NASCAR has filed countersuits against Front Row Motorsports (FRM) and Michael Jordan’s 23XI Racing team due to their refusal to sign the 2025 Charter Agreement. Earlier, FRM and 23XI had sued NASCAR, accusing the contract of being anti-competitive and monopolistic. In response, NASCAR accused the two teams of collaborating to pressure the organization through a media campaign, a claim made by Curti Spoke, a long-time associate of Michael Jordan and co-owner of 23XI.
In September, NASCAR set a deadline for the teams to sign the updated contract, warning that failure to comply could result in losing their charter rights. Except for FRM and 23XI, all other teams have signed the agreement. The charter system ensures teams guaranteed entry to most NASCAR Cup Series races and more revenue compared to non-charter teams. Charters can be sold on the open market if teams shut down or downsize. Before this system, teams shutting down only retained their physical assets like buildings and parts.
The previous charter contracts expired at the end of 2024. Ahead of NASCAR’s current TV deal that began this season, teams have been pushing for a higher percentage of TV revenue, noting that the cost of running a Cup Series team has risen annually while many longtime sponsors have left the sport. NASCAR controls many trucks and a significant share of TV revenue, and there are cuts expected there too.
By not signing the charter agreement, FRM and 23XI forfeited their right to operate as charter teams in 2025, but they were granted an injunction to continue for this season while the lawsuit unfolds. During the 2024 season, negotiations indicated that NASCAR’s licensing group believed it held all the power, as confirmed by a NASCAR lawyer in a recent call.
The France family, which owns NASCAR, has long ruled with a firm grip. Bill France Sr. once blocked drivers from forming unions, and unlike other major U.S. sports leagues, NASCAR has no collective competitors association. Jim France, now 80, is the current chairman, having taken over after his brother Bill France Jr. and nephew Brian France led the organization.
Fan Take: This legal battle highlights the ongoing tension between NASCAR’s governing body and its teams over revenue and control, which could reshape the sport’s financial and competitive landscape. Fans should watch closely, as the outcome could influence team stability and the future growth of NASCAR racing.
