The antitrust lawsuit case between 23XI Racing and Front Row Motorsports versus NASCAR continued this week, and it was highlighted by a fiery war of words during court hearing on Thursday (Aug. 28), as the teams pleaded their case for an injunction to allow them to compete as teams under the 2025 charter agreement and to prevent NASCAR from selling the charters to prospective buyers.
Here’s a breakdown of what happened this week.
- On Aug. 25, NASCAR announced its intentions to the court that it would issue a charter to an unnamed team for the 2026 season. The charter would not be one of the two that Stewart-Haas Racing sold to 23XI & FRM (NASCAR views those charters as “inactive”), but rather one of the four, in NASCAR’s words, “non-issued” charters previously possessed by 23XI & FRM.
- The teams have stated that they will have to cease operations after 2025 if the charters are sold or reissued: “This court has already found that it is not economically viable to race as open teams on a long-term basis … and NASCAR did not challenge that finding on appeal.”
- The teams have stated that they will have to cease operations after 2025 if the charters are sold or reissued: “This court has already found that it is not economically viable to race as open teams on a long-term basis … and NASCAR did not challenge that finding on appeal.”
- The two sides met on Thursday in U.S. District Court in Charlotte, N.C., for a hearing presided by Judge Kenneth D. Bell. The teams sought an injunction to reinstate their chartered status for the remainder of the 2025 season and to prevent NASCAR from selling the charters.
- During the hearing, the following information was uncovered:
- While the Cup Series field currently has 36 charters, NASCAR has the ability to raise that number up to 40.
- When questioned why NASCAR couldn’t increase the number of charters, NASCAR’s attorney Chris Yates stated that raising the number of charters would be detrimental to the teams, and that “scarcity drives value.”
- When questioned why NASCAR couldn’t increase the number of charters, NASCAR’s attorney Chris Yates stated that raising the number of charters would be detrimental to the teams, and that “scarcity drives value.”
- The unnamed team(s) looking to obtain a charter have been seeking one for years.
- If the former 23XI & FRM charters are sold, the teams will be reimbursed with the amount of money they were originally purchased for.
- NASCAR was concerned about the rise of LIV Golf as a competitor to PGA in 2022 and brainstormed ideas to prevent such a split.
- One document showed that NASCAR had contemplated buying Speedway Motorsports, Inc.
- Another document detailed the gold codes, a scenario where NASCAR would own every team.
- While the Cup Series field currently has 36 charters, NASCAR has the ability to raise that number up to 40.
- Team attorney Jeffrey Kessler provided documents and messages to argue that NASCAR used its power to strongarm the teams into the signing the agreement last summer.
- NASCAR Chief Strategy Officer Scott Prime was quoted in one message as saying “We have all the leverage. They’ll have to sign what we put out.”
- NASCAR President Steve Phelps was quoted as saying to “pick a date and they can either sign or lose their charters. It is that simple.”
- NASCAR Chief Strategy Officer Scott Prime was quoted in one message as saying “We have all the leverage. They’ll have to sign what we put out.”
- Yates responded with documents showing concessions NASCAR had made to the teams in further negotations throughout the summer of 2024.
- Revealed were conversations between 23XI co-owners Curtis Polk and Michael Jordan that admitted they weren’t hurting financially.
- Also included was a conversation where Polk believed that they belief that had no leverage was a “myth,” and that 16 teams working together were stronger than NASCAR.
- Yates argued that that the 13 other teams wouldn’t have signed the 2025-31 agreement if it was such a bad deal for the teams.
- Revealed were conversations between 23XI co-owners Curtis Polk and Michael Jordan that admitted they weren’t hurting financially.
- Tensions between the two sides have reached a boiling point, and NASCAR presented messages exchanged between members of 23XI ownership that showed growing animosity toward the sanctioning body.
- Denny Hamlin said in one text message that his hate for the France family “runs deep.”
- When pondering what the best investment path was, 23XI President Steve Lauletta said that “being in the long haul and Jim (France) dying is probably the answer.”
- Text messages from Sept. 7, 2024, revealed that Michael Jordan had called other owners “fuckers” and “pussies,” for signing the 2025-31 charter agreement, believing that other teams will “regret not joining us.”
- NASCAR claimed that they no longer have any interest in doing business with the teams and that they can’t be forced to do so either. Kessler refuted this, stating that NASCAR had asked Bubba Wallace to appear on Good Morning America to promote the upcoming playoffs.
- Denny Hamlin said in one text message that his hate for the France family “runs deep.”
- The hearing concluded with following statements before adjournment:
- Judge Bell recommended that both sides reach a settlement before the case goes to trial on Dec. 1, warning of the possible consequences.
- A loss for the teams could result in their entire operations getting shuttered. A loss for NASCAR could potentially force them to sell tracks, restructure the charter agreement and/or more.
- A loss for the teams could result in their entire operations getting shuttered. A loss for NASCAR could potentially force them to sell tracks, restructure the charter agreement and/or more.
- Bell also told the teams to think about a prospective Charlotte jury and the people that would be serving on the bench.
- Bell: “There is way too much (information) sealed. It will all get unsealed (in December).”
- Bell: “Everybody is going to get hurt if this thing goes a certain way. If either party feels certain they’ll win, they’re wrong.”
- Judge Bell recommended that both sides reach a settlement before the case goes to trial on Dec. 1, warning of the possible consequences.
- Jordan left the courthouse and gave the following statement:
- “I’ve been a fan of the game for a long period of time. When we first started this whole process, I always said I wanted to fight for the betterment of the sport. … The sport itself needs to continually change for the better for the fans as well as for the teams, as well as for NASCAR, too, if they understand that. I feel like we made a good statement today about that, and I look forward to going down with the fire. If I have to fight this to the end, for the betterment of the sport, I will.”
- No injunction decision was reached by the conclusion of Thursday’s hearing.
- On Friday (Aug. 29), one day after the hearing, NASCAR filed a motion that they would hold six charters in reserve for 23XI & FRM in the event that they win the lawsuit.
- The filing stated that NASCAR won’t “issue, sell, convey, or lease any additional Charters for the 2025 Cup Series season” and it won’t “issue, sell, convey, or lease more than four additional Charters for the 2026 Cup Series season.”
- The filing stated that NASCAR won’t “issue, sell, convey, or lease any additional Charters for the 2025 Cup Series season” and it won’t “issue, sell, convey, or lease more than four additional Charters for the 2026 Cup Series season.”
- With NASCAR’s end-of-week motion declaring it won’t sell the charters (the threat of NASCAR selling the charters was a key reason for the teams’ decision to seek an injunction), Judge Bell will reevaluate the teams’ request for an injunction and will likely made said ruling sometime next week.
Stephen Stumpf is the NASCAR Content Director for Frontstretch and is a three-year veteran of the site. His weekly column is “Stat Sheet,” and he formerly wrote "4 Burning Questions" for three years. He also writes commentaries, contributes to podcasts, edits articles and is frequently at the track for on-site coverage.
Find Stephen on Twitter @stephen_stumpf