NASCAR court filings reveal high demand to buy charters from 23XI Racing and FRM: Reports

NASCAR's legal battle with 23XI Racing and Front Row Motorsports took another turn on August 19, as new filings have outlined the league's defense and its pushback against the teams' request to stay chartered for the rest of the 2025 season. The documents reportedly reveal strong outside interest in purchasing the two teams' charters and detail the argument that the current system was fair.

23XI Racing, co-owned by Denny Hamlin, Michael Jordan, and Curtis Polk, and Front Row Motorsports, owned by Bob Jenkins, filed an antitrust lawsuit against NASCAR in October 2024. They argue that the sanctioning body's control of the series, track ownership, and charter system violates competition law by restricting teams' opportunities and limiting revenue.

The governing body maintained that the system provided stability and guaranteed entry, but fell short of granting teams league ownership rights.

In July, the case reached a critical stage. A federal appeals court vacated the preliminary injunction that had allowed 23XI and FRM to hold charters. Since then, both teams have raced as open entries but remained guaranteed starting spots under updated qualifying rules. NASCAR also agreed not to sell or reassign the disputed charters until the court rules further.

Fox Sports' Bob Pockrass reported details from the new filings. On X, he wrote:

Bob Pockrass

@bobpockrass

NASCAR, in filing, says others want to buy 23XI/FRM charters. -Requests have come from existing teams, other racing teams and others -To do so requires a 30-day bidding process -That needs to start now b/c any new teams likely need to get started by Oct. 1 prepping for 2026 (2/3)

The filing underscored how charters have become valuable since their introduction in 2016. The league's position was that if 23XI and FRM could not retain their spots, there were plenty of buyers ready to step in. The sanctioning body also stressed that a sale window would need to open soon so new operations could be prepared for the 2026 season.

Pockrass also shared that NASCAR responded to the teams' arguments in the case:

Bob Pockrass

@bobpockrass

NASCAR, in filing, says 23XI/FRM mischaracterize an internal NASCAR email from during charter negotiations that says NASCAR has all the leverage. NASCAR says it chose the path of collaboration with teams that shows they believe they didn't have all the leverage. (3/3)

This point goes to the heart of the antitrust claims. The teams have said that the series' negotiating posture showed monopolistic power. NASCAR is now arguing that the email was taken out of context and that the final agreement was the product of collaboration, not coercion.

The latest response also included the broader defense of the system. Pockrass summarized in another post:

Bob Pockrass

@bobpockrass

NASCAR filed response to 23XI/FRM injunction request to be chartered for rest of year. Some nuggets: -NASCAR pays team higher % of revenue than F1 -Teams have starting spots for 2025 b/c July rule change -NASCAR wants 23XI/FRM to pay back charter $ from earlier injunction (1/3)

By pointing to Formula 1, NASCAR has tried to show that its revenue model was not only competitive but more favorable than the global benchmark series. At the same time, it reminded the court that the teams already benefit from the July guarantee of starting spots, reducing any claim of irreparable harm.

The next step will come on August 28, when the court will hold a fresh injunction hearing to determine if 23XI and FRM can remain as chartered teams for the remainder of 2025.

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How the antitrust lawsuit against NASCAR reached this stage

Steve Phelps and Joey Logano during the 2025 Hall of Fame Voting. Source: Getty

The legal dispute has unfolded in waves since September 2024. NASCAR sent teams a final charter proposal hours before a midnight deadline, and both 23XI and FRM refused to sign. Days later, they filed an antitrust lawsuit and a request for a preliminary injunction to preserve their chartered status.

The first injunction was denied in November, but a new judge, Kenneth Bell, later granted relief in December, ordering the governing body to approve charter transfers and allowing the teams to stay within the system. NASCAR’s motion to dismiss was rejected in January, setting a December 2025 trial date.

In June 2025, the Fourth Circuit vacated Judge Bell’s injunction, putting the teams back in open status. Judge Bell has since emphasized that remedies remain possible but urged all parties to consider settlement. The league, meanwhile, filed a counterclaim accusing 23XI, FRM, and Curtis Polk of collusion during negotiations.

As it stands, both teams remain on the grid, while their future in the charter system is unresolved. The district court will hear arguments again on August 28, with the full antitrust trial scheduled to begin on December 1, 2025.