As NASCAR continues negotiating a new charter agreement with its Cup Series teams, tensions have boiled over into a legal standoff. 23XI Racing and Front Row Motorsports have taken a bold step in their push for greater financial transparency, issuing subpoenas to major sports leagues—including the NFL, NBA, MLB, NHL, and MLS—in an effort to uncover how those organizations compensate their teams.
The core of the dispute stems from how NASCAR distributes its revenue and the role of team charters, which are not currently permanent. Teams have long argued they need a more sustainable economic model, including a larger and more consistent share of league-generated revenue. Now, 23XI and Front Row are seeking documentation from the other leagues that could strengthen their argument that NASCAR teams deserve a larger cut.
According to sources familiar with the situation, the subpoenas ask for specific details on what the leagues pay their teams, along with what percentage of total league revenue those payouts represent. If the leagues do not comply voluntarily, 23XI and Front Row intend to escalate the matter to court to enforce the subpoenas.
This aggressive legal strategy signals growing frustration among some NASCAR teams as talks about charter permanence and revenue sharing have stalled. While most NASCAR teams operate as independent businesses—relying heavily on sponsorship dollars—the comparison to franchise-based models in other major leagues has become a focal point.
23XI Racing, co-owned by NBA legend Michael Jordan and driver Denny Hamlin, and Front Row Motorsports, a longtime independent team, are leading this push. Their argument is clear: if NASCAR wants to build long-term stability and attract new investment, it must offer teams a financial model that mirrors the predictability and revenue-sharing mechanisms of other top-tier sports leagues.
NASCAR has not publicly responded to the subpoenas or the threat of legal action, but insiders say the sanctioning body views this as a power play during increasingly tense negotiations.
With the current charter agreement set to expire at the end of the 2024 season, this latest move could prove pivotal in reshaping how NASCAR’s top division operates in the years to come.
