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The long-awaited legal battle involving NASCAR and two Cup Series organizations is finally on the verge of reaching the courtroom.
After more than a year of speculation throughout the garage, NASCAR, 23XI Racing, and Front Row Motorsports will head to federal court in Charlotte, North Carolina on Monday to begin the process.
Barring any last-minute developments, jury selection and opening statements are expected to begin on the first day before Judge Kenneth D. Bell.
This case, formally titled 23XI Racing and Front Row Motorsports v. NASCAR, dates back to October 2024. That was when 23XI, co-owned by Denny Hamlin and Michael Jordan, and Front Row, owned by Bob Jenkins, filed their complaint.
The teams claim NASCAR violated Sections 1 and 2 of the Sherman Antitrust Act after more than two years of negotiations for a new charter deal that was set to begin in 2025.
Much of the dispute centers on NASCAR’s track ownership structure, the exclusivity tied to sanctioning agreements, and the mandated single-supplier parts used in the Next Gen era.
Another major element involves the 2025 Cup Series charter agreement itself, which both 23XI and Front Row declined to sign.
Meanwhile, the other 13 charter-holding Cup teams did sign the agreement. Their deal aligns with NASCAR’s current seven-year media rights package that runs through 2031.
The charter contract also includes an automatic seven-year extension through 2038 and an exclusive negotiating period beyond that.
NASCAR introduced the charter system in 2016 as a cooperative effort with team owners.
The sport created 36 charters and distributed them at no cost to full-time teams with the promise of guaranteed starting spots and enhanced revenue opportunities.
“The France family started NASCAR in 1948 using their own resources, grit and ingenuity,” NASCAR Commissioner Steve Phelps said.
“They have taken countless personal and financial risks, investing billions of dollars and untold hours into growing this sport to create opportunity for teams to race in front of fans for nearly eight decades. We are proud of what we built for fans together with the race teams, especially since the charters were introduced.”
Over the last decade, the combined value of the 36 charters has grown to roughly $1.5 billion. Recent individual sales have reached about $45 million.
When NASCAR secured its nearly $8 billion television package with FOX, NBC, Turner, and Prime in 2023, teams received increased revenue as part of the upcoming charter cycle.
This was in addition to $50 million in financial contributions from NASCAR and its track partners.
In a recent court filing featuring statements from team owners who supported the new charter agreement, Hendrick Motorsports owner Rick Hendrick said the following:
“Shortly after Hendrick Motorsports signed its four charters, I made remarks to members of the press that conveyed my perspective,” Hendrick said.
“I think we worked really hard for two years and it got down to, you’re not going to make everybody happy. But in any negotiation, you’re not going to get everything you want. So I felt it was a fair deal and we protected the charters, which was number one. We got the revenue increase, I feel a lot of things we didn’t like we got taken out. So I’m happy with where we were.”
He continued with another statement.
“The Charter agreement is critical to the stability of the NASCAR ecosystem, the teams, the businesses that support us and NASCAR itself. Undoing what we have collectively negotiated will not only result in immeasurable damage to our sport and our respective businesses, it will, most importantly, hurt the people and families that depend on us for their livelihoods.”
NASCAR released its own statement responding to declarations from Hendrick and other owners including Roger Penske, Joe Gibbs, Richard Childress, and Brad Keselowski, all of whom gave depositions.
“Today’s filing demonstrates that NASCAR’s charter system has the support of race teams throughout the garage, and that the 23XI Racing and Front Row Motorsports lawsuit is not in the best interests of the sport. This lawsuit is not about antitrust; it is merely an attempt to renegotiate an agreement that was signed and is being honored by all other race teams. Together with our race team partners, we remain committed to delivering the best of stock car racing to our fans every weekend.”
Both Hendrick and Penske are listed as potential witnesses for NASCAR. Jordan is expected to testify for the plaintiffs.
Several significant rulings have already shaped how the case reached trial. In December 2024, Judge Bell approved a preliminary injunction that would have allowed 23XI and Front Row to continue racing as chartered teams while litigation continued.
The Fourth Circuit Court of Appeals overturned that decision in June.
From that point until the 2025 season finale on November 2 at Phoenix Raceway, both organizations competed as open, non-chartered teams.
Shortly after the Phoenix race, Bell dismissed NASCAR’s counterclaim that accused 23XI and Front Row of forming an illegal cartel to influence charter negotiations.
He later granted the teams’ motion for partial summary judgment and narrowed the case’s relevant market to premier stock car racing. NASCAR had pushed for a broader market definition that included other motorsports.
“While we respect the Court’s decision, we believe it is legally flawed and we will address it at trial and in the Fourth Circuit if necessary,” NASCAR said in a statement.
With these boundaries now established, the jury will begin weighing the facts when trial proceedings begin Monday.
