NASCAR promises not to
re-distribute charters amid heated antitrust suit with Michael Jordan's
team
[August 30, 2025]
By JENNA FRYER
NASCAR has promised a federal court it will not re-distribute any
charters pending the conclusion of the antitrust suit filed against
the stock-car series by two race teams, one owned by Michael Jordan.
The Friday filing in the Western District of North Carolina comes
one day after a heated hearing in which 23XI Racing and Front Row
Motorsports argued for a preliminary injunction to have six charters
restored to them until the jury trial, scheduled to begin Dec. 1.
NASCAR in multiple filings has indicated it immediately planned to
re-distribute charters and has one interested party it could
negotiate with right now. A charter is the equivalent of a franchise
in other sports, and 23XI and FRM refused to sign the agreements
last September and instead sued NASCAR, accusing the motorsports
series owned and operated by the Florida-based France family as
being bullies and monopolizing the stock-car racing market.
There are 36 charters for a 40-car field and U.S. District Judge
Kenneth Bell on Thursday repeatedly asked NASCAR why it couldn't
take one of the four “open” ones to sell to an interested buyer, or
come up with a contingency plan that would leave room to return
charters to 23XI and FRM if NASCAR loses at trial.
The original four “open” charters are set aside for any potential
new manufacturer to enter the sport. With the six from the two teams
suing, there are technically 10 “open” charters right now. 23XI,
which is owned by Basketball Hall of Famer Jordan and three-time
Daytona 500 winner Denny Hamlin, and Front Row, owned by
entrepreneur Bob Jenkins, want to be recognized as chartered for
2025 to receive significantly larger payouts than what they receive
as “open” teams.
Bell said he would rule on the injunction next week although
NASCAR's filing Friday calms some of the urgency in that the France
family has promised not to sell the charters, a move the teams claim
would put them out of business.
NASCAR said its commitment was voluntary and done for “NASCAR’s
desire to focus both on growing the sport for the 2026 Cup Series
season and preparing for the trial.”
NASCAR said in the filing it won't "issue, sell, convey, or lease
any additional Charters for the 2025 Cup Series season," a
declaration that covers all six charters.
NASCAR also said “it will not issue, sell, convey, or lease more
than four additional Charters for the 2026 Cup Series season.”
Jeffrey Kessler, attorney for 23XI and FRM, said NASCAR's promise
not to sell the charters was moot and said they will answer the
filing Tuesday of next week.
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Bob Jenkins, owner of Front Row Motorsports and Co-Owner Michael
Jordan, of 23XI Racing, pose before a NASCAR Cup Series auto race at
Talladega Superspeedway, Oct. 6, 2024, in Talladega, Ala. (AP Photo/
Butch Dill, File)
“Plaintiffs further do not agree that Defendants’
notice and representations demonstrate Plaintiffs face no
irreparable harm,” he said.
NASCAR halting any potential sale of charters does
not technically stop Bell from issuing the preliminary injunction to
the teams, which are trying to show the irreparable harm it 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 is
not chartered and Kessler indicated in court Thursday that both
Reddick and sponsors have notified them they are currently in
breach.
Thursday's hearing revealed just how acrimonious it has become
between NASCAR and the two teams through the disclosure of
expletive-laden emails and text messages from Jordan and other
high-profile litigants.
Of the 15 chartered organizations 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 a threat to revoke the charters if they did not sign within a
day.
The teams used texts and emails to attempt to show how NASCAR
bullied its way into a final charter agreement.
One, from Commissioner Steve Phelps, said: "Give them the charters,
pick a date and they can sign or they can lose their charters — it
is that simple.'
Scott Prime, vice president of strategic development, wrote: “We
have all the leverage and the teams will almost have to sign
whatever charter terms we put in front of them.”
Jordan and 23XI did not sign, and Jenkins and Front Row joined the
NBA great in the lawsuit. Jordan said outside court Thursday he had
been open to a settlement but is willing to see the case go to jury
trial.
The playoffs begin Sunday at Darlington Raceway in South Carolina
and among the drivers in the 16-driver playoff field are Reddick and
Bubba Wallace of 23XI and Hamlin, who drives for Joe Gibbs Racing.
All three said they believe they can fairly compete for the Cup
Series title while the lawsuit is ongoing.
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