NASCAR and the two teams it’s locked in a legal battle with, 23XI Racing and Front Row Motorsports, will be back in court in late August to argue over charters.

23XI Racing and Front Row Motorsports want to be recognized as charter teams despite not signing the 2025 charter agreement. Initially, they had that right with a preliminary injunction that was granted in December. But in June, that order was vacated, and the two organizations have raced as Open teams since Dover Motor Speedway (July 20).

The disagreement over the charter status is one piece of the puzzle, which started in September when NASCAR gave the teams a final deadline to sign the ’25 charter agreement. 23XI Racing and Front Row Motorsports chose not to do so, leaving them as the only ones of the 15 not to do so. And then it escalated a month later, on Oct. 2, when they filed a joint antitrust lawsuit against NASCAR.

How did we get here?

23XI Racing and Front Row Motorsports filed a joint lawsuit in October that alleges NASCAR violated antitrust laws and is a monopoly. In other words, NASCAR has a significant hold over all stock car racing through its strategic acquisitions, such as buying racetracks, exclusive deals, the purchase of ARCA, and ownership of the Next Gen car. All the while, the France family in particular has reaped the financial rewards.

“We share a passion for racing, the thrill of competition, and winning,” said a joint statement from 23XI Racing and Front Row Motorsports. “Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and most importantly, fans.”

Cup Series teams had gone through about a two-year negotiation process with NASCAR over the ’25 charter agreement. There were two major sticking points with the team owners: a permanent charter system and a bigger share of the revenue pie.

NASCAR seemingly made it clear that the owners would not receive permanent charters and that they are instead tied into the media rights deal. Regarding revenue, NASCAR claims that increases were made to what teams receive in the newest agreement.

What’s the big deal about charters?

The charter system was introduced in 2016, and the easiest way to break it down is to think of it as a franchise model. Cup Series teams are guaranteed entry into races and a guaranteed, stable portion of the prize money. And that prize money is more than Open teams receive.

The charter system helps ensure that when a team owner decides to unload their assets, there is value in doing so and something to be made for their investment in the sport. Consider those who have exited the sport over the last few years, and the rumored price tag on those charters.

There has been little argument that the charter system is a bad thing. 23XI Racing and Front Row Motorsports didn’t sign the charter agreement, but they are still seeking charters.

What do the teams want?

In the initial lawsuit, there weren’t many specifics or demands. But as it pertains to the charters, as explained above, 23XI Racing and Front Row not only want to race as charter teams but were among the teams that want the charter system to be permanent. But the system is what they have taken aim at when it comes to getting what they view as fair and better terms.

23XI Racing and Front Row did not like the terms of the charter agreement as they pertain to the revenue. It’s why they didn’t sign, and it has since become clear they’ve taken issue with. Well, that and NASCAR not being a monopoly.

What is NASCAR’s response?

NASCAR calls the lawsuit meritless and went as far as to say it undermines the charter system. And now, NASCAR feels they are defending a business model they never wanted.

“The teams wanted the charter system, and NASCAR went along with that request,” said Chris Yates, the league’s lead counsel. “NASCAR doesn’t need the charter system. Although it believes the charter system has strengthened the sport and benefited racing teams, it doesn’t need the charter system. NASCAR obviously operates other series… which do not have guaranteed entry. NASCAR’s history, including in the Cup Series, is one in which all teams race for entry into NASCAR races.

“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, equitable, and gives the teams the three things they wanted most.”

23XI Racing and Front Row did not sign the charter agreement, so in NASCAR’s mind, there is no longer an agreement to sign, and they don’t have any ownership over charters. As such, NASCAR doesn’t believe it can be forced into a business relationship with those they don’t want to be involved with.

NASCAR filed a counterclaim against the two teams as well as Curtis Polk, the co-owner of 23XI Racing, in March. The suit alleges that 23XI Racing and Front Row, orchestrated by Polk, engaged in conspiracy (pressured other teams, interfered with the broadcast agreement negotiations, and threatened to boycott events) and violated the Sherman Act.

NASCAR has also been adamant that they are not going to renegotiate the terms of the charter agreement.

What comes next?

The hearing over 23XI Racing and Front Row’s request for a new preliminary injunction will be heard Aug. 28. The discovery process is ongoing, and mediation between the two sides is expected to take place in August, as well.

A trial date for the antitrust lawsuit has been set to begin Dec. 1.

In the meantime, there has been no serious indication that either side has moved closer to coming to a settlement.