The world of American motorsports is bracing for a seismic shift as Michael Jordan’s 23XI Racing and Front Row Motorsports square off against NASCAR in a high-stakes federal antitrust trial that kicked off in Charlotte, North Carolina, on December 1, 2025. The case, already being dubbed one of the most consequential legal battles in NASCAR’s storied history, centers around the controversial charter system introduced in 2016—a system the plaintiffs claim has cemented NASCAR’s monopoly over premier stock car racing and stifled fair competition.
At the heart of the dispute are the so-called charter agreements, NASCAR’s unique answer to the franchise models seen in other major sports leagues. These agreements guarantee a team’s entry into all 38 Cup Series races and assure a defined payout from the weekly purse. But here’s the catch: the charters are renewable and revocable, not permanent, and the teams say the revenue model just doesn’t add up. According to 23XI Racing co-owner Curtis Polk, losing a charter would mean a $24 million drop in annual revenue for the team. That’s not pocket change—even for a team backed by basketball legend Michael Jordan and three-time Daytona 500 winner Denny Hamlin.
The root of the legal battle stretches back more than two years, when all 15 charter-holding teams began negotiating for a more favorable extension to the agreement. The teams pushed for permanent charters, a larger share of NASCAR’s booming revenues, and a seat at the table when it comes to governance. But when NASCAR presented its final offer in late 2024, only 13 teams signed on the dotted line. 23XI and Front Row refused, instead launching an unprecedented antitrust lawsuit that has now landed both sides in federal court.
The judge presiding over the case, Kenneth D. Bell, has already ruled that NASCAR holds a monopoly over the market for premier stock car racing. That’s a big deal, but it’s not the end of the story. Possessing a monopoly isn’t illegal by itself—the jury now has to decide whether NASCAR abused that power to the economic detriment of its teams. If the jury sides with 23XI and Front Row, the ramifications could be immense: NASCAR might be forced to sell off its racetracks, overhaul or even dismantle the current charter system, and potentially loosen the France family’s iron grip on the sport.
The teams’ arguments are wide-ranging and paint a picture of exclusionary conduct. They allege that NASCAR’s ownership of most race tracks, exclusive agreements that block rival series from those venues, and bans on Cup Series cars competing elsewhere all serve to choke out competition. The acquisition of the ARCA series is also cited as a move to squash potential upstarts. The complaint further claims that the current system’s lopsided purse structure makes it financially unviable for teams to operate as “open” entries—those without charters—since they miss out on guaranteed revenue and assured starting spots.
NASCAR, for its part, has pushed back hard. The France family, who have steered the sport for 76 years, argue that the organization’s business practices are above board and that the recent charter agreement actually increased payouts to teams. They point to the option for teams to participate as open entries—though that’s cold comfort for outfits like 23XI and Front Row, who say the math simply doesn’t work. In fact, financial records revealed during the trial show that Cup Series teams lost more than $1 million per car, on average, from 2021 to 2024. Even 23XI, which posted average annual profits of $2.2 million between 2021 and 2023, swung to a $2.1 million loss in 2024.
As if the stakes weren’t high enough, the discovery process has peeled back the curtain on a world of behind-the-scenes drama that’s left both sides with bruised egos and reputations. Internal communications unearthed during the trial have exposed NASCAR executives disparaging team owners and expressing open hostility toward rival series like the Superstar Racing Experience (SRX). In one exchange, NASCAR’s then-president Steve Phelps referred to Hall of Famer Richard Childress as a “stupid redneck who owes his entire fortune to NASCAR” and suggested he should be “taken out back and flogged.” Another executive, Steve O’Donnell, fumed about the SRX series, saying, “This is NASCAR. Pure and simple. Enough. We need legal to take a shot at this.”
The mudslinging wasn’t limited to NASCAR brass. On the teams’ side, 23XI president Steve Lauletta was found to have said that NASCAR chairman Jim France dying “is probably the answer” to resolving the charter dispute. Denny Hamlin, never one to mince words, admitted his “despise of the France family runs deep.” Even Michael Jordan himself got in on the action, reportedly calling Joe Gibbs Racing and other teams that signed the charter agreement less-than-flattering names in private messages. The fallout from these revelations has only intensified the glare of public scrutiny and deepened the rift between NASCAR’s leadership and its competitors.
Financial documents presented at trial have further fueled the controversy. NASCAR reported a profit of $102.6 million on $1.7 billion in revenue in 2024, with more than $100 million in annual distributions flowing to the France Family Trust. Meanwhile, Cup Series teams have struggled to break even, let alone thrive. The new charter deal offers an average payout of $12 million per car—up from $9.7 million previously—but teams say they need $20 million per car just to stay afloat. Front Row, for example, was among the teams that lost money while racing, highlighting the financial squeeze many organizations face.
Despite a court-ordered arbitration session in August and a subsequent round of settlement talks in October, the warring parties couldn’t find enough common ground to avoid trial. Both sides dug in, and as the trial began, Hamlin took to social media to declare, “Our fans have been brainwashed with (NASCAR’s) talking points for decades. Lies are over starting Monday morning. It’s time for the truth. It’s time for change.” NASCAR Commissioner Steve Phelps countered that the series had made every effort to settle, but ultimately, the battle lines were drawn.
As the trial unfolds, the future of NASCAR hangs in the balance. If the jury finds in favor of 23XI and Front Row, the sport could be forced to reinvent itself in ways that were unthinkable just a few years ago. Even if a settlement is reached mid-trial, the damage to NASCAR’s reputation—and the trust between its leadership and teams—may take years to repair. For now, all eyes are on Charlotte, where the fate of American stock car racing is being decided, one argument at a time.
With the action in federal court still ongoing, the motorsports world waits with bated breath to see whether the outcome will spark a new era of transparency and fairness—or leave the sport’s power structure unchanged but battle-scarred.
