NASCAR Vows Not to Redistribute Cartels Amid Legal Battle
In the midst of an ongoing legal dispute, NASCAR has assured a federal court that it will not redistribute any cartel until the antitrust trial filed by two racing teams concludes. This promise comes after a tense hearing where the possibility of an injunction was discussed. The stock car racing series has filed a document in the Western District of North Carolina, one day after a heated hearing. In this, 23XI Racing and Front Row Motorsports argued for a preliminary injunction to recover six cartels until the jury trial, scheduled for December 1st. A cartel, comparable to a franchise in other sports, grants teams significant benefits. 23XI and FRM refused to sign the agreements last September, accusing NASCAR of monopolistic practices. Judge Kenneth Bell repeatedly questioned NASCAR about the possibility of selling one of the four “open” spots to an interested buyer or creating a contingency plan to return the cartels to 23XI and FRM if NASCAR loses the trial. 23XI, owned by Basketball Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, along with Front Row, led by businessman Bob Jenkins, seek to be recognized as holders of charters for 2025 and thus receive higher payments.NASCAR stated in the document that it will not issue, sell, transfer, or lease additional charters for the 2025 Cup Series season, covering the six charters in dispute. Furthermore, the organization assured that it will not issue, sell, transfer, or lease more than four additional charters for the 2026 season. Jeffrey Kessler, lawyer for 23XI and FRM, indicated that they will respond to the document next Tuesday. Kessler argued that NASCAR’s representations do not demonstrate that the plaintiffs do not face irreparable harm. NASCAR’s promise not to sell the cartels does not prevent Judge Bell from issuing the provisional injunction. 23XI driver Tyler Reddick has a clause in his contract that allows him to leave the team if his car does not have a cartel, and Kessler noted in court that Reddick and sponsors have notified breaches. Thursday’s hearing revealed tensions between NASCAR and the two teams, with the disclosure of emails and text messages from Jordan and other plaintiffs. Of the 15 organizations with charters in NASCAR, only 23XI and FRM refused to sign the extensions. Many teams felt pressured by NASCAR’s final offer, which included a deadline and the threat of revoking the charters if not signed on time. The teams used texts and emails to demonstrate how NASCAR pressured to reach a final agreement on the cartels.NASCAR’s statement is 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
Jordan and 23XI did not sign, and Jenkins and Front Row joined the lawsuit. Jordan stated outside the court that he was open to a settlement, but is willing to go to trial with a jury. The playoffs begin Sunday at Darlington Raceway in South Carolina. Among the drivers in the 16-driver playoff field are 23XI’s Reddick and Bubba Wallace, and Hamlin, who races for Joe Gibbs Racing. All three stated that they believe they can fairly compete for the Series Cup title while the lawsuit is ongoing.“Give them the charters, pick a date and they can sign or lose their charters, it’s that simple”.
Steve Phelps, Commissioner
