NASCAR’s response to the ongoing lawsuit filed by 23XI Racing and Front Row Motorsports signals a major standoff in the stock car world as both sides await an August 28 court hearing on the teams’ motion for a preliminary injunction. Previously, 23XI and Front Row claimed in the lawsuit that NASCAR’s charter system is monopolistic. They argued that revoking their six collective charters would deal “irreparable harm” to their business, their team members, and their ability to compete.
They pushed for a court order to keep them as chartered teams while the larger antitrust case proceeds. The teams cited both financial and competitive dangers if their teams were demoted to open (non-guaranteed) status. NASCAR’s latest legal filing, made late in the evening, argues forcefully against any injunction.
Firstly, the sanctioning body contends there’s no immediate harm to the teams. Both 23XI and Front Row are still competing as open entries, with no drivers leaving, no “realistic risk” they’ll miss races. Most importantly, there is no direct evidence they’d lose key revenue or personnel.
NASCAR also states that the court cannot compel it to do business with parties it does not wish to. This is a key argument in the NASCAR lawsuit as the league stresses its right to manage team agreements independently. Another central point in NASCAR’s filing is that the teams are unlikely to succeed in legal claims alleging that NASCAR is a monopoly.
NASCAR late tonight has filed its response opposing the preliminary injunction requested by 23XI and Front Row (hearing is Aug. 28).
NASCAR opposes it on several fronts, including:
— There’s no irreparable harm to the teams because they’re running as Open cars, no driver has…
— Jeff Gluck (@jeff_gluck) August 19, 2025
NASCAR notes through President Steve Phelps that there’s strong interest from new buyers ready to compete in the Cup Series as soon as 2026. There are several “eager potential entrants” reportedly reaching out about the disputed charters. This, they say, supports the idea that the charter system is not anti-competitive or a closed market.
“Unlike the plaintiffs, many individuals and organizations, including the interested parties referenced above, view the 2025 Charters as a good investment and want to acquire them and work with NASCAR to further grow the Cup Series,” he said. Phelps’s declaration further takes aim at 23XI principal Michael Jordan, suggesting Jordan is “trying to use litigation to grant him a permanent charter that no other team has.”
NASCAR insists its current path, selling or reallocating the six charters, would do less harm to the sport than freezing proceedings. They further argue that delays would stifle new investment and threaten competitive balance, given the new media contract and financial structure set for 2025 and beyond. With the case entering a pivotal stage ahead of the playoffs, both NASCAR and the teams are entrenched. The stakes couldn’t be higher for the future of Cup competition.
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