Charter System at the Heart of the Clash
The lawsuit revolved around NASCAR’s charter system, launched in 2016 to give teams greater stability with guaranteed entries into Cup Series races and a share of lucrative media revenues. But the model became a flashpoint during the 2025 contract negotiations, which 23XI and Front Row refused to sign. Their complaint alleged NASCAR twisted the original 2016 agreements into a set of anticompetitive restrictions, including track exclusivity terms and broad noncompete clauses that locked teams into NASCAR’s orbit.
Without signing the new contracts, both teams were forced to compete “open,” meaning they had no guaranteed spots, faced losing sponsors and drivers, and remained ineligible for significant payments tied to charter participation. Multiple witnesses described the leverage as overwhelming, with some testifying they felt like there was a “gun to my head” when asked to sign.
Owners Take the Stand in a Rare Public Showdown
Jordan, Hamlin, and Front Row owner Bob Jenkins all testified during the first week, detailing the financial pressure, lack of negotiating power, and what they called NASCAR’s “take-it-or-leave-it” ultimatum. NASCAR issued the contracts on Sept. 6, 2024, giving teams until midnight to sign or lose their charters. NASCAR argued the teams knew the deadline as early as Aug. 30, but several owners — including Heather Gibbs of Joe Gibbs Racing and Richard Childress of Richard Childress Racing — said the pressure tactics left little room for real negotiation.
Jordan emphasized on the stand that he would “never jeopardize NASCAR,” but insisted the 2025 terms were fundamentally one-sided.
