Just two days after the latest Cup Series race at Daytona, NASCAR revealed plans to sell charters formerly held by 23XI Racing and Front Row Motorsports to an undisclosed party.
In redacted filings, it said it had an agreement pending the outcome of an upcoming hearing, earmarked for August 28 (all times listed local).
NASCAR claimed that by not having 36 chartered teams there would be irreparable harm to the 2026 NASCAR Cup Series season. The reasons stated are redacted.
An earlier court decision forced NASCAR to recognise the teams as if they were chartered. However, that ruling was overturned and opened the door for NASCAR to begin negotiations with interested parties in the charters.
The teams are continuing to push to the court to issue a new injunction for NASCAR to recognise them as if they were chartered, which would allow them to receive dividends.
Amid threats of a sale, the teams counterclaimed, stating it would put them out of business before the scheduled trial on December 1.
“Plaintiffs will indisputably suffer irreparable harm if NASCAR is allowed to carry out its plan to immediately sell their charters to other entities before trial, because that would put 23XI and Front Row out of business following the 2025 Cup Series season,” the teams said.
“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.”
NASCAR currently holds the six charters that were split evenly between 23XI Racing and Front Row Motorsports.
NASCAR said that because the teams never signed the charter agreement and the charters were returned that it should be allowed to sell them to other interested parties.
The teams allege NASCAR wants competitors to sign one-sided charter agreements and believes it acted illegally by trying to exclude competition.
The two teams questioned NASCAR’s behaviour, stating “teams were forced to accept below competitive market prices, and have the same standing as college athletes or UFC athletes who also were forced to accept below market prices.”
The parties are due in court again later this week. The teams will seek an injunction to prevent NASCAR from selling the charters until the case is resolved. A trial is scheduled for December 1 (local time).
“Much of NASCAR’s opposition is filled with personal attacks on plaintiffs, the racing teams, Curtis Polk and anyone else who has dared to challenge NASCAR’s monopoly,” the teams said.
“None of these attacks have anything to do with the merits of plaintiff’s antitrust claims against NASCAR or plaintiff’s pressing need for a preliminary injunction.”
The fracas stems back to 23XI Racing and Front Row Motorsports electing not to sign a charter agreement with NASCAR.
In 2016, NASCAR introduced the charter system, which works in a similar way to the Teams Racing Charter used in Supercars where teams are guaranteed participation and financial incentives.
In 2024, the agreement between NASCAR and its teams was up for renewal. That proved to be a drawn out process amid a belief by teams that the dividends they received were insufficient.
When it came time to sign, 23XI Racing and Front Row Motorsports did not agree to the terms and began a lawsuit against NASCAR.
As it stands, the aforementioned teams are unchartered and race as open entries. A total of 13 teams are chartered.
The teams have gone to court over federal antitrust law violations.
NASCAR argued that it is not a monopsony as it allows teams to race in the adjacent CARS Tour, owned and operated by Dale Earnhardt Jr., Kevin Harvick, Justin Marks and Jeff Burton.
However, the teams say the CARS Tour is an amateur-level competition and no threat to NASCAR.
“The cases NASCAR cites to argue against its monopsony power are off point,” the teams stated.
“They involve markets for amateur auto clubs, dirt track racing, or an entertainment output market that have no relevance to the input market for premier stock car racing that Plaintiffs have proven in this case.
“NASCAR cannot seriously argue that dirt track or amateur racing are substitutes for the top-tier stock car teams competing in the Cup Series.”
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