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Racing

23XI/Front Row v NASCAR hearing puts animosity on display

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CHARLOTTE -- Thursday's preliminary injunction hearing started out with arguments about the status quo in NASCAR. It ended with Judge Kenneth D. Bell pointing out the animosity between NASCAR and Front Row Motorsports/23XI Racing.

Judge Bell, who has presided over this antitrust lawsuit since last October, delivered a message to the legal teams representing the two sides. He specifically told NASCAR lead attorney Christopher Yates and 23XI Racing/Front Row Motorsports Jeffrey Kessler that while their back-and-forth can be entertaining, he will not allow it once trial begins on Dec. 1. and jurors are in the box.

Judge Bell also said that there appears to be "disputed material facts" in this case. This followed Kessler and Yates making strong statements about each other and their respective points of emphasis. The day's back-and-forth featured comments that legal counsel "makes things up."

This hearing marked the first time that reporters in the room were able to see many things unsealed as part of the discovery process, and some of these pieces of evidence showed the animosity. Other pieces of evidence showed new details about financial aspects of NASCAR.

Let's break it down by each side:

The NASCAR Presentation

  • NASCAR showed multiple text messages and emails obtained during the discovery process. One snippet came from a longer Denny Hamlin email in which he said it would be easy to be "pessimistic" about their involvement in NASCAR. He said it was because of their leadership that they have created something great and that they would see some profits. Hamlin ended this email by saying that he is "in for the fight with NASCAR. My despise of the France family runs deep."
  • NASCAR showed two messages from 23XI Racing President Steve Lauletta reading "I wish I knew what to do and what is the best investment path" and "Being in for the long haul and Jim dying is probably the answer."

Photo credit: NASCAR

  • Another message in NASCAR's presentation featured Michael Jordan calling Gibbs "f*ckers" after the team signed the 2025 Charter Agreement. Jordan added in a message later in the day, "I think people understand our fight. Good things will come from this. Teams are going to regret not supporting us. P*ssies!!!!!!!!"
  • 23XI Racing co-owner Curtis Polk became a centerpiece of NASCAR's presentation on Thursday. One slide included a message in which he said, "And honestly, it's boring as sh*t to me. I watched that race last night uggghh that's painful to watch."
  • NASCAR pointed to Polk as the teams' organizer in the negotiations process. NASCAR's legal team included an "outline of a plan" from Polk, which featured multiple steps. One of the steps in the presentation said "Create a shadow committee that creates negotiating leverage."
  • Other parts of the presentation, which will come into play during trial, focused on whether NASCAR is a monopoly or used exclusionary tactics. The legal team argued that NASCAR paid more money to its teams in 2023 and '24 than F1. It argued that the exclusivity contracts with tracks and Speedway Motorsports were "pro-competitive" instead of "anti-competitive."
  • Yates said that 23XI Racing and Front Row Motorsports are not trying to maintain the status quo. Yates said that they are trying to "upend the status quo" by seeking a preliminary injunction to keep the teams as chartered organizations and prevent the transfer of the charters.
  • Yates argued that NASCAR gave teams "every penny" of the new media money, plus "millions" more.
  • Yates argued that no potential competitor to NASCAR ever surfaced and that the law does not allow for hypothetical situations in these monopoly cases.

Photo credit: NASCAR

The 23XI Racing/Front Row Motorsports Presentation

Like NASCAR, the two teams obtained numerous messages as part of the discovery process. We do not have screenshots of these as they did not become available after the hearing like the NASCAR presentation. 

  • One internal communication featured NASCAR Commissioner Steve Phelps, NASCAR President Steve O'Donnell, and NASCAR Executive Vice President Scott Prime. This took place before Phelps became commissioner and O'Donnell became president. In this conversation, Phelps said there were "zero wins" for the teams. He typed "give them the (contract), pick a date and sign it or lose their charters."
  • Kessler included a sarcastic message from Prime in which he said that "Here is a bit more money and f*ck off everywhere else is a bold strategy."
  • One text from O'Donnell to the NASCAR board said that the Charter Agreement draft would send a message of "F*ck the teams." O'Donnell added that it would take NASCAR back to its Southern redneck roots.
  • Another message between Prime and O'Donnell talked about LIV Golf challenging the PGA Tour. "Worried about new golf model," Prime wrote, according to the presentation. "Easy to see how our teams or outside investors could back the teams for something similar."
  • According to the documents, Prime theorized the competitor could create a "super series" featuring 10 teams, 20 entries, and around 14 races. Big sponsors, such as Liberty, could enter. In this theoretic scenario, the teams would get 50% equity in the series.
  • Documents in the teams' presentation listed ways NASCAR could prevent a competitor from surfacing. This included partnering with Speedway Motorsports and creating a car that they owned its IP. This car is the Next Gen/Gen 7.
  • The NASCAR internal documents in this presentation said that new competitors could use existing cars for their series, or they could create new versions. The documents specifically said "SRX-style" in reference to the now defunct series created by Tony Stewart and Ray Evernham.
  • Kessler argued that Jordan can afford to compete in NASCAR and that he does so due to a burning love. Kessler compared this to someone who will pay a higher price for apple pie. He argued that Jordan is moving forward with this lawsuit because he wants to help everyone else "afford apple pie."
  • A key part of the NASCAR argument is that it no longer wants to do business with Hamlin, 23XI Racing, Bob Jenkins, and Front Row Motorsports. Kessler called this false. He said that NASCAR constantly promotes Hamlin while also asking Bubba Wallace to promote the sport. He used an appearance on "Good Morning America" as an example.
  • NASCAR's lead attorney stated during his time that the messages between O'Donnell, Phelps, and Prime came from May 21, 2024. He said that a new draft of the Charter Agreement went out on May 28, 2024, that included more benefits for teams. Kessler argued this point by saying that a 1-by-1 comparison of the key financial points between the early draft and the one sent in September showed the same "F*ck the teams" deal.
  • Kessler listed multiple requests from the teams during negotiations. He said they asked for an annual payment of $720 million, permanent charters, and 1/3 of revenue. He also said they requested a seat at the table for important discussions regarding the schedule, any move toward electrification, or new initiatives such as the 24 Hours of Le Mans. According to Kessler, teams only received $430 million for the annual payment and that NASCAR's estimate of what it costs to run a team "was a lot more." This number will come to light during trial.

What is next? 

The first point of emphasis remains the preliminary injunction. Will Judge Bell grant the injunction and prevent NASCAR from selling charters until the trial ends? Will he deny the request and open the doors for NASCAR to transfer these charters to new owners? Judge Bell said that he will have a ruling next week.

After that, the legal teams will meet with Judge Bell in October. They will discuss the evidence that will not be admissible in court.