“If they take our charters during this battle, how do you get them back? You can’t.” That’s Denny Hamlin, co-owner of 23XI Racing, dropping reality bombs on his podcast. And with good reason, 23XI Racing is in deep water right now as NASCAR inches toward revoking the team’s charters in a high-stakes legal standoff. The NASCAR lawsuit drama is back.
Michael Jordan’s venture, 23XI Racing, finds itself entangled in a fierce court battle, accusing NASCAR of antitrust violations over its charter system. As the season speeds on, the outcome of this lawsuit could alter the fate of one of the sport’s flashiest names, and not in a good way.
The NASCAR lawsuit is going NASCAR’s way at the moment
Last September, 23XI Racing, alongside Front Row Motorsports, shocked the racing world by rejecting NASCAR’s final charter extension deal. Saying it wasn’t fair, they filed an antitrust lawsuit, calling out the NASCAR franchise-like charter arrangement as monopolistic. A federal court initially granted a preliminary injunction in December, allowing the teams to keep racing as charter holders while suing NASCAR, until the Fourth Circuit reversed that decision in early June this year.
Tensions hit a crescendo this week. With charters said to be revoked on July 16, 23XI Racing and FRM filed for a temporary restraining order (TRO) and a new preliminary injunction, arguing their livelihoods are on the line. They claim NASCAR plans to immediately sell the charters, potentially erasing any chance of reclamation. And according to NASCAR insider Bob Pockrass, NASCAR has given a fiery response.
He posted on X: “NASCAR filed response to 23XI/FRM motion on charters. “As Judge Niemeyer said at oral argument, Plaintiffs asked to have their cake and eat it too. That is exactly what Plaintiffs ask for again in this TRO: an injunction that gives them Charter rights on their preferred terms.” NASCAR argues the teams, 23XI Racing and FRM, cannot simultaneously reject the charter system and reap the benefits, like guaranteed race entry and revenue shares. They also called the request inappropriate and unnecessary, accusing the team of more legal volleying than constructive negotiation.
NASCAR filed response to 23XI/FRM motion on charters. “As Judge Niemeyer said at oral argument, Plaintiffs asked to have their cake and eat it too. That is exactly what Plaintiffs ask for again in this TRO: an injunction that gives them Charter rights on their preferred terms.”
— Bob Pockrass (@bobpockrass) July 16, 2025
Losing charter status isn’t just symbolic; it is a financial knockout. Without it, 23XI Racing’s cars would have to qualify on speed each week, miss out on key prize money, and potentially break contracts with sponsors and drivers. And that’s why co-owner Denny Hamlin urged the courts to preserve the status quo until a full trial on December 1.
Speaking on Actions Detrimental, Denny Hamlin said, “We believe the status quo of us having our charters should not be disturbed until this is resolved on Dec. 1 in the courtroom. The reason being… we’re seeking for them to not be able to take and then sell our charters because if we prevail in December, how do you get that back? You can’t.”
NASCAR’s filing today adds a new twist: 23XI Racing and FRM have completed paperwork to race as open teams at Dover and Indianapolis, anticipating a worst-case scenario. Still, Hamlin remains confident, assuring fans they plan to compete throughout the rest of the season. But with all eyes on it, stability is wobbling.
And while 23XI’s drama still headlines, Jimmie Johnson’s Legacy Motor Club is locked in its own charter battle, this time with former Spire Motorsports executive and current Rick Ware Racing owner, TJ Puchyr.
TJ Puchyr makes bold claims against Jimmie Johnson
In April, Legacy Motor Club sued Rick Ware Racing, alleging breach of contract over charter No. 27, which was slated for sale in 2026. RWR claims the deal was actually for 2027, and the charter is already leased to RFK Racing. Now, they’ve added Puchyr to the case, accusing him of deliberately sabotaging the deal after he helped broker it and is now buying RWR himself. Legacy’s suit accuses him of an “underhanded attempt” and “personal attacks” on Jimmie Johnson.
Legacy Motor Club argued that Puchyr used privileged insider information, which was gained while acting as an independent broker for Legacy Motor Club, to derail their agreement with Rick Ware Racing for personal gain. Jimmie Johnson highlighted of fragile state of the team’s plans, noting that if the deal collapses, Legacy has no backup path forward. Puchyr fired back, saying that he didn’t think Johnson “has all the facts, doesn’t understand the deal we had, and tried to humiliate Rick publicly.”
Jimmie Johnson, back in NASCAR ownership since 2023, is clearly at odds with all this drama. He goes on to say, “It’s a big game of chess, and I’m watching all the strategy that goes into it all. I would love to see a settlement of some kind. I really don’t think that getting into a knock-down, drag-out lawsuit is good for anybody.”
Puchyr’s actions have sparked broader concerns across the NASCAR landscape, with other teams now questioning the integrity and transparency of charter transactions. Judge Daniel A. Kuehnert, overseeing parts of the case, cautioned RWR that any unauthorized dealings with the charter in question could lead to really serious ramifications. The escalating legal wrangling underscores the immense pressure and high stakes driving this battle off track.
That caused the broader tension. Multiple NASCAR lawsuits, like 23XI/ FRM vs. NASCAR and Legacy vs. RWR/Puchyr, are putting the future of NASCAR’s charter model under unprecedented legal pressure. The rulings won’t just settle individual disputes; they will be a playbook for every buy-in, lease, and sale in the NASCAR franchise system.
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