Michael Jordan’s 23XI racing team and Front Row Motorsports are embroiled in a high-stakes antitrust lawsuit against NASCAR and chairman Jim France, alleging that the charter system unfairly restricts competition and violates antitrust law. The dispute intensified when NASCAR filed a lawsuit accusing the teams of forming an illegal cartel and coercing the organization through media campaigns and boycott threats.

And now amid the maneuvers, a new development has stirred the courtroom drama. NASCAR had filed a motion seeking sanctions against Front Row and 23XI Racing for allegedly misinterpreting facts to the court. And in response, their attorney, sports lawyer Jeffrey Kessler, has labeled the move as a baseless distraction. Things have just gotten intense.

LMC and FRM lawyer slams NASCAR for hurting his clients and stock car racing

The legal saga began in October 2024 when 23XI Racing and Front Row Motorsports declined to sign NASCAR’s new charter agreements and filed a federal antitrust lawsuit in the Western District of North Carolina. The teams argued that the NASCAR charter system is monopolistic, restricts fair competition and bows to contractual terms that waive legal claims. In December 2024, a US district judge partially sided with them by granting a preliminary injunction allowing them to race as chartered teams.

However, in June 2025, a three-judge appellate panel vacated that injunction, reversing the lower court’s decision and enabling NASCAR to potentially revoke their charters. At the heart of the case lies a broad issue of financial fairness. NASCAR has demanded up to 11 years of teams’ financial records, including sponsorship deals, driver salaries, and revenue streams, to assess the viability of the charter system. But attorneys of most teams warn this disclosure could be “catastrophic,” jeopardizing competitive balance and revealing sensitive proprietary data.

And now on Friday, NASCAR filed a motion seeking sanctions against 23XI Racing and Front Row, accusing them of making false representations to the court. In retaliation, attorney Jeffrey Kessler dismissed the filings by saying, “This is yet another baseless distraction intended to try to divert the court’s attention from the overwhelming evidence that demonstrates that Jim France and NASCAR have been operating an unlawful monopoly that has hurt not just my clients, but also stock car racing.”

The complaint, filed by the two teams, asserts that NASCAR uses its charter system, introduced in 2016 and renewed in 2025, to control team participation with take-it-or-leave-it terms. These agreements include non-compete clauses preventing teams from racing in any non-NASCAR events and mandate the use of NASCAR approved single-source suppliers for next GEN cars, undermining competitive freedom. The teams argue that these provisions artificially limit their options and unfairly protect NASCAR economic dominance.

Moreover, under Section 2 of the Sherman Act, and NASCAR is accused of holding monopsony power, being the only buyer in the premier stock car racing market, and forcing teams to accept unfavorable terms or be excluded. The lawsuit for high mergers, such as the acquisition of ARCA and International Speedway Corporation, is an example of blocking competition at the circuit and track levels.

Losing charter status has cascading effects. Teams lose guaranteed race entry, reduced payout structures and face the risk of failing to qualify. The legal filing notes that NASCAR could begin selling these valuable charters if revoked, further endangering the financial stability and competitiveness of 23XI Racing and FRM.

Despite the setbacks, including losing their appeal injunction and facing sanctions, the two teams remain defiant. Their attorney reaffirmed the lawsuit’s purpose, which is to create a fair and transparent racing ecosystem. Jury trial is scheduled for December 1, giving both sides more time to gather evidence and shape their arguments. Things look very dicey for the two teams, especially 23XI Racing, who got countered for their driver Ambassador program. However, amid lawsuits and filings, Jimmie Johnson’s Legacy Motor Club is also caught in a crossfire with the team, Rick Ware Racing.

Jimmie Johnson’s LMC is bound to pay a $5 million bond in lawsuit with Rick Ware Racing

Jimmie Johnson, now the lead owner of Legacy Motor Club, has actively been exploring his expansion into a three-car corporation. Speaking to the Never Settle podcast, Johnson revealed, “It’s our intentions and ambitions to put a third car on the grid in ‘26. I’d say, worst case scenario, ‘27, but we’re working hard to make 26 happen I think you also look through the garage area in the Cup Series, and there is some young talent that took early steps to get into vehicles. So they’re just questions in mind, especially wearing my team owner’s hat. We’re looking to expand to a third car and hope to announce some stuff in the near future around that. But where to look, it’s tough.”

But this expansion goal is intervened with a high-stakes legal battle. LMC is suing Rick Ware Racing over what it claims was a contract to sell a charter in 2026. That deal is now in limbo. In mid-2025, a judge granted a 10-day temporary restraining order preventing RWR from transferring its charters while a lawsuit unfolds over ownership and timing. This injunction gives LMC a temporary hold, but not certainty, for their third car aspirations.

Amid this uncertainty, rumors are circulating about a possible merger or acquisition between LMC and Haas Factory Team. The speculative reports suggest that LMC could acquire Haas’s No. 41 charter, and they are an existing race shop, adding valuable infrastructure to power a third car. Some industry observers see this as LMC’s Plan B if they’re unable to secure the RWR charter. Legacy Motor Club will now have to post a $5 million bond by Friday, August 8, after the 10 day restraint. The court may consider Legacy’s request for a preliminary injunction and a trial set for that in January 2026. Legacy also filed a second suit against Puchyr for interfering with their deal.

However, a merger with Haas could rapidly elevate Legacy’s competitive footprint, but not without challenges. Aligning Toyota-based Legacy with a defunct Ford-aligned team presents logical hurdles. Additionally, NASCAR would need to approve any charter transfers. Yet, the possibility reflects LMC’s serious determination to build a sustainable multicar organization.