The world of motorsports is more than just fast cars and exciting races; it carries a huge financial component which can be tricky to navigate. Currently, NASCAR is having some trouble with aspects of its business model, specifically regarding its charter system.
Two teams, Front Row Motorsports and 23XI Racing, have recently sued NASCAR in an antitrust lawsuit. FRM and 23XI are fighting against NASCAR’s 2025 charter system, which they argue restricts competition and forcefully binds them to the series.
FRM and 23XI have called NASCAR “monopolistic bullies,” and I’m here for it. It’s time that NASCAR implements changes that make the sport more enjoyable for everyone, not just the fans, but the teams themselves.
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If only two teams are suing NASCAR, does this mean all the other teams are okay with how things are being run? Not necessarily, but NASCAR didn’t really give them much of a choice.
Here’s the rundown:
If you’re new to NASCAR, charters are essentially a guaranteed entry for every race of the season that can be bought and sold from different teams. Charters also come with a portion of the purse (prize money). Introduced in 2016, this system, in theory, was meant to bring some stability and add value to the teams, but it doesn’t seem to have worked out very well.
This year’s charter negotiations went on for longer than usual, as NASCAR and the teams couldn’t quite see eye to eye. The teams were fighting for a bigger seat at the table. They wanted more revenue to actually make a profit, more permanent charters, a say in decisions and a portion of the deals NASCAR makes on drivers.
NASCAR, of course, wasn’t too keen on giving up the control it has had over the past few years, which allows it to limit competing leagues by completely controlling the series’ tracks and forcing teams to solely buy parts from them.
Eventually, NASCAR got tired of negotiations going on for as long as they did with no agreement in sight. It drafted a final contract and presented it to the teams, and on Sept. 6, during the early evening, NASCAR gave them until midnight to sign the contract. In a time crunch and with no other options, the teams were basically forced into signing it.
However, FRM and 23XI refused to sign, which is why they are now suing NASCAR on the basis that the leadership is monopolizing the sport and forced teams into signing the contract. Currently, both teams are fighting to race in 2025 as chartered teams, despite not having signed the contract, while the lawsuit plays out.
The hearing is set to take place Nov. 4, with a ruling from the judge likely coming within a few days. After that, what the timeline could look like varies.
If the case goes to trial, we could be looking at two years (or more if an appeal is filed). NASCAR could be looking at a lengthy process, but it does always have the option of settling the case at any time.
What this lawsuit could mean for the future of NASCAR is unclear. A win for NASCAR could reinforce a system that many teams feel is unfair, but the potential for more competition and innovation within the series is also a possibility and what I’m hoping is the outcome.
The success of this lawsuit could mean the beginning of a power shift in the series, where teams are given more control over how revenue is split, making it easier for teams to thrive long term. It’s clear something needs to change. As NASCAR continues to grow, it will be extremely important for them to update their business model and give teams the financial support and flexibility they need to grow.
Hopefully, this lawsuit is the push NASCAR needs to make meaningful changes. Teams deserve a more balanced system that gives them a greater voice in decision making and provides them with a fairer revenue distribution. With less restrictive rules the teams could have the freedom to be innovative and push the sport to more exciting races.
Regina Correa is a sophomore writing about the world of motorsports in her column, “Need for Speed,” which runs every other Wednesday.
