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NASCAR has tapped the brakes on its lucrative charter system, agreeing not to sell any charters this season and capping sales next season as it stares down an antitrust lawsuit in North Carolina federal court. The high-octane legal fight pits NASCAR against two powerhouse challengers — Front Row Motorsports and 23XI Racing, the team co-owned by NBA icon Michael Jordan and racing star Denny Hamlin. A trial is set for December, promising a dramatic showdown over the future of stock car racing.

Charters act like golden tickets in the racing world, guaranteeing teams entry into Cup Series races and securing them a slice of revenue. For teams locked out, the stakes are nothing short of survival.

Court Pressure Forces NASCAR’s Hand

In a filing Friday, NASCAR told the court it would halt charter sales for the 2025 Cup Series and issue no more than four for the 2026 season. The move follows a tense Thursday hearing, where U.S. District Judge Kenneth Bell warned that granting or denying a preliminary injunction would essentially signal whether the plaintiffs were likely to win on the merits — a message he said he was hesitant to deliver with trial so close.

NASCAR framed the pause as a strategic move to “focus on growing the sport for 2026” and prepare for the trial, while emphasizing it was not conceding wrongdoing. Currently, 30 active charters exist, along with two inactive ones tied to the very teams suing NASCAR.

Teams Push Back, Citing Irreparable Harm

But attorneys for the teams weren’t swayed. Jeffrey Kessler of Winston & Strawn LLP, representing Front Row and 23XI, insisted NASCAR’s temporary freeze does little to cure the immediate harm the teams face. Without charters, they warned, their businesses could collapse.

“Plaintiffs further do not agree that defendants’ notice and representations demonstrate plaintiffs face no irreparable harm,” Kessler said, doubling down on the urgency.

The teams argue NASCAR’s grip is suffocating — restricting access to racetracks, forbidding chartered teams from competing outside its circuit, and enforcing rigid technical regulations.

From Courtroom Barbs to Trial Drama

The litigation has become as heated as the track itself. Judge Bell has already scolded attorneys on both sides for trading barbs and making personal digs, warning them to rein in the animosity before a jury takes its seat.

“I’m not going to let your animosity for each other inconvenience me,” Bell told the courtroom, cautioning that his patience won’t extend into trial.

The case hinges on whether NASCAR’s charter system — first adopted in 2016 and renegotiated in recent years — crosses the line from business model to monopoly. The outcome could reshape not just NASCAR’s future but the entire business of stock car racing in the U.S.

Front Row Motorsports and 23XI Racing are represented by Jeffrey L. Kessler, Danielle T. Williams, Jeanifer Parsigian, Michael P. Toomey and Matthew R. DalSanto of Winston & Strawn LLP.