NASCAR Vows Not to Redistribute Cartels Amid Antitrust Litigation
NASCAR has assured a federal court that it will not redistribute any cartel while the antitrust lawsuit filed by two racing teams, one of which is owned by Michael Jordan, is resolved. The presentation on Friday in the Western District of North Carolina comes one day after a heated hearing, where 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. In multiple presentations, NASCAR had indicated its plan to redistribute the charters immediately, with an interested party with whom it could negotiate. A charter is the equivalent of a franchise in other sports, and 23XI and FRM refused to sign the agreements last September, accusing the France family-owned motorsports series, based in Florida, of intimidation and monopolizing the stock car racing market. There are 36 charters for a 40-car field, and U.S. District Judge Kenneth Bell repeatedly asked NASCAR why it couldn’t use one of the four “open” ones to sell to an interested buyer, or devise a contingency plan that would leave room to return the charters to 23XI and FRM if NASCAR loses at trial. The original four “open” charters are reserved for any potential new manufacturer entering the sport. With the six from the two teams that are demanding, there are technically 10 “open” charters at the moment. 23XI, owned by Basketball Hall of Famer Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row, owned by businessman Bob Jenkins, wish to be recognized as charter holders for 2025 and receive significantly higher payments than they receive as “open” teams. Bell said he would rule on the court order next week, although NASCAR’s filing on Friday calms some of the urgency, as the France family pledged not to sell the charters, a move that teams claim 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 to prepare for the trial.” NASCAR stated in the presentation that it will not “issue, sell, transfer, or lease additional charters for the 2025 Cup Series season,” a statement that covers all 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, said that NASCAR’s promise not to sell the cartels was debatable and that they will respond to the filing next Tuesday.NASCAR’s suspension of any possible cartel sales 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 cartels. 23XI driver Tyler Reddick has a clause in his contract that says he can leave the team if his car does not have a cartel, 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 how sour the situation between NASCAR and the two teams has become through the disclosure of emails and text messages loaded with expletives from Jordan and other high-profile plaintiffs. Of the 15 organizations with charters in NASCAR, only 23XI and FRM refused to sign the extensions of them. 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 cartels. One, from commissioner Steve Phelps, said: “Give them the cartels, choose a date and they can sign or lose their cartels, 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 cartel we present to them.” Jordan and 23XI did not sign, and Jenkins and Front Row joined the NBA great in the lawsuit. Jordan said outside the court on Thursday that he had been 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, 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 said they believe they can compete fairly for the Cup Series title while the litigation is ongoing.The plaintiffs also disagree that the defendants’ notice and representations demonstrate that the plaintiffs do not face irreparable harm.
Jeffrey Kessler, attorney for 23XI and FRM
