Major update as NASCAR uncovers new internal evidence in 23XI and FRM legal battle
In the legal battle between 23XI Racing, Front Row Motorsports, and NASCAR, new evidence has come to light that the stock car racing association is looking to add to their recent counterclaim against the two teams' lawsuit. Based on more than 200,000 emails, memos, and texts shared in discovery, evidence has come to light that shows that the racing organizations have been working together to get better terms for charters, which indicates illegal collusion between the parties.
This has prompted NASCAR to request an amendment to their claims against 23XI Racing and Front Row Motorsports, where they state that the two teams received injunctions that allow them to compete as chartered teams under the 2024 charter agreement, which is the same agreement that the two teams allege violates antitrust law.
The recent news regarding the new evidence came from Fox Sports Journalist Bob Pockrass, who took to his X (formerly Twitter) account to share the information.
"In the 23XI/FRM lawsuit, NASCAR is asking the court to be allowed to amend its counterclaim with evidence that came from more than 200,000 pages of emails, texts, and memoranda recently obtained through discovery."
"NASCAR wants to add new info to counterclaim that it says proves teams illegally colluded to obtain better charter terms. In filing last month, 23XI claims joint negotiations are insufficient to allege concerted action, especially when can negotiate individually."
Meanwhile, 23XI Racing, owned by Michael Jordan and Cup Series driver Denny Hamlin, and FRM both continue with their lawsuit that states that the way the stock car racing association has been conducting business is monopolistic, as well as being anticompetitive, and doesn't allow teams a fair chance.
They received injunctions in December, 2024, which allowed them to compete in the sport this Cup Series season in the same way all other teams do, whilst they pursue their lawsuit against the stock car racing association.
NASCAR teams request F1 owners for financial information in legal battle
Last week, 23XI Racing and Front Row Motorsports submitted a subpoena to a court in Colorado requesting Liberty Media, which is Formula 1's parent company, for financial information in their legal battle against NASCAR. The idea behind the subpoena is so that the two teams can gain an understanding of how other motorsports operate in regards to revenue sharing.
As per Planet F1, the two racing outfits have requested for financial information from January 1, 2016, through to December 31, 2024, which is the same period of time that NASCAR has been using their charter system. The subpoena issued to Liberty Media covers these points:
- The percentage and types of revenue shared with or among the league and teams
- The formula for splitting each category of revenue among the teams and the league
- The amounts of revenue shared with or restrained by the league and the teams
- Documents that show the valuations of expansion or current teams
- The League Constitution, by-laws, and collective bargaining agreement
The two teams have also filed for subpoenas in a New York court requesting financial information from other sports as well, like NFL, NBA, and NHL.