Questions, answers about NASCAR's countersuit of 23XI, Front Row, Curtis Polk

NASCAR filed a countersuit Wednesday in U.S. District Court against 23XI Racing, Front Row Motorsports and 23XI Racing co-owner Curtis Polk.

Here are questions and answers about the matter:

Why is NASCAR doing this?

23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR and NASCAR Chairman Jim France on Oct. 2, citing that "NASCAR has unlawfully maintained its monopoly position for offering a top-tier stock car racing series in the United States in violation of the Sherman Antitrust Act."

NASCAR has fought the matter in court but Wednesday filed counterclaims that the teams and Polk "and others agreed to a scheme to pressure NASCAR to accept their collusive terms, including by engaging in media campaigns, interfering with NASCAR's broadcast agreement negotiations, threatening boycotts of NASCAR events, and engaging in a group boycott of a NASCAR Team Owner Council Meeting."

What did the teams and Curtis Polk do, according to NASCAR?

NASCAR states in court documents that 23XI Racing, Front Row Motorsports and Polk "engaged in a conspiracy and agreement in unreasonable restraint of interstate trade and commerce, constituting a violation of Section 1 of the Sherman Act. Curtis Polk knowingly and actively orchestrated and participated in this illegal conspiracy, while working as a member of the TNC on behalf of the RTA and aiding 23XI's and Front Row's participation in the scheme, also constituting a violation of Section 1 of the Sherman Act."

Who is Curtis Polk?

He is the longtime business partner of Michael Jordan. When Jordan owned the NBA Charlotte Hornets, Polk was the team's vice chairman. Polk began working exclusively with Jordan in 2001.

Polk is a co-owner of 23XI Racing. When the teams began to negotiate with NASCAR on the new charter agreement, Polk was among those on the negotiating committee for the teams.

Three main points made by NASCAR

During a call with reporters, Chris Yates, NASCAR's lead attorney, emphasized three main points from NASCAR's perspective.

1. The charter system was requested by teams in 2016 "but they provide little benefit to NASCAR itself. … NASCAR believes the Cup Series teams and NASCAR should be partners in a sport and that is why NASCAR agreed to create the charter system, again, at the request of teams."
2. NASCAR claims 23XI Racing, Front Row Motorsports and Polk "entered into unlawful agreements and boycotted and threatened to boycott NASCAR events in order to try to get even better terms in the 2025 charters. What they did, ladies and gentlemen, was illegal."
3. Yates said that 23XI Racing and Front Row "are now attempting to misuse the legal system as a last resort secure new (charter) terms."

What is NASCAR claiming was boycotted or threatened to be boycotted?

NASCAR states in court documents that in April 2023 charter team owners boycotted a meeting with NASCAR that was contractually obligated.

NASCAR states in court documents: "Polk, 23XI, Front Row and their co-conspirators agreed to attempt to interfere with NASCAR's media rights negotiations in order to extract even better terms under the 2025 Charter.

"23XI, Front Row, and others threatened to boycott qualifying races for at least one NASCAR Cup Series race."

What about the future of the charter system?

Chris Yates, lead attorney for NASCAR, noted in a call with reporters that the charter system was a concept teams wanted — not NASCAR — but that NASCAR went along with it, creating the system ahead of the 2016 season.

The new charter agreement was signed by 13 of the 15 Cup teams in September. That deal goes through the 2031 season. 23XI Racing and Front Row Motorsports were the only teams not to sign the new charter agreement.

"Let me be very clear," Yates said Wednesday morning to reporters, "NASCAR is happy to proceed with the charter system and work with any and all teams interested in collaborating to grow the sport. But by seeking a declaration that the 2025 charter agreement is illegal and violates the antitrust laws, 23XI and Front Row are essentially claiming that charters are illegal agreements.

"This opens up Pandora's box and calls into question whether the charter system can continue."

Court documents and Yates noted that a key provision of the charter system is a guaranteed starting spot for each team but that there is a provision that prohibits a charter holder from competing in another stock car racing series. In court documents, NASCAR states: "If the Charters are deemed to be anticompetitive, then either Charters will go away entirely or the cross exclusivities that benefitted both parties will be eliminated."

What about a settlement?

Yates said that a standing order requires mediation before trial and that "we'll obviously comply with that, but … this is not going to be a renegotiation of the 2025 charter. That's not going to happen. … I don't see a great path to settlement."

What happens with Wednesday's countersuit?

It will be a part of the jury trial scheduled for December 1 in U.S. District Court in Charlotte, North Carolina.

Yates said will seek a summary judgment.

What else is happening in this lawsuit?

NASCAR asked the Fourth Circuit Court of Appeals on Feb. 12 to overturn a preliminary injunction that allows 23XI Racing and Front Row Motorsports to compete as chartered teams despite not signing the new agreement. The two teams have until March 14 to respond. NASCAR's response to that is due April 12. The appeals court will hear arguments in May and a decision is expected in June on that particular matter.

Does anything change on the track?

No.

23XI Racing with Tyler Reddick, Bubba Wallace and Riley Herbst, and Front Row Motorsports with Todd Gilliland, Noah Gragson and Zane Smith will compete without regard to the lawsuits.