NASCAR Vows Not to Redistribute Cards Amid Legal Battle
NASCAR has assured a federal court that it will not redistribute any letter until the antitrust lawsuit filed by two racing teams, one of which is owned by Michael Jordan, concludes. This statement, filed Friday in the Western District of North Carolina, comes a day after a heated hearing. In this hearing, 23XI Racing and Front Row Motorsports argued for a preliminary injunction to have six charters restored to them until the jury trial, scheduled for December 1st. NASCAR, in multiple presentations, had indicated its immediate intention to redistribute the charters, even mentioning an interested party with whom it could negotiate. A charter is the equivalent of a franchise in other sports. 23XI and FRM refused to sign the agreements last September and sued NASCAR, accusing the motorsports series, owned and operated by the France family, of being oppressive and monopolizing the stock car racing market. There are 36 charters for a field of 40 cars. U.S. District Judge Kenneth Bell repeatedly asked NASCAR why it couldn’t use one of the four “open” charters to sell to an interested buyer, or devise a contingency plan that would allow charters to be returned to 23XI and FRM if NASCAR loses at trial. The four original “open” charters are reserved for any potential new manufacturer wishing to enter the sport. With the six from the two suing teams, there are currently technically 10 “open” charters. 23XI, owned by basketball legend Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row, owned by businessman Bob Jenkins, want to be recognized as charter holders for 2025 and receive significantly higher payments than they receive as “open” teams. Bell announced that he would rule on the injunction next week, although NASCAR’s presentation on Friday reduces some of the urgency, as the France family promised not to sell the charters, a measure that, according to the teams, would put them out of business. NASCAR stated that 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 the trial.” In the presentation, NASCAR stated that it will not “issue, sell, transfer, or lease any additional charters for the 2025 Series Cup season,” a statement that covers the six charters. NASCAR also said 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, called NASCAR’s promise not to sell the charters as debatable and said they will respond to the filing next Tuesday.NASCAR’s suspension of any possible sale of charters does not technically prevent Bell from issuing the preliminary injunction to the teams, who are trying to demonstrate the irreparable harm they will face if they do not have charters. 23XI driver Tyler Reddick has a clause in his contract that says he can leave the team if his car does not have a charter, and Kessler indicated in court on Thursday that both Reddick and the sponsors have notified them that they are currently in breach. The hearing on Thursday revealed how sour the situation between NASCAR and the two teams has become through the disclosure of emails and text messages with explicit language from Jordan and other high-profile plaintiffs.The plaintiffs also do not agree that the defendants’ notice and representations demonstrate that the plaintiffs do not face irreparable harm.
Jeffrey Kessler, attorney for 23XI and FRM
Of the 15 organizations with a charter 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 included a deadline and the threat of revoking the charters if they didn’t sign within a day.
The teams used texts and emails to try to demonstrate how NASCAR imposed itself to reach a final agreement on the letters. One, from commissioner Steve Phelps, said: “Give them the letters, pick 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 said outside the court on Thursday that he had been open to a settlement but is willing to see 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 while the lawsuit is ongoing.
