FRM And NASCAR Emails Exposed Amid Ongoing Antitrust Lawsuit

The ongoing antitrust lawsuit filed by Front Row Motorsports and 23XI Racing against NASCAR has reportedly brought to light an email exchange between FRM and NASCAR.

These emails, sent between NASCAR President Steve Phelps and FRM General Manager Jerry Freeze, shed light on the contentious points at the heart of this dispute. FRM and 23XI Racing, co-owned by NBA icon Michael Jordan and NASCAR driver Denny Hamlin, allege that NASCAR’s charter practices amount to monopolistic behavior, adversely affecting the competitive balance of the sport.

The dispute escalated after NASCAR proposed a new charter agreement, set to take effect from 2025 to 2031, which was presented to the teams with an exceedingly short acceptance window of only six hours. While 13 out of the 15 teams ultimately agreed to the terms, FRM and 23XI Racing stood firm in declining the proposal. This refusal was based on several unmet conditions, and their subsequent legal challenge is directed against the perceived dominance of NASCAR CEO Jim France’s family within the industry.

The charter system, initially introduced in 2016, was intended to provide stability and assure teams a place in races. However, the latest agreement has been criticized for stifling competition by enforcing provisions that bar teams from participating in racing series not sanctioned by NASCAR.

Journalist Matt Weaver brought the details of the email exchange between Phelps and Freeze to public attention through his X account, providing screenshots that, despite redactions, illustrate the tense negotiations. He posted:

“Email exchange between Front Row Motorsports GM Jerry Freeze and NASCAR president Steve Phelps after the final charter offer was presented to teams.

“The referenced letter was redacted as per the agreement between the two parties last week.”

NASCAR, meanwhile, maintains that teams can still participate as “open” teams without charters, although this would likely have severe financial ramifications, potentially impacting sponsorship and driver engagement. The organization’s legal rebuttal will be presented in court on November 4, where NASCAR will likely argue against continuing the charters during the litigation process.

FRM and 23XI Racing have enlisted the expertise of Jeffrey Kessler, a renowned antitrust attorney with a track record of handling major cases across North America’s four principal sports leagues. NASCAR, defending its practices, is represented by Chris Yates.

The allegations laid out by FRM and 23XI Racing claim that NASCAR and the France family have systematically engaged in actions designed to reinforce their monopoly. These include acquiring racetracks, imposing restrictive agreements on track operations, acquiring the ARCA Menards Series, and monopolizing the supply of Next Gen racing components. As a result, they argue, the balance of power within the sport is skewed to the detriment of teams, drivers, sponsors, and the fan base.