The Federal Court issued a significant ruling on Wednesday regarding the ongoing lawsuit involving NASCAR and two teams, 23XI Racing and Front Row Motorsports (FRM). The court decided that 12 NASCAR teams must disclose their financial records, but only to a limited extent, scaling back from an earlier order that required full disclosure of all financial records. This ruling is part of the broader legal dispute between NASCAR and the two teams who declined to sign the sanctioning body’s charter agreement and instead filed a lawsuit alleging antitrust violations.

The 12 teams appeared in court on Tuesday to contest the requirement to disclose all financial records, arguing that these documents contain sensitive business information. Their attorney, Adam Ross, warned that full disclosure would be “absolutely devastating” to their operations, as competitors could gain access to confidential details such as car sponsorships, driver salaries, and revenue streams, which must not enter the public domain.

NASCAR responded by proposing that an independent body be appointed to review the financial data anonymously, protecting sensitive information while allowing necessary analysis. Judge Bell accepted this compromise, ordering that only aggregate financial data—total revenue, total costs, and net profits—from 2014 to the present would be reviewed. Among the teams, Kaulig Racing has already complied by submitting its financial records to NASCAR.

The lawsuit arose after 23XI Racing, co-owned by Denny Hamlin and NBA legend Michael Jordan, and Front Row Motorsports, owned by Bob Jenkins, refused to sign NASCAR’s charter agreement, unlike 13 other teams. Instead, they filed the lawsuit in October 2024, challenging NASCAR’s practices as anticompetitive. NASCAR filed a countersuit in response.

Denny Hamlin issued a firm statement ahead of a recent race at Pocono Raceway, expressing readiness to pursue the lawsuit fully. He emphasized that while he hoped for a resolution through cooler heads prevailing, the opposing side was inconsistent, and 23XI Racing was prepared to continue the legal battle.

This legal conflict has involved several court decisions. Notably, in December 2024, Judge Kenneth Bell granted a preliminary injunction allowing 23XI and FRM to sign the charter agreements they were initially offered, despite NASCAR’s attempt to rescind those offers. The injunction was temporary, covering the 2025 season, with a trial scheduled for December 2025.

The teams’ refusal to sign was due to a clause in the charter agreement that would have required them to waive legal claims against NASCAR. The lawsuit challenges this clause and NASCAR’s overall control of the sport, alleging monopolistic behavior. The court found that the clause was likely unlawful and that NASCAR’s argument that premier stock-car racing was too narrow a market definition was unpersuasive.

The teams also argued that losing charter status would cause irreparable harm, including loss of drivers and sponsors, and potentially missing races. NASCAR countered that no drivers had confirmed they would leave, and that contracts allowed drivers to leave if their teams were not chartered.

As the case proceeds, 23XI and FRM continue to race as open teams for 2025, which means they are not guaranteed entry in every race and receive less revenue. They are appealing decisions and seeking to sign charter agreements without waiving their legal rights.

The case remains a high-stakes antitrust battle with significant implications for NASCAR’s governance and the business operations of its teams.

The article was authored by Sabyasachi Biswas, a motorsport journalist with extensive experience covering NASCAR and other racing series.