NASCAR countersues 23XI Racing, Front Row Motorsports, 23XI co-owner 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, citing that the parties “embarked on a strategy to threaten, coerce, and extort NASCAR into meeting their demands for better contract and financial terms.”

A NASCAR attorney said in a call with media Wednesday morning that 23XI Racing and Front Row Motorsports’ actions “threatens the future of the Charter system.”

Charters have been place since 2016. They guarantee teams a starting spot in each race and also provide a payment plan for teams that includes nearly 50% of the money from the new media rights deal that goes from this season through the 2031 season.

23XI Racing and Front Row Motorsports filed an antitrust lawsuit Oct. 2 against NASCAR and NASCAR Chairman Jim France, stating, “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.”

In court documents filed Wednesday, NASCAR states:

“Beginning no later than June 2022, Counterclaim Defendants 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 (the negotiating committee) 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.

“The conspiracy and agreement consists of an agreement to engage in concerted action among Counterclaim Defendants and others to limit competition, increase payments, and otherwise demand their preferred terms for Charter teams by agreeing on the terms they would offer and agree to when collectively negotiating the 2025 Charter Agreements with NASCAR.”

“This is not the first time that 23XI and FRM have sought to impose their viewpoints, and those of their counsel, on the racing teams writ large. And it is truly ironic that in trying to blow-up the Charter system, 23XI and FRM have sought to weaponize the antitrust laws to achieve their goals. That is because the undisputed reality is that it is 23XI and FRM, led by 23XI’s owner and sports agent Curtis Polk who willfully violated the antitrust laws by orchestrating anticompetitive collective conduct in connection with the terms of the 2025 Charter Agreements.”

In regards to Polk, NASCAR states in its counterclaim:

“Polk put this plan into action during 23XI-led negotiations on behalf of the members of the Race Team Alliance (“RTA”), seeking to extract more favorable financial and non-financial terms than in the 2016 Charter. Polk played an active role in coordinating the Counterclaim Defendants’ concerted actions, negotiating on behalf of all RTA members when engaging with NASCAR on terms such as the payments the teams would receive as part of the 2025 Charter.

“Polk sent multiple requests to NASCAR on behalf of all RTA members demanding changes to the 2025 Charter, and otherwise threatening that the RTA members would take adverse group actions if such demands were not met. Polk’s individual role was at the very center of the plot to use collusive behavior to extract more favorable commercial terms from NASCAR in the Charter negotiations.

“These strategies and threats included, but were and are not limited to, a group boycott and threatened group boycotts of NASCAR events, including televised qualifying races, negative media campaigns, meetings with at least one NASCAR media partner to affect ongoing NASCAR negotiations for a new media rights agreement, and threats/coercion to other team owners to ‘not break ranks.’ The Counterclaim Defendants’ anticompetitive negotiating strategy had an adverse effect on both the 2025 Charter and NASCAR’s renewal of its media rights agreements. And, Counterclaim Defendants continue to ensure that teams are “aligned” in their positions vis-à-vis NASCAR even though the teams are horizontal competitors.”

Chris Yates, lead attorney for NASCAR, said that this matter will be a part of the Dec. 1 jury trial scheduled the lawsuit brought by 23XI Racing and Front Row Motorsports.

Yates said in a call with reporters that while NASCAR will participate in court-mandated mediation, “I don’t see a great path to settlement.”