NASCAR: Will Not Sell Charters During Trial with Michael Jordan and 23XI

NASCAR Vows Not to Redistribute Cards Amid Legal Dispute

NASCAR has assured a federal court that it will not redistribute any letters pending the conclusion of the antitrust lawsuit filed by two racing teams. The stock car racing series is in the midst of a legal dispute that has generated great expectation. The document 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. A charter is the equivalent of a franchise in other sports. 23XI and FRM refused to sign the agreements last September and, instead, sued NASCAR. They accused the motorsports series, owned and operated by the France family, based in Florida, of being bullies and monopolizing the stock car racing market. U.S. District Judge Kenneth Bell repeatedly asked NASCAR why it couldn’t take one of the four “open” charters 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 four original “open” cards are reserved for any potential new manufacturer entering the sport. With the six from the two teams demanding, there are technically 10 “open” cards at this time. 23XI, owned by Basketball Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, along with Front Row, owned by businessman Bob Jenkins, want to be recognized as charter holders for 2025 to receive significantly higher payments than they receive as “open” teams. Bell said he would fail on the court order next week, although NASCAR’s filing on Friday calms some of the urgency in the sense that the France family has pledged not to sell the charters, a move that teams claim would put them out of business. NASCAR said its commitment was voluntary and was made out of “NASCAR’s desire to focus on both the growth of the sport for the 2026 Cup Series season and preparation 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 the six charters. In addition, NASCAR announced 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 charters was debatable and that they will respond to the filing next Tuesday.

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

NASCAR, by halting any possible sale of charters, technically doesn’t prevent Bell from issuing the preliminary injunction to the teams, who are trying to demonstrate the irreparable harm they will face if they don’t have charters. 23XI driver Tyler Reddick has a clause in his contract that says he can leave the team if his car doesn’t have a charter. 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 filled with expletives from Jordan and other high-profile plaintiffs.

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 in a final charter agreement.

Give them the letters, pick a date and they can sign or they can lose their letters, it’s that simple.

Commissioner Steve Phelps

We have all the leverage and the teams will almost have to sign the terms of the letter we put in front of them.

Scott Prime, Vice President of Strategic Development

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. All three said they believe they can compete fairly for the Cup Series title while the lawsuit is ongoing.