NASCAR has promised a federal court it will not re-distribute any charters pending the conclusion of the antitrust suit filed against the stock-car series by two race teams, one owned by Michael Jordan.
The Friday filing in the Western District of North Carolina comes one day after a heated hearing in which 23XI Racing and Front Row Motorsports argued for a preliminary injunction to have six charters restored to them until the jury trial, scheduled to begin Dec. 1.
NASCAR in multiple filings has indicated it immediately planned to re-distribute charters and has one interested party it could negotiate with right now. A charter is the equivalent of a franchise in other sports, and 23XI and FRM refused to sign the agreements last September and instead sued NASCAR, accusing the motorsports series owned and operated by the Florida-based France family as being bullies and monopolizing the stock-car racing market.
There are 36 charters for a 40-car field and U.S. District Judge Kenneth Bell on Thursday repeatedly asked NASCAR why it couldn’t take one of the four “open” ones to sell to an interested buyer, or come up with a contingency plan that would leave room to return charters to 23XI and FRM if NASCAR loses at trial.
The original four “open” charters are set aside for any potential new manufacturer to enter the sport. With the six from the two teams suing, there are technically 10 “open” charters right now. 23XI, which is owned by Basketball Hall of Famer Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row, owned by entrepreneur Bob Jenkins, want to be recognized as chartered for 2025 to receive significantly larger payouts than what they receive as “open” teams.
Bell said he would rule on the injunction next week although NASCAR’s filing Friday calms some of the urgency in that the France family has promised not to sell the charters, a move the teams claim would put them out of business.
NASCAR said its commitment was voluntary and done for “NASCAR’s desire to focus both on growing the sport for the 2026 Cup Series season and preparing for the trial.”
NASCAR said in the filing it won’t “issue, sell, convey, or lease any additional Charters for the 2025 Cup Series season,” a declaration that covers all six charters.
NASCAR also said “it will not issue, sell, convey, or lease more than four additional Charters for the 2026 Cup Series season.”
Thursday’s hearing revealed just how acrimonious it has become between NASCAR and the two teams through the disclosure of expletive-laden emails and text messages from Jordan and other high-profile litigants.
Of the 15 chartered organizations in NASCAR, only 23XI and FRM refused to sign the charter extensions. Many teams have said they felt cornered by NASCAR’s final offer, which came with a deadline and a threat to revoke the charters if they did not sign within a day.
The teams used texts and emails to attempt to show how NASCAR bullied its way into a final charter agreement.
One, from Commissioner Steve Phelps, said: “Give them the charters, pick a date and they can sign or they can lose their charters — it is that simple.’
Scott Prime, vice president of strategic development, wrote: “We have all the leverage and the teams will almost have to sign whatever charter terms we put in front of them.”
Jordan and 23XI did not sign, and Jenkins and Front Row joined the NBA great in the lawsuit. Jordan said outside court Thursday he had been open to a settlement but is willing to see the case go to jury trial.
NASCAR halting any potential sale of charters does not technically stop Bell from issuing the preliminary injunction to the teams, which are trying to show the irreparable harm it will face if they don’t have charters. 23XI driver Tyler Reddick has a clause in his contract that says he can leave the team if his car is not chartered and the team indicated in court Thursday that both Reddick and sponsors have notified them they are currently in breach.
The playoffs begin Sunday at Darlington Raceway in South Carolina and among the drivers in the 16-driver playoff field are Reddick and Bubba Wallace of 23XI and Hamlin, who drives for Joe Gibbs Racing. All three said they believe they can fairly compete for the Cup Series title while the lawsuit is ongoing.
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