The long-standing controversy surrounding NASCAR’s charter agreement has resurfaced, bringing renewed attention to the league’s governance and its relationship with racing teams. At the heart of the dispute is the alleged “sign it or else” ultimatum that NASCAR reportedly issued to teams concerning the 2025 charter agreement.
This controversy gained momentum when 23XI Racing, co-owned by NBA legend Michael Jordan, and Front Row Motorsports declined to sign the new charter agreement. The teams argue that the agreement contains clauses that require them to waive their rights to bring antitrust claims against NASCAR, effectively limiting their legal recourse. They contend that NASCAR, controlled by the France family, operates as a monopoly—writing the rules, owning the tracks, and taking a cut of team merchandise sales—which leaves teams with little to no bargaining power.
In response to the holdouts, NASCAR reportedly threatened to revoke the charters of teams that did not sign the agreement, a move that would effectively bar them from guaranteed participation in races. This alleged ultimatum has been criticized as coercive, with some sources describing the document as “not a signable document” due to its numerous errors and the pressure applied to teams.
The legal battle escalated when 23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR, accusing the organization of monopolistic practices. In turn, NASCAR filed a countersuit, alleging that the teams, along with Michael Jordan’s business manager Curtis Polk, formed an “illegal cartel” to pressure the organization during charter agreement negotiations.
A federal appeals court recently expressed skepticism over a preliminary injunction granted to 23XI Racing and Front Row Motorsports, which allowed them to operate as chartered teams despite not signing the agreement. Judges questioned the legal basis of the injunction, with concerns that teams cannot benefit from the contract while simultaneously challenging its terms.
As the legal proceedings continue, the outcome of this dispute could have significant implications for the future of NASCAR’s governance and its relationships with racing teams. The trial is scheduled to begin on December 1, 2025, and its results may reshape the dynamics of power and fairness within the sport.
