NASCAR Vows Not to Redistribute Cards Amid Legal Dispute
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. The presentation on Friday in the Western District of North Carolina came a day after a tense hearing where 23XI Racing and Front Row Motorsports argued for a restraining order to have six charters restored to them until the jury trial, scheduled for December 1st. In multiple presentations, NASCAR had indicated its intention to immediately redistribute the charters, with a possible 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, accusing NASCAR, owned by the France family, of monopolistic practices. There are 36 charters for a field of 40 cars. U.S. District Judge Kenneth Bell repeatedly asked NASCAR why it couldn’t sell one of the four “open” charters to an interested buyer, or create a contingency plan that would allow the charters to be returned to 23XI and FRM if NASCAR lost 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 requesting teams, there are currently technically 10 “open” charters. 23XI, owned by basketball legend 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, which would allow them to 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 the urgency, as the France family promised not to sell the charters, a measure that 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 season and prepare for the trial.” In the presentation, NASCAR stated that it will not “issue, sell, transfer, or lease additional charters for the 2025 Cup season,” a statement that covers the six charters. NASCAR also indicated that “it will not issue, sell, transfer, or lease more than four additional charters for the 2026 Cup season.” Jeffrey Kessler, lawyer for 23XI and FRM, argued that NASCAR’s promise not to sell the charters is debatable and that they will respond to the presentation next Tuesday. “Plaintiffs also do not agree that the defendants’ notice and representations demonstrate that the plaintiffs do not face irreparable harm,” he stated. NASCAR’s suspension of any possible sale of charters does not technically prevent Bell from issuing the 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 allows him to 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. Thursday’s hearing revealed the growing animosity between NASCAR and the two teams, through the disclosure of emails and text messages with explicit language from Jordan and other high-profile litigants.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 came with 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 letter.Scott Prime, Vice President of Strategic Development, wrote: “We have all the leverage and the teams will almost have to sign any terms of the letter we put in front of them.” Jordan and 23XI did not sign, and Jenkins and Front Row joined the NBA legend in the lawsuit. Jordan stated outside the court on Thursday 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. All three stated that they believe they can fairly compete for the Cup title while the lawsuit is ongoing.One, from commissioner Steve Phelps, said: “Give them the letters, choose a date and they can sign or lose their letters, it’s that simple”.
Steve Phelps
