When 23XI Racing and Front Row Motorsports teamed up to sue NASCAR over how the sport divvies up media revenue, it felt like a shot heard ’round the garages. Michael Jordan’s squad wasn’t just racing for trophies anymore. They were racing for financial transparency. And the timing? Perfectly chaotic. With NASCAR pushing for a new charter deal, the lawsuit cracked open conversations the sanctioning body likely wanted to keep behind closed doors.

Since then, it’s been a swirl of legal briefs and pointed rebuttals, with 23XI Racing and FRM asking other leagues—NFL, NBA, NHL—for internal financial data to make their case. But this week, the tide didn’t turn their way. One major league, in particular, isn’t playing ball, and Jordan may be feeling the full-court press.

NFL, NBA, NHL stand firm as NASCAR teams seek financial transparency

The legal battle between 23XI Racing, co-owned by Michael Jordan, and Front Row Motorsports (FRM) against NASCAR took another contentious turn this week. NFL, NBA, and NHL doubled down on their refusal to provide sensitive financial data requested by the two race teams. The teams had subpoenaed major U.S. sports leagues for revenue-sharing and financial information. This request aimed to draw comparisons between NASCAR’s business model and those of other leagues. The NFL’s latest response, filed this week, emphasized just how tightly guarded their financial data is.

NFL officials noted that even NFL teams do not have access to the requested information. Only a select group of league and NFL Players Association employees can view such details. The NBA and NHL echoed this stance, calling the request “broad” and “flimsy.” But, in clearer words, the organizations argued that the financial records sought are not directly relevant to the dispute between 23XI/FRM and NASCAR.

Moreover, the leagues also argued that the potential harm in disclosing such proprietary data far outweighs any benefit to the NASCAR lawsuit. This collective pushback leaves Michael Jordan and his 23XI Racing team on an island, as the leagues close ranks to protect their internal financial workings. The legal team maintains that the data is crucial for a “yardstick comparison” to demonstrate how revenue distribution in NASCAR differs from other major sports. After F1 rejected their request to grant the needful, they had turned to other leagues. Now, this is very problematic.

The reason is that the recent counter lawsuit would be a financial disaster to both teams. According to The Athletic, “NASCAR is asking the court for triple damages as well the elimination of the guaranteed starting positions for 23XI and Front Row Motorsports into Cup Series races if the groups continue litigation aiming to make the Charter Agreements unlawful under antitrust laws.” Jeffrey Kessler, attorney for 23XI and Front Row Motorsports, also stated to the US weekly the lawsuit is “a meritless distraction and a desperate attempt to shift attention away from its own unlawful, monopolistic actions.”

However, with the NFL and others refusing to budge, the racing teams face an uphill battle in acquiring the data they believe is key to their antitrust claims. As the lawsuit grinds on, new deadlines and hearings loom. But the message from America’s biggest sports leagues is clear. Their financial playbooks are staying closed, even as the pressure mounts in one of motorsport’s most high-profile legal showdowns.

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Good news for Front Row Motorsports amid NASCAR lawsuit

At least there’s some good news for Front Row Motorsports (FRM), one of the teams embroiled in the ongoing high-stakes lawsuit against NASCAR. While much of the attention has focused on FRM and 23XI Racing’s antitrust suit challenging NASCAR’s charter system, FRM recently scored a significant legal victory of its own. They won a $2.1 million lawsuit over a NASCAR charter deal! Do you know where it started?

FRM bought its charter from BK Racing in 2016 for $ 2 million. According to the deal, it was agreed to be ‘debt-free’. Turns out later, it actually wasn’t. A bank was still owed over $9 million and had a lien on it. This left the Front Row folks in hot water. They are along the lines of ‘hey, you know what? You are covering the debt. I am only paying the $2 million I owe you.’ Fair point. But two BK Racing principals, Michael DiSeveria and Ronald Devine, who had signed the deal, refused to pay it. A federal appeals court said the agreement was valid and the settlement reasonable. And so we are here! Technically, $2.1 million, plus interest.

This provides a much-needed boost amid the uncertainty surrounding NASCAR’s charter system and the broader antitrust case. The legal wrangling over charters has major implications for the teams’ financial stability and future in the sport. Charters guarantee a spot in every race, prize money, and other key protections, making them essential assets for any top NASCAR team. FRM’s win not only secures a financial windfall but also strengthens its position as it navigates the turbulent waters of NASCAR’s evolving business landscape.

But, on whose side would the law be? Comment down your answers below.