The NASCAR charter system has been a major focal point ever since 23XI Racing and Front Row Motorsports decided not to sign the new seven-year agreement and then ultimately file a lawsuit against NASCAR, claiming that the actions of the sanctioning body violated antitrust laws and that they, along with the France family, are operating as a monopoly.
The goal of the lawsuit was to increase the revenues and influence of NASCAR Cup Series teams, though these two teams were the only two that did not sign the agreement.
While a judge ruled that the two teams must be allowed to compete as chartered teams in 2025 and that the transfer of charters from Stewart-Haas Racing (one to each team) must not be blocked, thereby making each team a three-car team, this saga is still ongoing.
On Wednesday, NASCAR filed a counterclaim against the two teams and specifically named Curtis Polk, co-owner of 23XI Racing and longtime agent of co-owner Michael Jordan. The claim is based on the idea that Polk "willfully violated the antitrust laws by orchestrating anticompetitive collective conduct in connection with the terms of the 2025 Charter Agreements".
Their claim is that Polk took part in collusion by organizing a boycott of a charter-required team meeting and attempting to organize a boycott of a qualifying event, all to get better terms out of the agreement as it relates to "duration of the Charters and financial floors".
The charter deal is a seven-year deal which aligns with NASCAR's new media rights agreement, which is worth $7.7 billion, and there is an option to extend it for another seven years, which would run through 2038. The new agreement sees teams provided with 49% of the revenue, up from between 38% and 40% of the previous deal.
Jeffrey Kessler, the attorney for 23XI Racing and Front Row Motorsports, has since responded to NASCAR's claim.
23XI/Front Row attorney Jeffrey Kessler statement on counterclaim filed today by NASCAR. He calls it a “meritless distraction.” pic.twitter.com/TTzFeZ2Z6r
— Bob Pockrass (@bobpockrass) March 5, 2025
But the strange thing about this particular development is that NASCAR is not stopping with 23XI Racing and Front Row Motorsports.
According to AP News, NASCAR attorney Christopher Yates stated that "NASCAR doesn't need the charter system", but that it came about in 2016 because the teams fought for it.
He added that the most recent agreement "is fair and equitable", while also mentioning that it provides little benefit to NASCAR and discontinuing it entirely is not off the table.
"[Curtis] Polk and 23XI’s other owners openly professed that they wanted to change NASCAR’s economic model by demanding more money for the teams from NASCAR media revenues, instead of teams competing against each other. However, 23XI and FRM did not merely reject the terms of the 2025 Charters. Rather, those teams embarked on a strategy to threaten, coerce, and extort NASCAR into meeting their demands for better contract and financial terms."Christopher Yates, NASCAR attorney
Although this is certainly not imminent, the fact that discontinuing the charter system is even an option being presented by Yates is beyond alarming, and not just for 23XI Racing and Front Row Motorsports.
Because now the other 13 teams know it's a possibility as well.
To completely get rid of the charter system due to the ongoing frustrations of this lawsuit would be outrageous, and if NASCAR is upset with the actions of two teams now, they should be prepared for chaos if they decide to take away the system entirely.
For NASCAR to effectively say "we're just being nice, and we don't need to do that" is a major slap in the face, specifically to those other 13 teams.
And even if the charter system isn't totally abandoned, NASCAR could change it in a way that screws over those other 13 teams anyway by eliminating guaranteed starting spots.
In the filing today, NASCAR asks for an injunction eliminating guaranteed starting spots for charter teams "if Counterclaim Defendants persist in seeking to have the Charter Agreements declared as unlawful under the antitrust laws." https://t.co/QHlledYHLE
— Bob Pockrass (@bobpockrass) March 5, 2025
The charter system began in 2016 as a way to guarantee 36 cars entry into every Cup Series race, and owning a charter comes with significant financial benefits.
Due to supply and demand, charter prices have skyrocketed over the years, and this played into the decision to allow 23XI Racing and Front Row Motorsports to run as chartered teams without signing the agreement.
In 2020, the initial "long-term" deal was extended through 2024, so its expiration aligned with that of the previous media rights deal with Fox and NBC. The new deal also includes Amazon Prime Video and TNT Sports.