“It’s false”: NASCAR counsel calls out ‘another misconception’ amid Michael Jordan led-23XI legal suit

NASCAR attorney Chris Yates has addressed a major "misconception" regarding the deadline given to teams for signing the new charter agreement last year. Having recently countersued Michael Jordan-owned 23XI Racing, Front Row Motorsports and Curtis Polk, Yates clarified the negotiation timeline.

After 13 of the 15 Cup teams signed the new charter agreement on September 6, 2024, reports circulated that teams were given just six hours to sign the agreement or risk losing their charters. Veteran team owner Richard Childress stated that teams had less than a six-hour window on September 6 to sign the agreement.

NASCAR outside counsel Chris Yates refuted the claims made by team owners, clarifying that the new charter agreement had been in negotiation for over two years and was built upon the original deal signed in 2016. He stated that teams received the final version on August 30, with a deadline of September 6 set due to the fast-approaching playoff season.

According to Adam Stern from Sports Business Journal, Yates said:

"There's another misconception out there, which a variety of people have harped on, including on podcasts, which is supposedly teams only had one hour to sign the 2025 charter. It was a 100-page document, and they couldn't read it in that amount of time."

"That's just wrong. It's false. The 2025 charter was built upon the 2016 charter and was negotiated for over two years. Drafts went back and forth. Teams represented by a very large Washington, D.C. law firm. Many drafts went back and forth. Teams got the best and final version from NASCAR on August 30th. NASCAR said, We're approaching the end of the season and we need to move forward, need to know who's going to sign the charters, need to begin planning for the 2025 season. So, September 6th is the deadline," he added.

Yates said that 23XI Racing and Front Row Motorsports had requested additional time beyond the deadline, which the sanctioning body granted. He dismissed the narrative that teams were pressured into signing the agreement at the 11th hour.

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NASCAR files injunction aiming to remove guaranteed starting provision

NASCAR's recent counterclaim against 23XI Racing and Front Row Motorsports was targeted at Michael Jordan's longtime ally and business partner, Curtis Polk. The sanctioning body accused Polk of violating antitrust laws during the negotiation period by orchestrating boycotts and employing other tactics.

In the counterclaim, the sanctioning body also filed an injunction seeking to eliminate the guaranteed starting provision for chartered teams. Chris Yates told the media that the sanctioning body could do without the charter system but maintained that the recent agreement was fair and equitable for all teams.

"Although it believes that the charter system has strengthened the sport and benefited racing teams, it doesn't need the charter system... NASCAR's history, including in the Cup Series is one in which all teams raced for entry into NASCAR races," Yates was quoted by Fox Sports.

"But NASCAR does believe that the most recent charter agreement, which was signed by 13 of 15 race teams representing 32 of 36 charters, is fair [and] equitable," he added.

According to Yates, teams receive 49% of the revenue from the new $1.1 billion per year media rights deal, and he stated that the sanctioning body has no intention of renegotiating the terms. Meanwhile, Michael Jordan's attorney, Jeffrey Kessler, called the countersuit a "meritless distraction".