Apart from the playoffs, if there’s any other intriguing storyline going on in NASCAR, it’s the charter lawsuit. Michael Jordan and Denny Hamlin’s 23XI Racing, along with Front Row Motorsports, has challenged NASCAR’s charter system since last year. Just when you think it slows down, there’s a new twist that stirs everything up again. This time, there’s news of a settlement conference that’s come up.

In response to the lawsuit, NASCAR has sought a judicial settlement conference, proposing that a federal judge mediate the dispute. However, 23XI Racing and Front Row Motorsports have expressed a preference to continue working with their current mediator, Jeffrey Mishkin, since he knows the case well and is aware of the progress made so far. Now, Judge Kenneth D. Bell has stepped in with a new directive, one that could change the course of the charter dispute altogether.

December-bound NASCAR lawsuit gets a new update

Veteran NASCAR journalist Bob Pockrass recently tweeted the latest on this case. According to him, U.S. District Judge Kenneth D. Bell ordered all parties to participate in a settlement conference to be held on October 21, 2025, with mediator Jeffrey Mishkin. As opposed to a trial, the court’s emphasis is on resolving the dispute through mediation.

On the other hand, the hearing on motions for summary judgment and to exclude witnesses has been rescheduled to October 23, 2025. The outcome of these proceedings could significantly impact the future structure of NASCAR’s charter system and the teams involved.

As things stand, the charter system has reportedly generated over $1.5 billion in equity since 2016. This figure has also been a point of contention. 23XI Racing and Front Row Motorsports allege that the current dynamic stifles competition. The teams believe that this, in turn, unfairly benefits NASCAR and select teams.

The lawsuit challenges the legality of this system under federal antitrust laws. If this goes forward, the case has the potential to reshape the governance and financial landscape of NASCAR.

As the settlement conference approaches, the parties involved remain under pressure to reach an agreement. The court’s involvement and the scheduled hearings indicate a concerted effort to resolve the dispute before the scheduled trial on December 1, 2025. One thing’s sure, whatever the outcome is, it will have significant implications for the future of NASCAR and its teams.

Teams voice support for charters

If settlement talks fail, the usual December trial will take place between NASCAR, 23XI Racing, and Front Row Motorsports. Ahead of this, several team owners have weighed in on the charter system at the heart of the dispute. While the lawsuit challenges certain practices within the system, team executives emphasize the economic stability that charters provide.

Rick Hendrick of Hendrick Motorsports said, “The charter agreement is critical to the stability of the NASCAR ecosystem.” His statements implied a shared understanding of the system’s importance. Richard Childress of Richard Childress Racing added, “Given the challenging business model and economics that Cup Series team owners face, charters are essential to creating enterprise value for teams.” Just like Hendrick’s, this was another voice in favor of charters.

Roger Penske offered his own reasoning for signing the new charter agreement. He noted that “NASCAR was not going to move any further on their document and it was time for our team to go forward.” Penske, who implemented a similar charter system in IndyCar, reinforced the value of structured agreements. Other prominent teams did not submit statements, leaving the conversation primarily among the charter-holding stalwarts. Unsurprisingly, 23XI co-owner Denny Hamlin had a lot to say on this stance.

The JGR driver reflected on NASCAR’s latest filings following last weekend’s Charlotte Roval race. “Nothing surprised me,” Hamlin said. “I didn’t think it was super helpful for them. Honestly, I thought it was more helpful for us. Obviously, as [the team owners all] said, they were asked to do it.” 

Hamlin felt that these statements, which were supposed to help NASCAR, are instead helping 23XI and Front Row as they expose the reality of how NASCAR negotiates. The way the owners are feeling pressurized, this is the proof that Hamlin is pointing it which is exactly the point of what his lawsuit is challenging.