Team owners seek swift and amicable resolution to ongoing litigationWhile supportive of Nascar, majority of team owners hint at desire for permanent chartersTrackhouse, Spire, Kaulig and Haas did not supply statements
Nascar has gathered statements from ten chartered Cup Series teams in its latest effort to convince a federal judge to rule in its favour ahead of its lawsuit with 23XI Racing and Front Row Motorsports (FRM) going to court.
The latest motion effectively asks the judge to rule on the lawsuit without a jury, which remains an option ahead of the December court date.
In support of this goal, the majority of teams submitted statements supporting a swift resolution to proceedings, although many also expressed a desire for their charters to become permanent in the future. Nascar asked each team to submit a statement.
Among these were Joe Gibbs Racing owner Joe Gibbs, who offered support for one aspect of the argument presented by 23XI Racing and FRM.
“I think that the charter system has created equity value, though it is imperative that the equity value become permanent,” he said.
“I have repeatedly expressed my strong desire for the charter system to become permanent in nature, and I continue to hold out hope that will one day be the case. Doing so would, in my view, solidify the financial health and well-being of the Cup teams and the sport as a whole.”
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Part of this ongoing lawsuit is a desire for permanent charters, something that drives 23XI Racing and FRM’s accusation of monopolistic practices by the governing body.
What all the teams agree on is that losing the charter system entirely would have catastrophic consequences. Rick Hendrick of Hendrick Motorsports said: “The charter agreement is critical to the stability of the Nascar ecosystem.”
That stance was supported by Richard Childress of Richard Childress Racing, who said: “Given the challenging business model and economics that Cup Series team owners face, charters are essential to creating enterprise value for teams.”
Roger Penske said that he signed the new charter agreement because he felt “Nascar was not going to move any further on their document and it was time for our team to go forward”. Penske rolled out his own charter system in the IndyCar Series, emphasising his support for the framework.
The likes of Trackhouse Racing, Spire Motorsports, Kaulig Racing, and the Haas Factory Team did not submit statements.
In response, 23XI Racing and FRM attorney Jeffrey Kessler welcomed the tone of the team statements.
“The declarations submitted by the various teams are supportive of my clients’ position,” he said. “My clients are not, and never have been, seeking to eliminate the charter system.
“They have supported charters because teams cannot survive without them. The declarations from team owners and executives acknowledge this same economic reality. Nor do they excuse Nascar’s anticompetitive conduct or its unlawful monopoly, points 23XI and Front Row have maintained from the start.
“Many teams have expressed a desire to resolve this matter, a goal my clients share, but Nascar has yet to demonstrate a similar willingness to engage in meaningful resolution.
“We are confident Nascar’s summary judgment motion is not going to succeed. This lawsuit has always been about making Nascar more competitive and fair for the benefit of drivers, sponsors, teams, and fans who love the sport. Nascar’s new motion changes nothing and we look forward to presenting our case at trial on 1st December.”
Denny Hamlin, co-owner of 23XI Racing, also offered his thoughts on Nascar’s latest response after last weekend’s race at the Charlotte Roval.
“Nothing surprised me,” Hamlin said. “I didn’t think it was super helpful for them. Honestly, I thought it was more helpful for us. Obviously, as [the team owners all] said, they were asked to do it.”
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As the ongoing litigation becomes increasingly messy, it’s difficult to predict who will emerge victorious once this eventually goes to court.
Understandably, teams have voiced their concerns about a future without the charter system, although this is not something that 23XI Racing or FRM have ever advocated for.
Each team owner has underlined that not signing the charter agreement would have threatened their financial viability and, by extension, the livelihoods of the families who depend on them.
The overwhelming sentiment across most of the statements is that the agreement was signed due to a lack of better options. No one involved wants the court case to have a negative impact on Nascar’s future but, reading between the lines, the teams appear united in their desire for permanent charters.
