First day of NASCAR antitrust lawsuit wraps up

December 1, 2025

Following compelling opening statements from attorneys on both sides in the antitrust case of 23XI Racing and Front Row Motorsports against NASCAR, the first day of trial concluded with 23XI co-owner Denny Hamlin taking the stand.

During direct examination by Jeanifer Parsigian, a plaintiffs’ attorney from Winston & Strawn, in Judge Kenneth D. Bell’s courtroom, Hamlin had just begun addressing the case's key issues before proceedings in the Western District of North Carolina Courthouse ended at 5 p.m. on Monday.

Hamlin testified that 23XI Racing had invested $4.7 million, $13.5 million, and $28 million in acquiring three NASCAR Cup Series charters as the team, co-founded with former NBA star Michael Jordan, expanded from a business idea to a three-car operation with a $35-million headquarters in Huntersville, N.C.

These figures were also highlighted in opening statements by John Stephenson of Alston & Bird, one of the firms representing NASCAR and its chairman and CEO Jim France in the case.

The charter system, introduced by NASCAR in 2016 at the request of Cup Series teams, is central to the dispute. When charters were up for renewal in 2025, 23XI and Front Row, owned by Bob Jenkins, chose not to sign, unlike the 13 other chartered Cup teams.

Jeffrey L. Kessler, the lead attorney for the plaintiffs, argued in his opening statement that NASCAR, acting as a monopsony in top-tier stock car racing (being the sole buyer of services), used its power to lower the prices paid to race teams, negatively impacting them.

Stephenson responded that the original charter agreement provided benefits to Cup teams that were previously unavailable: guaranteed starting spots for all 36 chartered cars, extra payments to charter holders, and an asset (the charter itself) that has appreciated in value, with sales reaching up to $45 million.

“NASCAR paid every cent owed to the teams for nine years,” Stephenson stated. “You won’t hear that NASCAR broke its promise to the teams under the charter agreement.”

Kessler argued that NASCAR’s ownership of Cup Series tracks and exclusive agreements with other venues, particularly those owned by Speedway Motorsports, Inc., hindered race teams from securing fair market value for their services.

Stephenson noted that the Department of Justice’s Antitrust Division had reviewed NASCAR’s $2 billion acquisition of International Speedway Corporation (and its racetrack portfolio) in 2019.

Stephenson also claimed that none of the alleged anticompetitive issues—whether related to race tracks, the Gen-7 race cars and associated intellectual property restrictions, or the charter system—had been raised during two-and-a-half years of charter negotiations or in an eight-point letter sent by 23XI to NASCAR before the lawsuit was filed.

“This is not a case about anti-competitive conduct at all,” Stephenson declared.

In his testimony, Hamlin estimated that the average cost to field a race car for a year is $20 million. He further stated that each charter paid an average of $12.5 million to respective race teams in 2025, compared to about $9 million under the previous charter agreement.

Hamlin, recalling his parents' financial support early in his racing career, emphasized the need for teams to have a say in NASCAR-mandated expenses as a reason for not signing the 2025 charter agreement.

“Schedule, car changes, rule changes—all those things directly affect our bottom line,” said Hamlin, who is set to continue his testimony and face cross-examination on Tuesday.

As an example, Hamlin mentioned the Cup Series race in Mexico City, which was challenging due to overtime costs for employees and complex logistics.

Jury selection on Monday morning proceeded smoothly with just one issue. One juror was released due to family obligations and promptly replaced. The jury, tasked with determining the facts of the case, comprises six men and three women.

Judge Bell repeatedly instructed the jurors not to discuss the case with anyone outside the courtroom.