Billionaire Michael Jordan’s longtime ally acts as NASCAR’s defendant as they countersue 23XI and FRM
23XI Racing, co-owned by billionaire Michael Jordan (as per Celebrity Net Worth), and Front Row Motorsports have encountered a new hurdle in their lawsuit against NASCAR. The case took a fresh turn on Wednesday, March 5, as court filings revealed that NASCAR had countersued 23XI and FRM, naming Jordan's longtime ally, Curtis Polk, as a defendant.
The legal battle between the Cup Series teams and the sanctioning body revolves around the charter system. After refusing to sign the new charter agreement, 23XI and FRM filed an antitrust lawsuit against NASCAR and later won the preliminary injunction, keeping their charters for the 2025 season, with the trial beginning later this year.
On March 5, NASCAR filed a counterclaim against 23XI and FRM, naming Jordan's business partner Curtis Polk as the defendant. The sanctioning body alleged that Polk had "willfully violated anti-trust laws" by orchestrating boycotts during the negotiation period for the new charter agreement.
"The undisputed reality is that it is 23XI and FRM, led by 23XI's owner and sports agent Curtis Polk, that willfully violated the antitrust laws by orchestrating anticompetitive collective conduct in connection with the terms of the 2025 Charter Agreements," an excerpt from NASCAR's counterclaim read [via Daytona Beach News Journal].
NASCAR labeled the teams in the suit as "an illegal cartel," with attorney Chris Yates repeatedly stating that the Race Team Alliance (RTA) acted like a "cartel" during negotiations. The sanctioning body has not named any other teams as defendants, as they signed the charter agreement.
The countersuit targets 23XI Racing, Front Row Motorsports, and Curtis Polk, alleging they attempted to organize boycotts and other tactics that violated antitrust laws. In the recent filing, NASCAR also demanded triple damages and the removal of guaranteed starting positions if 23XI and FRM proceed with the lawsuit.
NASCAR attorney reveals no intent in renegotiations with Michael Jordan's team
NASCAR attorney Chris Yates argued that Michael Jordan and Denny Hamlin’s 23XI Racing, along with Front Row Motorsports, are "misusing" antitrust laws and that their claims of monopolization are baseless. Yates stated that the sanctioning body has no interest in renegotiating the 2025 charter agreement.
"We think 23XI and Front Row are misusing the antitrust laws and alleging baseless monopolization claims in order to try to force a renegotiation. NASCAR has no intent and no interest in renegotiating the terms of the 2025 charter," Yates was quoted as saying by Fox Sports.
"We're not going to let 23XI and Front Row misuse the antitrust laws to try to renegotiate the terms of the charter. That's not going to happen. So I don't see a great path to settlement,but we will participate in the court-ordered mediation process," he added.
Yates also mentioned that teams will get 49% of the revenue from the new $1.1 billion per year media deal under the new charter agreement until 2031. He added that under the previous agreement, teams received 38-40% of the revenue.
The NASCAR attorney also hinted that the sanctioning body doesn't need the charter system. It provides "little benefit" to NASCAR, and the sanctioning body would be fine going back to having open cars. He added that the current agreement is fair and equitable to all teams.