NASCAR Could Eliminate Charter System if They Lose Antitrust Lawsuit

What’s Happening?

Wednesday night, NASCAR filed a 68-page brief in its appeal of the Dec. 18 injunction allowing 23XI Racing and Front Row Motorsports to race as chartered teams in 2025. However, a following report suggests that even if the teams win their lawsuit, they are unlikely to have those Charters.

• Following the brief from NASCAR brief, Jenna Fryer of AP Sports published an article containing a notable piece of information. “Should 23XI and Front Row prevail, it is believed NASCAR will eliminate the charter system outright.”
• Charter ownership is a key part of this lawsuit. FRM and 23XI’s owners are outspoken in their belief that the contractual system should be permanent. What Fryer is stating could be interpreted as NASCAR getting rid of the system and beginning a new one, or simply scraping the system and concept as a whole.
• While the system is not perfect, it allows 36 chartered entries to automatic qualification for NASCAR Cup Series points races and a share of revenue with NASCAR. Teams are now limited to owning three, formerly four, Charters; in 2023, one charter sold for a reported $40 million.
• If NASCAR were to abolish this system, the combined 15 Charter-owning teams would be out of this money and the benefits of owning a Charter. Other methods of making money off Charters include selling or leasing; some teams have done this in the past, flipping these charters for a profit as their values skyrocket.

Background

• The two teams filed this lawsuit in October following their refusal to sign the 2025 NASCAR Charter Agreement. In doing so, the teams risked losing their then-four Charters and a Charter each had agreed to purchase from the shuttering Stewart-Haas Racing.
• On Dec. 18, the teams won the right to keep their current charters and acquire their new ones for the duration of the lawsuit. NASCAR is currently appealing this decision
• We have covered this lawsuit extensively via the article below.

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