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Mid-Trial Settlement of Racing Teams’ Antitrust Suit Against NASCAR

By Sulaiman Abdur-Rahman and Ross Todd
December 24, 2025

[Editor’s Note: In 23XI Racing LLC v. National Association of Stock Car Racing LLC (NASCAR), 3:24-CV-00886 (W.D.N.C.), racing teams 23XI and Front Row Motorsports Inc. sued NASCAR, including over the latter’s inclusion of a waiver clause in agreements that permit teams to compete in NASCAR’s pinnacle Cup Series. The disputed clause stated in part: “Team Owner … hereby releases and forever discharges [NASCAR Event Management] ... from all [claims] ... arising out of or relating to the criteria used by [NASCAR Event Management] to determine whether or not to enter into, or to offer to enter into, a Charter Member Agreement with the Team Owner or any other Person ....”]

Thirteen of NASCAR’s 15 teams signed the 2025 Charter Agreement in September 2024 allegedly based on NASCAR’s ending contract negotiations and requiring the teams to sign the charter agreements within a few hours. The other two teams 23XI and Front Row instead filed an antitrust complaint in the U.S. District Court for the Western District of North Carolina accusing NASCAR of antitrust activity in violation of the federal Sherman Act, 15 U.S.C. §§1 and 2. 23XI and Front Row argued the waiver clause blocked racing teams from bringing antitrust claims against NASCAR.

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