Tuesday afternoon in Charlotte had the feel of a showdown, but not the racing kind. In a federal courtroom, tensions ran high as Judge Kenneth Bell tried to bring calm to escalating tensions between NASCAR and two of its teams, 23XI Racing and Front Row Motorsports. The judge didn’t mince words. “It scares me to death to think about what all this is costing,” he said, as both sides argued their case in a two-hour hearing. Bell urged them to consider a settlement, adding, “It’s hard to picture a winner if this goes to the mat, or to the flag, in this case.”

Both parties were locked in a bitter legal fight, and the judge feared the damage it could do to the sport itself. The hearing revolved around the teams’ attempt to dismiss NASCAR’s antitrust counterclaim that accused 23XI and FRM of colluding during charter negotiations. NASCAR insisted the two teams had formed a cartel; the teams’ lawyers shot back, calling it retaliation. Notably, NASCAR had previously accused 23XI investor Curtis Polk of trying to pressure all 15 Race Team Alliance members into collective bargaining.

However, during the hearing, the judge remained skeptical of both sides but pushed them toward a solution. But Wednesday brought a new twist. On Wednesday, June 18, NASCAR filed a new motion that could change the game again. The filing asked the court to force every chartered team, even those not part of the lawsuit, to hand over detailed financial records. It was a bold step. Just a day after being told to find common ground, NASCAR went on the offensive, and the battle took a new turn.

NASCAR asks teams to reveal key financial data!

On Wednesday, June 18, NASCAR filed a motion that demanded all 13 charter-holding teams submit their financial documents. These teams are not part of the ongoing lawsuit. NASCAR had already subpoenaed these teams back in April, asking for eleven categories of financial information. After several weeks of discussions, NASCAR trimmed its request to one simple demand: full financial records. These include cost breakdowns, sponsorship income, and net profits. NASCAR insisted this data is critical to its defense.

In the court document, NASCAR stated plainly: “These team financial documents are critical to NASCAR’s defense, because several major components of ‘industry revenues,’ such as team sponsorship revenues, are known only to the individual teams. Similarly, only the Racing Teams can provide cost information to rebut Plaintiffs’ efforts to argue that the NexGen car has increased, rather than reduced, parts costs.”Additionally, the filing states that teams have agreed to anonymously disclose their data to any third-party counsel, but NASCAR wants them to submit it directly to its own counsel.

However, to keep teams happy, NASCAR has proposed that the information wouldn’t be shared internally or used publicly. It even promised that its lawyers would destroy all records after the case ends. This new demand comes just a day after NASCAR, the France family, 23XI Racing, and Front Row Motorsports all disclosed their own financial records, under protective court orders. That step set the tone. All four parties submitted their books with legal assurances to keep sensitive numbers confidential. That gave NASCAR the confidence to now ask the court to demand the same transparency from every other team.

This is a major blow for teams like Hendrick Motorsports, Joe Gibbs Racing, Team Penske, and others. Notably, just weeks ago, when Michael Jordan and Co. had asked the court to make all 13 teams a part of the ongoing counterclaim, NASCAR had argued against it. In a filing, it had said, “…non-party Charter holders need to be joined to this litigation.” But now it’s asking a judge to force them to hand over their financial secrets. These are teams that did not join the lawsuit and had hoped to stay far away from it. But NASCAR’s shift in strategy has brought them into the fray. The legal battlefield is expanding.

But there is a question: Why does NASCAR want this data so badly? Because it’s trying to prove that teams aren’t suffering, they’re making money. Bob Pockrass of FOX Sports noted, “NASCAR is asking teams for their financial data because they want to show if teams are profitable.” That’s key to defending against the antitrust claims. NASCAR believes sponsorship income and cost reductions from the Next Gen car show the teams’ real financial health. Without exact numbers, they can’t prove it.

On the flip side, teams don’t want to share these numbers. Pockrass explained why: “They don’t want NASCAR to know how much they are getting from sponsors as they all compete for sponsors.” That’s a serious concern. Sharing sponsor income could hurt teams in future deals. The garage runs on competition, not just on the track but in the boardroom. Financial transparency could give rivals a business edge. That’s why many teams have pushed back, offering instead to provide anonymized, averaged data.

However, NASCAR stated that it won’t suffice, and the court will decide soon. With the pressure rising, the original plaintiffs, 23XI and FRM, may now face a tough choice. Will they try to flip the script again? The charter deadline is approaching fast. After losing their chartered team status in court, they may now be forced to return and demand a rehearing.

Will 23XI and FRM demand a rehearing for the charter?

While NASCAR is preparing for its defence, time is running out for 23XI Racing and Front Row Motorsports. They have until Thursday to ask for a rehearing in their Charter fight, and all signs point to them doing just that. After the appeals court overturned their injunction, which had temporarily recognized them as chartered teams, the pressure has grown. Without charters, they risk losing tens of millions and guaranteed race spots.

On Tuesday, their attorney, Jeffrey Kessler, hinted that the next move is coming. “Unfortunately, I don’t think the three judges, if you read their opinion, actually dealt with the hard issues, and that’s what the circuit will need to do… These types of forced releases by someone who is adjudicated to be a monopoly in some respect … we think they’re anti-competitive. We think if the whole Fourth Circuit looks at that, it’s hard to get a rehearing, may not get a rehearing, but we think it should have a rehearing,” he said to NBC.

Teams believe a full circuit review might see it differently. If the rehearing is denied, the teams could lose their charter status just days later. Notably, 23XI Racing’s co-owner Denny Hamlin had already hinted that they might fight back. “That’s just such a small part of the entire litigation… We’re looking at all options right now,” he had said earlier this month. Notably, the Charter fight, once seen as a side issue, could now become the central battlefield once again. All while the trial date, December 1st, looms like a storm cloud over NASCAR’s future.