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In a dramatic turn of events, two teams from the premier NASCAR Cup Series have taken legal action against the organization itself. Accusations of monopolistic practices and exploitation have been hurled at NASCAR by 23XI and Front Row Motorsports, two of its leading teams. The ongoing litigation has cast a shadow over the future of the Cup Series and the sport as a whole.
The lawsuit filed by 23XI and Front Row Motorsports alleges that NASCAR, under the control of the France family, has unlawfully monopolized the premier stock car racing scene to their personal advantage, while sidelining the interests of the teams, fans, sponsors, and broadcasters. The crux of the teams’ argument hinges on the claim that NASCAR has been stifling competition by discouraging teams from participating in races outside of the NASCAR umbrella, and by absorbing other American stock car series.
The issue gained momentum following a dispute over NASCAR’s charter system, which was implemented in 2016. These charters are essentially guarantees that secure a spot for drivers in every Cup Series race, provided they meet certain NASCAR-defined criteria. The charters possess an intrinsic value and thus, attract outside investment. Investors can recoup their investment if a charter is sold.
However, 23XI and Front Row Motorsports declined to sign the charter extension agreement in 2024, despite experiencing significant pressure from NASCAR. Their refusal was rooted in their belief that NASCAR wasn’t sufficiently benefiting the teams. While the lawsuit remains unresolved, the teams have been granted an injunction that allows them to operate as chartered teams in 2025, until a verdict is reached.
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