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23XI Racing and Front Row Motorsports (FRM) have won an important legal step in their battle with NASCAR. A federal judge has dismissed NASCAR’s counterclaim against the two teams. This leaves their original lawsuit against NASCAR in place.The update came from motorsports reporter Bob Pockrass, who posted the news on X along with a statement from the teams’ attorney, Jeffrey Kessler. Pockrass shared an image of Kessler’s statement with the caption,“23XI/FRM attorney Jeffrey Kessler statement on the NASCAR counterclaim against 23XI/FRM being dismissed.”In the statement, Kessler said,“We are thankful for Judge Bell's thoughtful consideration of the facts and the law, and his decision to grant Summary Judgment in my clients' favor against the NASCAR counterclaim. Today's decision has only reaffirmed my clients' unwavering pursuit of a more fair and equitable sport. Their determination remains strong as we continue our efforts for a resolution that benefits everyone – teams, drivers, employees, partners and fans.”The ruling is a win for 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and for Front Row Motorsports. Both teams have been fighting NASCAR in court over what they call unfair control of the sport.The current charter agreement ended in 2024, and talks for a new deal broke down. NASCAR offered teams a new deal which were signed by most teams, except 23XI and FRM, who refused and took legal action instead.In response, NASCAR filed a countersuit claiming the teams and 23XI co-owner Curtis Polk conspired against them. That claim has now been completely thrown out by Judge Kenneth Bell of the Western District of North Carolina. He granted summary judgment to 23XI and FRM, saying NASCAR’s counterclaim had no legal standing.Now the focus turns to the main case, whether NASCAR’s business model violates antitrust laws. The dismissal could also push both sides closer to settling before trial. Reports suggest that settlement talks earlier this month nearly succeeded.NASCAR was reportedly ready to offer permanent charters and return those revoked earlier. The main issue left unresolved was payment for lost income and legal fees.“We’re going to trial to hold NASCAR accountable,” says 23XI Racing attorney Jeffrey KesslerAfter a court session on Thursday, it seems that 23XI Racing and Front Row Motorsports will face NASCAR in a December trial. The hearing took place at the Western District of North Carolina court, led by Judge Kenneth D. Bell, who has handled the case for over a year. Judge Bell began by thanking both sides for trying to reach a settlement, even though those talks did not succeed. Kessler said both parties acted in good faith, but attorney Jeffrey Kessler did not hold back his criticism of NASCAR. In a strong statement, Kessler called out NASCAR for using intimidation and avoiding the real issues in the case. In a team statement shared after the hearing, Kessler said, “Today’s hearing confirmed the facts of NASCAR’s monopolistic practices and showed NASCAR for who they are – retaliatory bullies who would rather focus on personal attacks and distract from the facts. My clients have never been more united and committed to ensuring a fair and competitive sport for all teams, partners, drivers and fans. We’re going to trial to hold NASCAR accountable.”The upcoming trial could have major consequences for the sport. If Denny Hamlin's co-owned team and FRM lose, they could permanently lose their charters. Competing as open teams would be very expensive and could make it hard to keep their drivers, since most contracts require chartered rides. That could seriously hurt both teams.
