cup Series Pocono Organics CBD 325 at Pocono Raceway on June 26, 2021 in Long Pond, Pennsylvania. (Photo by James Gilbert/Getty Images)
Steve Phelps comments on the NASCAR lawsuit
“So the suit was brought by 23XI which is the company that the majority owner is Michael Jordan,” told CNBC.
“Minority owner is Denny Hamlin, who’s one of our drivers. Very successful driver. Won 58 cup races. He’s a tremendous talent.”
“Listen, I’m not sure why they decided to bring a suit. 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. We believe –”
The teams have stated that NASCAR has shown monopolistic behavior.
“Yes. 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%.”
“That’s a significant increase. If you have, in my opinion, if you’re a monopolist, right, and you have that monopolist behavior, you’re not going to increase by 73% you’re actually going to go backwards, because you have that ability to do it.”
He added, “For us, that’s not what we wanted to do, because we need healthy race teams. Healthy race teams puts on better racing.”
Recently, courts requested financial information from teams that are not involved in the lawsuit. 12 of those teams stated in court that releasing that information to NASCAR would be “catastrophic”.
All full-time teams to file financial info amid NASCAR lawsuit
23XI Racing Drivers
Here is the list of full-time drivers for 23XI Racing.
#23
Bubba Wallace
#45
Tyler Reddick
#35
Riley Herbst
Front Row Motorsports Drivers
Here is the list of full-time drivers for Front Row Motorsports.
#4
Noah Gragson
#34
Todd Gilliland
#38
Zane Smith
NASCAR notes that 23XI Racing and Front Row Motorsports are trying to “blow-up the Charter system”
Links
NASCAR | 23XI Racing | Front Row Motorsports