NASCAR Vows Not to Reallocate Charters Amid Legal Battle
The NASCAR series is in the midst of a legal dispute with two racing teams, one of which is owned by basketball legend Michael Jordan. In response to the antitrust lawsuit filed, NASCAR has assured a federal court that it will not redistribute any of the licenses (charters) until the case is concluded. This promise came after a tense hearing where the 23XI Racing and Front Row Motorsports teams argued in favor of a precautionary measure to recover six licenses that were withdrawn from them. A charter is equivalent to a franchise in other sports, and 23XI and FRM refused to sign the agreements last September, accusing NASCAR of monopolizing the stock-car racing market.U.S. District Court Judge Kenneth Bell repeatedly questioned NASCAR about the possibility of selling one of the four “open” charters to an interested buyer or devising a contingency plan that would allow the charters to be returned to 23XI and FRM if NASCAR lost the trial. The four original “open” charters are reserved for any potential new manufacturer wishing to enter the sport. With the six from the two plaintiff teams, there are currently technically 10 “open” charters. 23XI, owned by Jordan and Denny Hamlin, and Front Row, owned by businessman Bob Jenkins, are seeking to be recognized as charter holders for 2025 to receive significantly higher payments. Judge Bell will announce his decision on the injunction next week, although NASCAR’s presentation on Friday diminishes the urgency by promising not to sell the licenses, an action that the teams claim would put them out of business. NASCAR stated that its commitment was voluntary and was made due to “NASCAR’s desire to focus on the growth of the sport for the 2026 Cup Series season and prepare for the trial.” In the presentation, NASCAR stated that it will not “issue, sell, transfer, or lease additional licenses for the 2025 Cup Series season,” a statement that covers the six licenses. NASCAR also said that “it will not issue, sell, transfer, or lease more than four additional licenses for the 2026 Cup Series season.” Jeffrey Kessler, lawyer for 23XI and FRM, argued that NASCAR’s promise not to sell the licenses is irrelevant and they will respond to the presentation next Tuesday. NASCAR’s decision to halt the potential sale of licenses does not technically prevent Judge Bell from issuing the injunction to the teams, who seek to demonstrate the irreparable harm they will suffer if they do not have the licenses. 23XI driver Tyler Reddick has a clause in his contract that allows him to leave the team if his car does not have a license, and Kessler indicated in court that both Reddick and the sponsors have notified them that they are currently in breach. The hearing revealed the growing animosity between NASCAR and the two teams, with the disclosure of emails and text messages with offensive language from Jordan and other high-profile plaintiffs.NASCAR has indicated that it planned to immediately redistribute the licenses and has an interested party with whom it could negotiate right now.
Alofoke Deportes
Of the 15 licensed organizations in NASCAR, only 23XI and FRM refused to sign the license extensions. Many teams felt they were cornered by NASCAR’s final offer, which included a deadline and the threat of revoking licenses if they didn’t sign within a day.
The teams used texts and emails to try to demonstrate how NASCAR imposed a final licensing agreement. One of the messages, from commissioner Steve Phelps, said: “Give them the licenses, choose a date and they can sign or lose their licenses, it’s that simple”. Scott Prime, Vice President of Strategic Development, wrote: “We have all the leverage and the teams will almost have to sign the license terms we present to them.” Jordan and 23XI did not sign, and Jenkins and Front Row joined the NBA legend in the lawsuit. Jordan stated out of court that he was open to a settlement, but is willing to let the case go to a jury trial. The playoffs begin Sunday at Darlington Raceway in South Carolina, and among the drivers in the 16-driver playoff field are 23XI’s Reddick and Bubba Wallace, and Hamlin, who races for Joe Gibbs Racing. The three said they believe they can fairly compete for the Cup Series title as the lawsuit continues.
