23XI Racing and Front Row Motorsports (FRM) are embroiled in a legal battle with NASCAR, potentially jeopardizing their participation in future races. The teams filed an antitrust lawsuit against NASCAR, challenging the governing body’s charter system, revenue distribution, and ownership rules.
The presiding litigation focuses on several key issues:
1. Charter system: Plaintiffs argue NASCAR’s charter system unfairly restricts team ownership and creates barriers to entry.
2. Revenue distribution: 23XI and FRM claim NASCAR’s revenue sharing model favors established teams.
3. Ownership rules: The teams challenge NASCAR’s approval process for new owners.
NASCAR has countered, labeling the lawsuit “meritless” and emphasizing its confidence in the existing business model. The litigation’s outcome will significantly impact NASCAR’s team ownership structure, revenue distribution, and competitive landscape.
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