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Tag Archives: NASCAR

Fights over charters loom over NASCAR as teams, series await key court rulings

Fights over charters loom over NASCAR as teams, series await key court rulings

By JENNA FRYER AP Auto Racing Writer

CHARLOTTE, N.C. (AP) — It’s the summer to sue in NASCAR, the sport where the on-track bumping and banging is in danger of being overshadowed by the action in the courtroom.

Two teams — one owned by retired NBA great Michael Jordan — are suing NASCAR over antitrust allegations. 23XI Racing and Front Row Motorsports are awaiting a federal court ruling before Sunday’s race in Delaware that could impact their ability to compete.

Meanwhile, seven-time champion Jimmie Johnson is battling tiny Rick Ware Racing and his lawyers at Legacy Motor Club went hard at Ware’s attorneys in a Monday hearing.

What is all the fighting about? Charters, which are at the heart of NASCAR’s business model. Having one is vital to a team’s survival.

The legal wrangling is only making the the charters skyrocket in value. When Spire Motorsports debuted in 2019, it had bought a charter for $6 million. Now, one of Spire’s founders brokered the now-disputed deal for Ware to sell one of his two charters to Legacy for $45 million.

Johnson is not enjoying the legal brawling, including the higher-profile antitrust fight. He called on those parties to settle.

“I’m just sitting back watching it all play out, learning a lot about the legal process and the amount of injunctions and appeals that can take place,” Johnson said. “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.”

The NASCAR lawsuit

23XI and FRM filed a federal antitrust suit against NASCAR last year after they were the only two organizations out of 15 to reject NASCAR’s extension offer on charters.

The case has a Dec. 1 trial date, but in the meantime, the two teams are fighting to be recognized as chartered for the current season, which has 16 races left. A charter guarantees one of the 40 spots in the field each week, but also a base amount of money paid out each week.

Jordan and FRM owner Bob Jenkins won an injunction to recognize 23XI and FRM as chartered for the season, but the ruling was overturned on appeal earlier this month. Both teams were set to be stripped of a combined six charters on Wednesday, which would force them to compete as “open cars.”

Three-time Daytona 500 winner Denny Hamlin co-owns 23XI with Jordan and said they are prepared to send Tyler Reddick, Bubba Wallace and Riley Herbst to the track each week as open teams. But they still filed for a restraining order Monday and claimed that through discovery they learned NASCAR upon revocation planned to immediately begin the process of selling the six charters which would put “plaintiffs in irreparable jeopardy of never getting their charters back and going out of business.”

NASCAR said it has asked multiple times for settlement proposals but heard nothing. NASCAR also has no intention of re-negotiating the charter agreements held by 30 other teams.

Jordan has the money to keep 23XI running without charters, but FRM doesn’t have the same level of funding. Additionally, if the teams aren’t chartered, they will have to qualify on speed each week to make the field.

It won’t be an issue this weekend at Dover as fewer than the maximum 40 cars are entered. But should 41 cars show up anywhere this season, someone slow will be sent home.

“We’re not worried because our cars have the speed. We’ve always said we’re racing no matter what. If we have to race open, we have to race open,” Hamlin said at Sonoma Raceway last weekend. “We worked to get an injunction and obviously feel like Dec. 1 is all that matters.”

Legacy vs. RWR

This case is actually a dispute over agreed-upon terms for Ware to sell one of his two charters to Johnson and his partners at Knighthead Capital Management.

Ware this season is leasing a charter to RFK Racing and was already under agreement with that team to get the charter back in 2026, then lease RFK its second charter next season. He never had a charter to sell for 2026 unless he ceased operations.

Yet when he signed the contract with Legacy, Ware has said, he didn’t read it through and catch that the sale terms were for next season and not 2027, when he’d have both charters in his possession.

RWR is alleging Legacy pulled a bait-and-switch, and if true, it is on Ware for not seeing it in the contract he signed.

The curveball came when T.J. Puchyr, the Spire co-founder who now acts as a consultant and brokered the deal between Legacy and Ware, said last month he plans to buy Ware’s team. Legacy argued in court Monday it was blindsided by the news, that if Ware is selling then the charter rightfully belongs to them, and they urgently needed depositions before Ware sold his race team out from under them.

It didn’t help when Ware’s lawyers couldn’t answer questions about a potential sale: “I think you need to talk to your client,” the judge told them before warning Ware may be in contempt of court and ordering depositions for later this week.

Ware, meanwhile, apparently accepted the Legacy offer for his charter despite a second bid of more than $50 million from another party. With NASCAR indicating through discovery in the 23XI/FRM suit that it has interested buyers for the six charters, it is a seller’s market.

Johnson, with financial backing from Knighthead, is certain he will be getting the Ware charter one way or another to expand Legacy to three full-time Cup Series drivers.

“I’m not sure there is a plan B,” Johnson said of his confidence level at winning the case.

NASCAR teams 23XI and Front Row seek urgent court order to retain charters

NASCAR teams 23XI and Front Row seek urgent court order to retain charters

The two race teams suing NASCAR over antitrust allegations filed for a temporary restraining order and preliminary injunction to be recognized as chartered organizations for the remainder of 2025. 23XI Racing and Front Row Motorsports are locked into a lengthy legal battle over the charter system, which is the equivalent of the franchise model in other sports. The case is winding its way through the court system but now with urgency: the teams are set to lose their charters Wednesday and in the latest filing, they allege NASCAR has indicated it will immediately begin the process of selling the six tags that guarantee entry into every race as well as monetary rewards and other benefits.… Continue Reading

Future of NASCAR’s downtown Chicago weekend is unclear going into the third year of contract

Future of NASCAR’s downtown Chicago weekend is unclear going into the third year of contract

CHICAGO (AP) — When it comes to NASCAR’s return to downtown Chicago, Julie Giese has a long list of responsibilities. The track president is monitoring an ambitious construction schedule for the street course, to go along with everything else that goes into the busy weekend. What happens next is going to have to wait. The future of NASCAR in Chicago is murky going into its third edition. The three-year contract that was announced in 2022 has two mutual options. Giese says there have been “good conversations” between NASCAR and the city, and there is time to work on the possibilities beyond the event.… Continue Reading

Home-state favorite Chase Elliott passes Brad Keselowski on final lap to win NASCAR Atlanta race

Home-state favorite Chase Elliott passes Brad Keselowski on final lap to win NASCAR Atlanta race

HAMPTON, Ga. (AP) — Home-state favorite Chase Elliott passed Brad Keselowski on the final lap and won the the crash-filled NASCAR Cup Series at Atlanta on Saturday night for his 20th career victory. Elliott, the popular driver from Dawsonville, Georgia, earned a spot in the NASCAR playoffs with his first victory since April 2024 at Texas. It was his first win in Atlanta since 2022. The race’s second crash early in Stage 2 took out many of the sport’s biggest names and left others with damaged cars. Pole-winner Joey Logano, who led the first 36 laps before light rain forced the first caution, was among the many drivers caught up in the big crash. Keselowski was second, followed by Elliott’s Hendrick Motorsports Chevrolet teammate, Alex Bowman.… Continue Reading

Judge orders NASCAR teams to turn over financial data to stock car series, limits details

Judge orders NASCAR teams to turn over financial data to stock car series, limits details

CHARLOTTE, N.C. (AP) — A federal judge has ordered a dozen NASCAR teams to provide 11 years of financial data to the stock car series as part of an ongoing legal fight but sharply limited what they need to share. U.S. District Judge Kenneth Bell says the information will allow NASCAR to have “much of the arguably relevant substance of the requested information” while still protecting private details. The teams will provide only top-line data — total revenue, total costs, and net profits and losses — dating to 2014.… Continue Reading

NASCAR teams fear ‘catastrophic’ impact of disclosing financial records during court fight

NASCAR teams fear ‘catastrophic’ impact of disclosing financial records during court fight

CHARLOTTE, N.C. (AP) — Attorneys for 12 of NASCAR’s 15 race teams told a federal judge that disclosing their financial records to the stock car series would be “catastrophic” to competitive balance. NASCAR wants the details as part of its court fight with two other teams, 23XI Racing and Front Row Motorsports, which contend NASCAR is a monopoly and needs to change its charter system. The other teams don’t want their financial records to become part of the legal battle, saying they are private.… Continue Reading

Hall of Famer Dale Earnhardt Jr. wins NASCAR national series debut as crew chief at Pocono

Hall of Famer Dale Earnhardt Jr. wins NASCAR national series debut as crew chief at Pocono

LONG POND, Pa. (AP) — Dale Earnhardt Jr. won his NASCAR national series debut as a crew chief in Saturday’s Xfinity Series at Pocono Raceway. Pressed into unexpected service, Earnhardt called the shots for 18-year-old prospect Connor Zilisch in the No. 88 Chevrolet and they both landed in victory lane. Earnhardt made a pit stop from his day job as team owner at JR Motorsports with normal crew chief Mardy Lindley suspended one race because of a lug nut infraction earlier this month at Nashville.… Continue Reading

Spire Motorsports punishes Carson Hocevar for derogatory comments about Mexico City

Spire Motorsports punishes Carson Hocevar for derogatory comments about Mexico City

CHARLOTTE, N.C. (AP) — Spire Motorsports has fined Carson Hocevar $50,000 for derogatory comments he made about Mexico City on a live stream as NASCAR raced there last weekend. Hocevar walked back the comments Sunday night with an apology and the 22-year-old admitted it was the first time he’d ever been outside the United States and believed all the negative things he’d read and heard about Mexico City. He said he was embarrassed about his comments in an apology on social media. The money will be split by three Mexican charities. Spire also ordered Hocevar to attend cultural-sensitivity and bias-awareness training.… Continue Reading

Federal judge calls on NASCAR, teams to settle bitter antitrust battle

Federal judge calls on NASCAR, teams to settle bitter antitrust battle

CHARLOTTE, N.C. (AP) — A federal judge is urging NASCAR and two of its teams to settle their increasingly acrimonious legal fight that spilled over into tense arguments during a hearing this week. 23XI Racing, which is owned by Michael Jordan and three-time Daytona 500 winner Denny Hamlin, is fighting with NASCAR along with Front Row Motorsports. The two say the series is a monopoly, but NASCAR has struck back with a countersuit of its own.… Continue Reading

Denny Hamlin to miss NASCAR’s first international race after birth of son

Denny Hamlin to miss NASCAR’s first international race after birth of son

MEXICO CITY (AP) — Denny Hamlin will miss NASCAR’s first international race of the modern era to remain in North Carolina following the birth of his child. Ryan Truex will replace him Sunday in Mexico City. Hamlin and fiancee Jordan Fish now have three children, two daughters and a son born Wednesday. Hamlin had been on baby watch the last 12 days as Fish went nearly two weeks past her predicted due date. He had planned to get out of the car at Michigan last Sunday if she went into labor early in the race, but when the first stage passed with no word, he went on to score his third win of the season. The victory was the 57th of his career and made him the all-time winningest driver at Joe Gibbs Racing.… Continue Reading

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