

NASCAR has found itself in hot water after court documents revealed plans to issue a new 2026 charter to an unnamed team, sparking outrage among fans and teams. While officials clarified this mystery charter isn’t linked to the four Stewart-Haas Racing charters sold to 23XI Racing and Front Row Motorsports, secrecy over the recipient has raised questions about transparency. With those charters sidelined as “inactive” and others marked “non-issued” until a lawsuit is resolved, NASCAR appeared to be moving forward despite ongoing legal battles. The backlash has been swift, and amid mounting pressure from fans and teams, the organization has now taken a step back.
The courtroom saga between NASCAR, 23XI Racing, and Front Row Motorsports took a sharp turn this week. On Friday, NASCAR filed a document promising not to sell or transfer any additional Cup Series charters for the 2025 season until the antitrust lawsuit is settled. It’s a big deal, and they laid out four key commitments to cool things down.
First, they won’t mess with the rule letting up to six “open” teams race this year. Second, no new charters will be issued, sold, or leased for 2025. Third, the two Stewart-Haas charters in limbo won’t budge without court approval. And fourth, they’ll cap new charters at four for 2026 while the case is pending, leaving six slots open if 23XI and Front Row win their fight.
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This filing came hot on the heels of Thursday’s fiery hearing, where 23XI and Front Row pushed for an injunction to stop NASCAR from dealing away their charters. Their attorney, Jeffrey Kessler, argued the court needs to “preserve the status quo,” either by recognizing the teams as charter holders or blocking any transfers. NASCAR fired back, claiming the teams are the ones rocking the boat, with buyers and investors waiting to snap up charters.
NASCAR has filed a court document, saying it will not “issue, sell, convey, or lease any additional Charters” pending the conclusion of trial.
NASCAR said this makes the requested relief “moot.”
The 23XI/FRM counsel will file a response by Sept. 2 due to PACER maintenance. pic.twitter.com/4ICGz8rRt5— John Newby (@JohnNewby_) August 29, 2025
They stressed these promises aren’t a white flag, just a temporary move to keep things calm at the judge’s request, avoiding any sway over potential jurors before the December trial. NASCAR’s also asking the court to toss the injunction request, insisting 23XI and Front Row aren’t facing “irreparable harm” and should wait for the trial.
The teams aren’t buying it. In a note included in NASCAR’s filing, 23XI and Front Row said they “do not agree” that these promises fix the problem or shield them from damage. They’re gearing up to file a fuller response on September 2, once the PACER system’s back online.
NASCAR’s trying to play peacemaker, but with fans raging on Reddit about secrecy and fairness, and the trial still looming, this fight’s only getting messier. The charter system, guaranteeing race spots and TV cash, is the heart of the sport, and this filing shows NASCAR’s feeling the pressure to rethink its next move.
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Could NASCAR's charter controversy lead to a split like IndyCar's past? What's your take?
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Ghost of IndyCar’s collapse looms in this case
What started as a routine hearing in Charlotte turned into a make-or-break moment for NASCAR. Judge Kenneth D. Bell didn’t sugarcoat it: “Everybody is going to get hurt if this thing goes a certain way. If either party feels certain they’re going to win, they’re wrong.” The charter system, which locks in race entries and revenue, is under fire. Michael Jordan’s 23XI Racing and Front Row Motorsports refused to sign the latest charter deal, calling it a power grab by the France family that keeps teams financially choked.
Courtroom evidence turned up the heat. Texts and emails from Jordan and Denny Hamlin showed raw anger at NASCAR’s leadership and other teams. NASCAR’s attorney, Chris Yates, warned that a win for the teams could split the sport, much like IndyCar’s ugly CART-IRL breakup in the ’90s. Back then, open-wheel racing’s civil war tanked ratings, lost sponsors, and left IndyCar a shadow of its former self, while NASCAR soared. Yates’ fear was that a team victory could spark a rival league, fracturing fans and sponsors, and pushing NASCAR toward financial ruin.
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Jordan, speaking outside the courthouse, framed his fight as a bigger cause, “When we first started this whole process, I’ve always said that I want to fight for the betterment of the sport. Even though they try to point out that we made some money, we had a successful business, that’s not the point. The point is that the sport itself needs to continually change for the better, for the fans, for the teams, and yes, even for NASCAR. I look forward to going down firing. If I have to fight this to the end for the betterment of the sport, I will do that.”
His words carry the same fire as IndyCar’s rebels, but history shows splits can cripple a sport. Bell’s warning that a team win could make NASCAR “very different” isn’t just talk; it’s a red flag that the sport risks losing its soul. With fan outcry pushing NASCAR to pause charter moves, the December trial will decide if this is a step toward reform or a crash course to chaos.
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Could NASCAR's charter controversy lead to a split like IndyCar's past? What's your take?