Concerned teams argue in court over NASCAR subpoena for financial data

Concerned teams argue in court over NASCAR subpoena for financial data

The contentious legal battle between 23XI Racing, Front Row Motorsports and NASCAR is not cooling off. This week has been a busy one with Judge Kenneth D. Bell of the Western District of North Carolina striking down the team’s request to dismiss NASCAR’s countersuit against them.

But the most interesting storyline off the track and in the courtroom involves the ongoing battle to obtain financial data from the chartered teams that did sign the 2025 Charter Agreement. NASCAR is seeking over a decade’s worth of financial documents from 12 organizations who aren’t even a part of this bitter lawsuit (minus Kaulig Racing, which came to their own agreement with the sanctioning body). And for those unaware, this case involves 23XI and FRM accusing NASCAR and the France family of violating antitrust laws and operating as an illegal monopoly. 

What NASCAR is looking for

Nascar Cup Series signage

Photo by: Chris Graythen – Getty Images

On Monday, there were court filings that showcased some communication between the legal representatives of both NASCAR and the teams. It outlined some of what they are looking to obtain, including the following: Documents to show financial investments in motorsports other than NASCAR Cup (including the value of those investments); documents related to investments in each race team and/or their investments in other race teams; documents that showcase an ability, inability, or interest to race, compete, invest, or otherwise participate in any form of motorsport beyond NASCAR Cup; documents relating to the value of NASCAR charters; documents that showcase costs, revenues, profits, sources of financing, return on investment, financial projections, valuations, and other business plans that are relevant to their participation in the top level of the sport.

But more interestingly, NASCAR wants very specific communications between the teams and it’s obvious why. As part of their countersuit, they are claiming that there was a scheme to “threaten, coerce, and extort” sport, placing most of the blame on 23XI co-owner (and Michael Jordan’s longtime agent/business partner) Curtis Polk.

To help with that, they are seeking (and this is the exact quote) “all communications regarding whether or not to skip, protest or disrupt a NASCAR event, meeting, press conference, practice, qualifying, race, or promotion, including the NASCAR documentary series with Netflix.” 

There were rumblings last year that some teams were considering not taking part in the Netflix documentary while negotiations surrounding the 2025 Charter Agreement were ongoing, so that request would line up directly with those reports.

Front Row Motorsports logo

Front Row Motorsports logo

Photo by: Jeff Robinson/Icon Sportswire via Getty Images

But all of this came to a head in court on Tuesday as oral arguments were heard from both sides. Motorsport.com was not present at the hearing, but according to AP News, one of the more interesting moments came when Judge Bell said: “I am amazed at the effort going into burning this house down over everybody’s heads. But I’m the fire marshal and I will be here in December if need be.”

The trial is set to begin on December 1st, which is what he was referencing. Attorney Adam Ross, who is representing the chartered teams (beyond 23XI/FRM), expressed concern over this sensitive information potentially making its way into the public domain. Per the AP, he said of this possibility: “It would be absolutely devastating to these race teams if their competitors were able to find out sponsorships on the cars, driver salaries and all revenue streams.”

Another major thread this month is the fate of 23XI and FRM’s charters. They are at risk of losing them after a recent ruling that chose to rescind the preliminary injunction that allowed them to keep the charters while the lawsuit unfolds. They are appealing that decision in a last-ditch effort to save their charters, but it’s possible they could lose them in the middle of the 2025 season.

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