NASCAR vs. Its Own Teams and Fans: The Billion-Dollar War Exposing Hypocrisy

NASCAR is going nuclear. The already intense battle between the sanctioning body and 23XI Racing and Front Row Motorsports is about to go intergalactic and get real ugly. With billions on the line, NASCAR is going for the jugular.

The lawsuit in question started in October 2024, and it’s one of the biggest stories in the history of modern NASCAR right now. At issue is the charter system — a system that guarantees all Cup Series teams a share of the pie. Through court maneuvers, 23XI/FRM got approval to be a charter team in 2025 – but NASCAR has counter-attacked.

And if 23XI owner Michael Jordan wins this thing, the whole structure that’s designed to support the top teams in NASCAR could come crashing down.

NASCAR’s ‘Divide and Conquer’ Tactic

The charter system began in 2016 as a means to provide financial security to the Cup Series teams as they could buy and sell assets. 23XI Racing and Front Row Motorsports are, however, challenging the monopoly that NASCAR has over it, and now NASCAR is struggling to retain its authority.

Just one hour before the start of the Daytona 500, NASCAR filed a 68-page appeal stating that Judge Kenneth Bell was wrong to grant the teams’ charters in the first place. The appeal also states that it’s important to emphasize that mere post-signing dislike for contract’s parameters does not amount to antitrust.

But aside from the legal issue, the matter is intensifying the split within the teams of NASCAR. The Race Team Alliance which comprises the Cup Series teams had already been divided when 13 out of 15 teams signed a new charter deal in September last year. In an interview with Rick Hendrick, the owner of Hendrick Motorsports, he said, “Not everybody was happy. But in any negotiation, you’re not going to get everything you want.”

True enough, but most people expect fair play.

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NASCAR’s Threat: A League Without Safety Nets

Now NASCAR is using that divide to its advantage. Journalist Jenna Fryer reports that if 23XI and FRM win, NASCAR may scrap the charter system altogether: “Should 23XI and Front Row prevail, it is believed NASCAR will eliminate the charter system outright rather than renegotiate new charters.”

NASCAR can blow the whole thing up to stay in control. Losing charters is a death sentence for teams; many can’t even imagine operating without the money from the charter companies. These deals provide a sort of guarantee to every Cup Series race and a piece of the pie. They are also valuable — Live Fast Motorsports sold one to Spire Motorsports in 2023 for 40 million dollars. If not for this system, teams would have to go back to pre-2016. 

NASCAR is trying to portray 23XI and FRM as abnormal teams who voluntarily gave up charters and then tried to get them back when they changed their mind. The filing says other teams took better offers and 23XI and FRM had concerns, but never objected to the release clauses. NASCAR took their offers and went into the 2025 season without them and that’s when the lawsuit was filed.

NASCAR’s Contradictions in Court and Public Perception

As NASCAR battles in court, they’re also facing backlash from their own fans for their mixed messages about market competition. FOX is hyping up IndyCar’s 2025 season with big ads and big-budget promos. Meanwhile, the Daytona 500 got minimal hype. Instead of demanding equal treatment, NASCAR President Steve Phelps said, “I think FOX did a great job with the IndyCar commercials. We support IndyCar. The rise of motorsports helps us all.”

Fans aren’t buying it, calling out NASCAR for contradicting their own stance on market competition with IndyCar for sponsorships, fans, and talent. They were quick to point out the hypocrisy.

One fan on X said, “And this is the problem, @stevephelps should be insulted that not only does FOX not put anywhere close to this amount of effort into our promotion but our coverage for years on FOX has been an insult to the industry and they don’t do anything to change it.”

Another fan was even more brutal: “Enjoy bankruptcy before the next season, Steve. Your incompetence is staggering.”

As NASCAR is going against 23XI and FRM, the tension is building with fans and teams. Owners have tough decisions to make, and NASCAR’s stance on competition is raising questions. This feels like a make-or-break moment for the sport.

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