Judge reprimands 23XI, FRM, and NASCAR for failing to reach a settlement in the legal dispute

A recent court session has taken an intense turn in the legal standoff between NASCAR and two of its current competitors, 23XI Racing and Front Row Motorsports (FRM). The post quoted Judge Kenneth Bell, who made clear he was prepared to see the case through to trial in December.

The tweet was shared by Adam Stern on X, a motorsports journalist for the Sports Business Journal. In the post, Judge Bell was quoted saying,

“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 hearing took place in Charlotte, North Carolina, where attorneys from 12 of NASCAR’s 15 Cup Series teams pushed back against a discovery request that would force them to hand over sensitive financial documents to the sanctioning body. This hearing was not directly part of the 23XI Racing and Front Row Motorsports suit, but relates to subpoenas issued during discovery.

23XI Racing—co-owned by NBA Hall of Famer Michael Jordan and Cup Series driver Denny Hamlin—and Front Row Motorsports, owned by Bob Jenkins, are the only teams that refused to sign NASCAR’s latest charter agreement in September. The charter, which works similarly to a franchise model, ensures guaranteed race entries and a share of revenue for teams.

Of the 13 teams that agreed to NASCAR’s new deal, only Kaulig Racing has provided the requested financial documentation. The rest—12 in total—are resisting, claiming that revealing this data would damage competitive balance and possibly become public.

During the hearing, attorney Adam Ross stressed that financials like sponsorship deals and driver salaries are highly confidential and said releasing this data could cause “catastrophic” harm. Ross also accused NASCAR of overreaching, citing that the subpoena even includes information related to Hendrick Motorsports’ Le Mans project and Kyle Larson’s dual Indy 500/Coca-Cola 600 effort.

The teams also objected based on the charter’s arbitration clause, arguing that the current discovery process violates it. Judge Bell appeared visibly frustrated, questioning why NASCAR needed detailed financial breakdowns instead of high-level figures like the cost of running a team.

The backdrop of the legal battle is two years of failed negotiations. Most teams signed onto the new charter agreement, but 23XI and FRM held out, leading to escalating tensions and now court intervention.

The hearing also followed Judge Bell’s refusal to dismiss the 12 teams’ motion to reject NASCAR’s countersuit, which claims Curtis Polk, Jordan’s business manager, used cartel-like tactics in prior negotiations.

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23XI Racing and Front Row Motorsports push forward in NASCAR legal fight

In a formal statement reacting to the court’s latest ruling, attorney Jeffrey Kessler, representing 23XI Racing and Front Row Motorsports, addressed Judge Bell’s decision not to dismiss NASCAR’s counterclaim. The counterclaim alleges that Curtis Polk, on behalf of 23XI and FRM, engaged in manipulative group negotiation tactics.

Speaking via journalist Bob Pockrass, Kessler described the counterclaim as “meritless and retaliatory.” While he admitted that the judge did not dismiss the counterclaim, Kessler found encouragement in the court’s recognition of several of their core arguments. He said,

“Judge Bell's decision today is encouraging even though we are disappointed that he did not dismiss NASCAR's meritless, retaliatory counterclaim. The judge's recognition of many of our arguments, including the efficiency and necessity of joint negotiations and lack of credible evidence, reinforces our confidence that we will prevail in summary judgment.”

Kessler’s comments made it clear that 23XI Racing and Front Row Motorsports are standing by their decision to challenge NASCAR’s charter system. He added,

“This counterclaim is a tactic by NASCAR to divide and distract. We remain confident in our case and motivated by our original intent — to ensure a competitive and fair sport for all drivers, fans, teams, and partners.”

NASCAR has requested 11 years’ worth of financial records and internal communications, including detailed spending on projects like Hendrick Motorsports’ Garage 56 car and Kyle Larson’s cross-series race participation.