NASCAR President Publicly Denies Michael Jordan’s & Co’s Lawsuit Accusations With Bold 6-Word Claim

“Plaintiffs’ did not sign the Charters and their failure to secure preferred contractual terms is not antitrust injury.” This was NASCAR’s response after 23XI Racing and Front Row Motorsports re-filed an appeal for an injunction motion. Now, NASCAR has been against the very idea of granting exceptions to the teams by renewing their status as chartered teams after failing to sign the charter deal.

For the most part, NASCAR has relied on their legal statements and filings to do their talking, but that seems to have changed. Rather than going on the offensive, NASCAR President Steve Phelps subtly celebrated the success story of the charter system. Claiming that it has led to a better competitive setting while also bringing in more aid financially to help them grow and thrive. This was the primary demand made by the teams during the 2-year-long negotiation process.

Parity Racing has led to more competitive racing

The 2024 NASCAR Cup Series season saw a total of 18 different winners. This was a mix of the powerhouse teams trying to maintain their dominance and new teams stepping up. Hendrick Motorsports and Team Penske certainly had their noses in front, while 23XI Racing made huge progress. Tyler Reddick and the #45 team made it to the championship race, which was the first for 23XI Racing.

NASCAR planned to bunch the teams together with the Next-gen car and allow the smaller teams to have more playing field. Well, going by how the 2024 season panned out, this mission statement is turning out to be true. Moreover, the charter system has also played a hand in bringing about this change. In the Next-Gen era, all the teams have to source parts from a NASCAR-assigned dealer. This cuts down on the advantage powerhouse teams once enjoyed allowing the likes of 23XI Racing to draw level with them.

“We as a sanctioning body are pleased with that. I think that’s what it’s meant to be, and I do think the charters and the charter system has led to that. There are no more start and parks; there are no more underfunded teams that are just running in the back; you just don’t have that anymore. I think we are in an unprecedented era of competition, and I look forward to doing it 25 and beyond,” NASCAR President Steve Phelps said during the live webinar cohosted by Racer.com and Speed Sport.

Even struggling teams like Stewart Haas Racing and Wood Brothers Racing were able to gain massive ground-winning races. So, basically, the financial fruits and glory of winning races are not just limited to top-tier teams. Not to forget, NASCAR did announce that the new TV deal worth $7.7 billion is going to bolster the team financially. “The amount of money it now puts the race teams, starting in 25, as the single largest beneficiary of our media deal. And we did that because the race teams were upside down financially.” NASCAR President Steve Phelps said ahead of the championship race in Phoenix.

It was the first time that NASCAR acknowledged the financial crunch the teams were facing and acted upon it. This was nothing more than a cryptic jab by NASCAR towards the two teams. But as far as an injunction plea is concerned, they are playing hardball. Moreover, there’s a possibility that both 23XI Racing and FRM will have to relinquish their ownership of the Stewart Haas Racing charters.

SHR charters are not under the ownership of the teams

It’s mind-boggling to see both 23XI and FRM planning to expand their operations at the Cup level with the addition of charters. Going into the 2025 season, they have owned a charter each from the now-defunct Stewart Haas Racing. While they might have settled their business with Tony Stewart and Gene Haas, NASCAR is the one who will have the final say in the transfer of the charters.

The irony is that the teams want chartered team status while suing NASCAR for antitrust. On the other hand, they are expanding their teams with more funding and resources. At a time when their first injunction plea was rejected after failing to prove irreparable harm. Needless to say, NASCAR wasn’t going to play to the tunes of teams and has once again reiterated its stance.

“The two SHR charters are still TBD. The teams asked in their preliminary injunction motion for at the minimum that those charter sales to go through to them while the lawsuit continues. If the judge doesn’t grant that request, TBD. Lease to another team for a year? Don’t know.” Bob Pockrass shared this on X after NASCAR responded to 23XI Racing’s renewed injunction plea.

Now there is a possibility that the teams could be stripped of their charters if the injunction ruling doesn’t go their way. That would force the teams to field open cars next year, but will it be two cars or three cars? Well, that will be clear after the court’s decision.