NASCAR Faces Federal Court Showdown Monday Over Charter System

The case — “23XI Racing and Front Row Motorsports v. NASCAR” — stems from a complaint filed in October 2024. The two race teams accuse NASCAR of violating Sections 1 and 2 of the Sherman Antitrust Act after more than two years of unsuccessful negotiations on a new charter structure, per Jayski.

23XI Racing, co-owned by driver Denny Hamlin and former NBA icon Michael Jordan, and Front Row Motorsports, owned by Bob Jenkins, refused to sign the latest charter deal tied to the 2025 season. They argue that NASCAR’s control over racetracks, its exclusive sanctioning authority, and its mandate for single-supplier parts all help the organization monopolize the sport. However, the main conflict centers on the charter agreement that the remaining 13 charter-holding Cup teams accepted, according to Reuters.

Charters were introduced in 2016 to provide guaranteed race entry and improved financial footing for teams. NASCAR initially granted 36 charters to established competitors. Since then, the market value of those assets has soared — reaching a combined valuation around $1.5 billion and individual sales nearing $45 million.

A major new broadcast contract signed in 2023 with FOX, NBC, Turner, and Prime — worth nearly $8 billion — gives teams a larger share of media revenue under the new charter terms. NASCAR also committed an additional $50 million in support, per filings cited by Jayski.

Supporters of the agreement argue that, while imperfect, it is essential to the sport’s financial strength. Team owner Rick Hendrick stated: “I think we worked really hard for two years and it got down to, you’re not going to make everybody happy. But in any negotiation, you’re not going to get everything you want, and so I felt it was a fair deal and we protected the charters, which was number one, we got the revenue increase, I feel a lot of things we didn’t like we got taken out, so I’m happy with where we were.”

Hendrick also emphasized the significance of the system to racing livelihoods: “The Charter agreement is critical to the stability of the NASCAR ecosystem—the teams, the businesses that support us and NASCAR itself. Undoing what we have collectively negotiated will not only result in immeasurable damage to our sport and our respective businesses, it will, most importantly, hurt the people and families that depend on us for their livelihoods.”

Related: Judge Dismisses NASCAR’s Antitrust Counterclaim Against 23XI and Front Row Motorsports

NASCAR has echoed those views and contends the lawsuit is an attempt to redo a valid contract. In its recent response, the organization said: “Today’s filing demonstrates that NASCAR’s charter system has the support of race teams throughout the garage, and that the 23XI Racing and Front Row Motorsports lawsuit is not in the best interests of the sport. This lawsuit is not about antitrust; it is merely an attempt to renegotiate an agreement that was signed and is being honored by all other race teams.

“Together with our race team partners, we remain committed to delivering the best of stock car racing to our fans every weekend.”

Several prominent owners — including Hendrick, Roger Penske, Joe Gibbs, Richard Childress, and Brad Keselowski — back the charter deal and are listed as potential witnesses for NASCAR. Jordan is expected to take the stand for the plaintiffs, according to Jayski.

The case moves to trial following notable pre-trial rulings. In December 2024, Judge Bell issued a temporary injunction allowing 23XI and Front Row to compete as chartered teams during the dispute. That decision was overturned in June by the Fourth Circuit Court of Appeals, and both teams raced as “open” entries without guaranteed spots through the end of the 2025 season.

Source: Jayski