The charter dispute between NASCAR and 23XI/Front Row has moved from stalled talks to an antitrust lawsuit, with leaked texts from senior executives and Michael Jordan setting the tone for a 1 December 2025 trial.
Two NASCAR Cup teams refused to sign NASCAR’s 2025–31 charter extension last September.
Instead, 23XI Racing (co-owned by Michael Jordan and Denny Hamlin) and Front Row Motorsports filed a federal antitrust suit in North Carolina.
The teams allege NASCAR wields monopoly power through its charter system and related contracts.
NASCAR denies the claims and in March 2025 filed a countersuit calling the teams’ tactics a “per se illegal cartel,” singling out 23XI co-owner and Jordan adviser Curtis Polk; the sanctioning body seeks, among other things, the return of the teams’ pre-existing charters.
A preliminary injunction briefly let the teams compete as chartered entries for 2025, but the Fourth Circuit vacated that order on June 5, 2025. Subsequent district-court rulings left 23XI and Front Row racing as “open” teams while the case proceeds.
A jury trial is scheduled to start December 1, 2025.
At a heated injunction hearing on August 28, discovery materials were aired in open court. Texts shown included NASCAR commissioner Steve Phelps writing:
“Give them the charters, pick a date and they can sign or they can lose their charters — it is that simple,” and a message from NASCAR executive Scott Prime stating, “We have all the leverage…”.
Some of Michael Jordan’s texts were also read in court; in one, discussing the cost of a driver, he wrote: “I have lost that in a casino. Let’s do it.” Outside court he said he’s prepared to take the case to trial “for the betterment of the sport.”
One day after that hearing, NASCAR told the federal court it will not issue, sell, convey or lease any additional 2025 charters while the case is pending (and no more than four additional charters for 2026).
The filing eased immediate concerns over mid-season charter transfers while the judge considers the injunction request.
Why this is in court
NASCAR introduced charters in 2016, awarding 36 charters which guarantee entry into each points race (and a larger share of payouts) in a 40-car field.
Open teams must qualify and receive less revenue. NASCAR’s own explainer and the 2016 announcement outline the framework.
23XI and Front Row argue the latest charter terms and related provisions unlawfully lock teams into NASCAR and its chosen suppliers, restrict outside competition, and include litigation-release language they say would bar them from challenging anticompetitive conduct.
Their complaint and subsequent filings frame this as monopolisation under the Sherman Act.
NASCAR says the teams forfeited any claim to six combined charters by not signing the extension, that most organisations accepted the deal, and that courts shouldn’t force NASCAR to partner with teams suing the league. NASCAR’s countersuit alleges the plaintiffs coordinated to pressure the league during negotiations.
The Fourth Circuit vacated the earlier injunction compelling NASCAR to treat the teams as chartered this season, saying the district court abused its discretion on that preliminary relief. The appeals court did not decide the overall merits, which are set for the December trial.
What happens next
- Judge Bell indicated he would rule on the renewed preliminary-injunction request in the days following the Darlington playoff opener. NASCAR’s voluntary pause on charter transfers reduces near-term urgency but doesn’t pre-empt the court’s decision.
- The case remains set for a jury trial on December 1 in the Western District of North Carolina, with further motion practice and potential evidentiary hearings expected beforehand. Key filings and the court’s docket reflect that timeline.
- NASCAR told the court it will not “issue, sell, convey, or lease” any additional 2025 charters (covering the six at issue) and capped any new 2026 charters at four, pending outcome.
