NASCAR Halts Card Redistribution Amid Legal Battle
NASCAR has assured a federal court that it will not redistribute any letters until the antitrust lawsuit filed by two racing teams, one of which is owned by Michael Jordan, concludes. This statement, filed Friday in the U.S. District Court for the Western District of North Carolina, follows a tense hearing where 23XI Racing and Front Row Motorsports sought a preliminary injunction to have six letters restored to them until the jury trial, scheduled for December 1st. A charter is the equivalent of a franchise in other sports, and 23XI and FRM refused to sign the agreements last September, accusing NASCAR of monopolizing the auto racing market. U.S. District Judge Kenneth Bell questioned NASCAR about the possibility of selling one of the four “open” charters to an interested buyer or creating a contingency plan to return the charters to 23XI and FRM if NASCAR loses in the trial. The four original “open” charters are reserved for any new manufacturer wishing to enter the sport. With the six from the two applicant teams, there are currently technically 10 “open” charters. 23XI, owned by Michael Jordan and Denny Hamlin, along with Front Row, owned by Bob Jenkins, are seeking to be recognized as chartered teams for 2025 and receive significantly higher payments than they currently obtain as “open” teams. Bell announced that it will issue its ruling on the injunction next week, although NASCAR’s presentation on Friday reduces the urgency by promising not to sell the letters.In its presentation, NASCAR stated that it will not “issue, sell, transfer, or lease any additional charters for the 2025 Cup Series season,” a statement that encompasses the six charters. In addition, NASCAR stated that “it will not issue, sell, transfer, or lease more than four additional charters for the 2026 Cup Series season.” Jeffrey Kessler, lawyer for 23XI and FRM, argued that NASCAR’s promise not to sell the charters is irrelevant and that they will respond to the presentation next Tuesday. The suspension of the sale of charters by NASCAR does not prevent Bell from issuing the injunction to the teams, who are trying to demonstrate the irreparable damage they will suffer if they do not have charters. Tyler Reddick, 23XI driver, has a clause in his contract that allows him to leave the team if his car does not have a charter. The hearing revealed the growing tension between NASCAR and the two teams, with the disclosure of emails and text messages containing offensive language from Jordan and other high-profile plaintiffs.NASCAR said its commitment was voluntary and was made out of “NASCAR’s desire to focus on the growth of the sport for the 2026 Cup Series season and prepare for trial.”
NASCAR
Of the 15 organizations with a charter in NASCAR, only 23XI and FRM refused to sign the charter extensions. Many teams felt that NASCAR cornered them with its final offer, which included a deadline and the threat of revoking the charters if they didn’t sign within a day.
The teams used text messages and emails to demonstrate how NASCAR pressured to reach a final agreement on the letters. A message from Commissioner Steve Phelps said: “Give them the letters, choose a date and they can sign or lose their letters, 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 terms of the letter 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 playoff series begins 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 races for Joe Gibbs Racing. The three said they believe they can fairly compete for the Cup Series title while the lawsuit is ongoing.
