CHARLOTTE -- Judge Kenneth D. Bell voiced an idea Thursday afternoon during a contentious preliminary injunction hearing, one that had not previously surfaced in this dispute between NASCAR and 23XI Racing/Front Row Motorsports.
Why can't NASCAR just issue another charter, one that it had set aside? As Judge Bell noted, NASCAR has the power to just issue a charter and give it to a prospective owner.
Each race can hold up to 40 entries. So why don't they just do that in the meantime? If NASCAR issued another charter, it would put the Cup Series at 33 heading into 2026, based on the outcome of the trial.
A charter is NASCAR's version of a sports franchise. It guarantees entry into every race on the schedule, as well as a larger portion of the prize purse. They have only increased in value, with the last one selling for $40 million.
The reason this became a topic of discussion is that NASCAR had revealed it planned to transfer one of the charters previously belonging to either 23XI Racing or Front Row Motorsports to another owner. NASCAR did not say if it would sell this charter or simply transfer it for free.
The two teams responded by essentially streamlining their preliminary injunction request. Yes, lead attorney Jeffrey Kessler said they want to return to their status as chartered organizations through the balance of the 2025 season, but at a minimum, they want the injunction to prevent NASCAR from sending these charters to other owners before the antitrust lawsuit trial begins on Dec. 1.
If NASCAR sold or transferred these charters, they could complicate the situation if the two teams won at trial in December. The Court has significant power in determining what relief to provide after the jury rules in favor of either party, but it would to determine how to handle this particular situation.
Christopher Yates, NASCAR's lead attorney, said during Thursday's hearing that NASCAR views the situation as 30 charters belong to teams that signed the 2025 Charter Agreement. The other two come from Stewart-Haas Racing. They are a key part of the dispute between the two teams and NASCAR.
The other four charters -- two from Front Row Motorsports and two from 23XI Racing -- are just there. They are essentially off to the side.
As Judge Bell noted, if NASCAR prevails in the trial, it will already have one charter that it issued. It will have others in its pocket to distribute how it sees fit. The Judge also said that if 23XI Racing and Front Row Motorsports prevail, the charter system could change drastically as it likely undergoes examination.
Yates argued against this path. He said that teams negotiated to have only 36 charters and that they would have the first right of refusal regarding the creation of a 37th charter. Judge Bell countered by saying that NASCAR could "cajole" them into accepting the deal.
Why would Judge Bell voice this proposal amid the ongoing dispute? As he explained, the Court was struggling to find injunction relief that would create certainty for everyone involved, even those not represented in the courtroom.
He said that if the plaintiffs (23XI Racing/Front Row Motorsports) prevail in December's trial, this creates uncertainty for everyone in the sport because no one knows how the charter system will change. They also don't know if the Court will force NASCAR to sell some of its tracks.
If NASCAR prevails, they will have certainty. 23XI Racing indicated they will go out of business. Meanwhile, nothing will change in how NASCAR does business.
"Everybody is going to get hurt if this goes a certain way," Judge Bell said on Thursday about the ongoing dispute. "If either party feels certain they're going to win, they're wrong."
NASCAR did not appear open to this idea so for now, they and the two teams will await Judge Bell's ruling regarding the preliminary injunction. This should come next week.