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NASCAR’s Monopoly Under Fire: 23XI and Front Row’s Lawsuit Sparks Legal Battle Over Racing’s Power Structure

Simon Monroy by Simon Monroy
February 13, 2025
in Motorsports
Reading Time: 4 mins read
0
NASCAR faces existential threat: 23XI Racing and Front Row Motorsports take on the France family’s empire

Sep 1, 2024; Darlington, South Carolina, USA; NASCAR Cup Series Team 23XI owner Michael Jordan watches a video board as NASCAR Cup Series driver Bubba Wallace (23) races during the Cook Out Southern 500 at Darlington Raceway. Mandatory Credit: Jasen Vinlove-USA TODAY Sports

The power struggle between NASCAR and two of its own teams—23XI Racing and Front Row Motorsports—just took another explosive turn. The antitrust lawsuit filed against NASCAR in December 2024 has now escalated into a full-blown legal battle, with the racing giant scrambling to prove it doesn’t have a monopoly over American stock car racing.

But in a sport where NASCAR owns the tracks, controls the charters, and dictates every major decision, can the France family realistically argue that they’re not the sole gatekeepers of premier stock car racing in the United States?

NASCAR’s Monopoly Accusations: The Court’s Bold Statement

When the court ruled late last year that “NASCAR possesses monopoly power in the relevant market”, it sent shockwaves through the industry.

The accusation? NASCAR’s grip on the charter system and team contracts has made it impossible for rival series to compete, effectively eliminating any free-market balance in premier stock car racing.

23XI Racing and Front Row refused to sign NASCAR’s new charter agreement, citing anti-competitive practices and arguing that NASCAR uses its power to maintain complete control over the sport’s financial structure.

But now, as the legal war heats up, NASCAR is making a desperate attempt to shift the narrative.

NASCAR’s Counterattack: “We Face Competition”

In an urgent filing to the U.S. Court of Appeals, NASCAR is arguing that it has “consistently faced competition”—not from another stock car series, but from Formula 1 and IndyCar.

A tweet from NASCAR reporter Adam Stern highlighted their argument:

“@NASCAR in its brief to the U.S. Court of Appeals tonight says that it has ‘consistently faced competition’ from series like @F1 and @IndyCar for ‘fan attention, talent, and sponsors,’ citing that as being contrary to the allegation that it is a monopoly.”

The claim is clear: NASCAR isn’t a monopoly because fans, drivers, and sponsors can go elsewhere.

But does that argument really hold up?

F1 vs. NASCAR: A Flawed Comparison?

Formula 1 is undoubtedly a global motorsport powerhouse, but its open-wheel format, international circuits, and billionaire-backed teams make it a completely different beast from NASCAR.

Since Liberty Media acquired F1 in 2017, the sport has skyrocketed in U.S. popularity, particularly through Netflix’s Drive to Survive. However, F1’s audience and NASCAR’s traditional fanbase have little overlap—and more importantly, F1 does not provide a realistic alternative for stock car teams looking to race elsewhere.

IndyCar: A Legacy Rival That Never Took Over

IndyCar’s history dates back to 1911, with the legendary Indianapolis 500 standing as one of the most iconic races in the world. But despite its prestige, IndyCar has never been able to match NASCAR’s dominance in the U.S.

Unlike NASCAR, IndyCar’s series isn’t structured around private ownership, and while it has major sponsors, it simply doesn’t generate the same TV ratings, sponsorship dollars, or team value as NASCAR.

The France Family’s Iron Grip on NASCAR

One of the biggest hurdles for NASCAR in defending itself against monopoly accusations is the fact that the France family has controlled the sport since its founding in 1948.

Even today, while personal investments have diversified some aspects of the sport’s business model, the France family still holds ultimate authority over NASCAR’s rules, governance, and financial structure.

The starkest contrast? Formula 1 is owned by Liberty Media, a publicly traded company, while NASCAR remains under private family control.

What’s Next? A Legal Fight That Could Change NASCAR Forever

If the court rules in favor of 23XI Racing and Front Row Motorsports, it could force NASCAR to restructure its entire business model—potentially leading to:

  • A revised charter system that gives teams more autonomy.
  • A shift in media rights and sponsorship deals to allow more equitable revenue sharing.
  • The opening of NASCAR’s governance structure to independent oversight.

With the first qualifying session of the 2025 season just hours away, this lawsuit isn’t just legal drama—it’s a battle for the future of NASCAR itself.

Will the France family maintain their empire, or is this the moment when teams finally gain the power to shape their own destiny?

One thing is certain: This fight is far from over.

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