NASCAR facing potential exposure in lawsuit with 23XI Racing, Front Row Motorsports

NASCAR “has a serious case on its hands,” regardless of the outcome of the lawsuit against it and CEO Jim France over its new charter system, according to Jeff Gluck of THE ATHLETIC. The lawsuit brought by Basketball HOFer Michael Jordan’s 23XI Racing and Front Row Motorsports claims the new charter system “limits competition by unfairly binding teams to the series, its tracks and its suppliers.” As of now, it “seems hard to believe this situation could actually be decided by the courts.” NASCAR and France would “have to completely open their books, exposing financial records to the public that provide a first-of-their-kind peek behind the curtain of how the money really flows through big-league stock car racing.” Gluck wrote after all, it is “more likely NASCAR and the teams would settle, perhaps addressing some of the key items that were rejected or ignored during the negotiations.” Gluck wrote maybe there is “no pathway to a reasonable settlement other than a few minor concessions that allow both sides to declare victory and move on.” Gluck: “Perhaps it’s enough just to increase transparency on both sides; while we don’t know the closely held details of NASCAR’s finances, we also haven’t seen the teams’ books.” He wrote both parties should “show where the money is going,” and that “might help the sport more than anything.” The longer the lawsuit goes on, the “greater the chance this legal action delivers significant, unprecedented change to NASCAR.” The lawsuit is also brought by the same attorney — Jeffrey Kessler — who is “responsible for changing the landscape in other major professional sports (as well as college athletics) (THE ATHLETIC, 10/2).

BAD TIMING: ESPN.com’s Ryan McGee writes that though the move “has seemed inevitable” ever since Front Row Motorsports and 23XI held out from signing the charter agreement, the timing of the move “was selfish, classless and thoughtless. Wait a damn week.” The lawsuits and press conference came during the week NASCAR and its teams have worked to provide supplies and aid to those impacted by Hurricane Helene. He writes, “Yes, 23XI was one of the teams collecting relief donations.” McGee: “Perhaps those who decided that the NASCAR community should take a break from those efforts and listen to their complaints about revenue sharing and slices of billion-dollar pies should take one of those flights.” He adds he’s “sure the folks who just lost everything would love to express their opinion on it all. I’m also sure that the others in the NASCAR world would, too. But not this week. They’re too busy helping” (ESPN.com, 10/3).