NASCAR Halts Card Redistribution Amid Legal Battle
In a move aimed at easing legal tensions, NASCAR has assured a federal court that it will not redistribute any letters until the antitrust lawsuit filed by two racing teams concludes. This action follows a tense hearing and highlights the complexity of the current situation in the world of motorsports. NASCAR’s promise, presented Friday before the U.S. District Court for the Western District of North Carolina, comes a day after a hearing in which 23XI Racing and Front Row Motorsports argued for a preliminary injunction to have six charters restored until the jury trial, scheduled for December 1. 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 France family-owned motorsports series of being abusive and monopolizing the car racing market.U.S. District Judge Kenneth Bell had questioned NASCAR about why it couldn’t sell one of the four “open” charters to an interested buyer or devise a contingency plan that would allow the charters to be returned to 23XI and FRM if NASCAR lost in court. Technically, there are 10 “open” charters currently available. 23XI, owned by Basketball Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row, owned by businessman Bob Jenkins, are seeking to be recognized as charter holders for 2025, in order to receive significantly higher payments than they get as “open” teams. On Friday, NASCAR stated that it will not “issue, sell, transfer, or lease any additional charters for the 2025 Cup season,” a statement that encompasses the six disputed charters. 23XI and FRM’s lawyer, Jeffrey Kessler, downplayed NASCAR’s promise not to sell the charters and announced that they will respond to the filing next Tuesday. NASCAR’s decision to halt any potential sale of charters does not prevent Judge Bell from issuing the preliminary injunction to the teams, who are trying to demonstrate the irreparable harm they will suffer if they do not have charters. 23XI driver Tyler Reddick has a clause in his contract that allows him to leave the team if his car does not have a charter. Thursday’s hearing revealed the growing animosity between NASCAR and the two teams, through the disclosure of emails and text messages with foul language from Jordan and other high-profile plaintiffs.NASCAR will not issue, sell, transfer, or lease any additional charters for the 2025 Cup season.
NASCAR Statement
Of the 15 licensed organizations in NASCAR, only 23XI and FRM refused to sign the license extensions. Many teams felt that NASCAR had cornered them with its final offer, which included a deadline and the threat of revoking licenses if they didn’t sign within a day.
The teams used text messages and emails to try to demonstrate how NASCAR imposed itself to reach a final agreement on licenses. 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 was open to a settlement, but that he is willing to see the case go to a jury trial. The playoffs begin Sunday at Darlington Raceway in South Carolina. Among 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 compete fairly for the Cup title while the lawsuit is ongoing.
