In a late-night filing on Monday, NASCAR submitted arguments for why a new preliminary injunction should not be granted to 23XI Racing and Front Row Motorsports.
If granted, the charters that the teams lost earlier this summer would be restored. But if the request is denied, then NASCAR would be able to sell the six charters that previously belonged to 23XI and FRM. A hearing has already been scheduled for August 28th, just as the playoffs are about to get underway.
NASCAR claims there and "many eager potential entrants” who have come forward with a desire to buy the charters, but their names have been redacted. They continue to assert that 23XI and FRM have no right to ownership over these charters due to their refusal to sign the 2025 Charter Agreement.
As for these potential buyers, the sanctioning body says if they are allowed to sell the charters, then the sport will have a "unique opportunity to bring in new teams that would delight fans and inject valuable innovation and investment into the sport. These are aspiring entrants that have a passion for motorsports, have infrastructural support behind them, and have histories of on the track success. It would benefit fans, other teams, broadcast partners, and the Cup Series generally to bring in these new teams.”
In the filing, NASCAR tries to poke holes in the major points presented by the teams over the course of this antitrust lawsuit. For example, NASCAR argues that they are not an unlawful monopoly because drivers and teams can compete in the CARS Tour, nor has the series (in the modern era) stopped a competitor from racing in another stock car racing discipline.
They also name Michael Jordan directly, claiming the NBA legend and 23XI co-owner intends to "use litigation to grant him a permanent charter that no other team has."
The legal battle over charters
The fight to keep their charters until the trial for the antitrust lawsuit begins has been a major issue over the past year. Originally, the teams were granted a preliminary injunction in December of 2024, but the Fourth Circuit Court of Appeals revoked that decision in June. Since then, the teams have been operating as open teams and have taken a significant financial hit.
In an effort to ensure they won't miss a race and to appease the courts, NASCAR has adjusted the rulebook so 23XI and FRM aren't in danger of missing any races. There will be a full field of 40 cars for the regular season finale at Daytona this weekend.
NASCAR also states that in the original 2016 Charter Agreement, NASCAR increased annual payments to teams by 28%, further increasing it by another 62% with the current agreement. They also note that NASCAR pays a higher percentage to chartered teams than Formula 1 pays to its race teams.
“If the fate of these six Charters is not resolved until after the trial concludes in mid-December 2025, it will be impossible for a new team to gear up for the 2026 season," argued NASCAR. "New owners would require more time than that to adequately prepare for the first and most significant points race of the season—the Daytona 500—scheduled for February 15, 2026. From prior experience, NASCAR estimates that a new entrant would need to begin its preparation process by no later than October 1 to ramp up for a competitive entry in the 2026 Cup Series.”
