The NASCAR lawsuit is reaching a fever pitch. From both parties gutting it in court to leaking texts from the 23XI Racing’s president, Steve Lauletta, stating that “Jim (France) dying is probably the answer” to Denny Hamlin despising the France family, the lawsuit has seen it all. NASCAR is at risk of losing the concept of a charter system as a whole if both parties (NASCAR on one side and Front Row Motorsports and 23XI Racing on the other) go to court to settle it, and NASCAR president Steve O’Donnell isn’t here for it.

The charter system sits at the very core of NASCAR’s modern business structure, and right now it’s the centerpiece of a high-stakes legal showdown. Speaking on the Dale Jr. Download, O’Donnell couldn’t help but praise the current charter system and how it’s playing out for the rest of the NASCAR teams: “Now, we’ve seen the value grow for teams, which is awesome. And what we wanted to come out there because you go to trial, and we saw it written, was the charter system could be up in the air.”

“That’s not good—that’s a lot going on there. So, I think the teams are saying, ‘Hey, there’s a concern here if this goes to trial that anything could happen to the sport, including charters going away.’ That’s a concern… If it goes away, that’s not a win for NASCAR—that charters went away. We support charters. We’ve got 13 teams that signed up with them.”

Steve O’Donnell has made it clear; he doesn’t want to set foot in the courtroom for a trial, especially when NASCAR’s version of the franchise model, a charter, secures teams a guaranteed grid spot and steady stream of annual revenue, and according to the sanctioning body, it has generated more than $1.5 billion in equity value for its members since its inception in 2016.

A year ago, after more than two years of stalled negotiations, 13 of the 15 teams offered to re-sign rather than risk a worse outcome. The remaining two, 23XI Racing and Front Row Motorsports, took a different path and headed to court.

For months, the 13 teams that stayed in line have quietly voiced concerns that the lawsuit has clouded NASCAR’s future. But that silence finally broke last week, and several of the biggest organizations released public statements, urging both sides to find common ground and reaffirming their support for the charter system that keeps the business of racing afloat.

Reinforcing his point, Steve doubled down, saying, “So what I think that did, Dale, is it helped. You know, it’s being positioned that NASCAR wants the charter system to go away. You know, Jim France—the one thing about Jim is—the charter system is in place and said, ‘I will live by whatever we signed.’ He had a choice, right? He could have said, ‘You know, we don’t want charters in the future.'”

And now, the next major chapter in NASCAR’s legal standoff is set for October 21, when Michael Jordan and Denny Hamlin’s 23XI Racing and Bob Jenkins’ FRM will face off with NASCAR in front of the district judge Kenneth Bell at the U.S. District Court of the Western District of North Carolina. However, the two parties are in a tight spot as the summary judgment hearing has been pushed to Oct 23. With less time in hand compared to the first scheduled Dec 1 hearing, the rivals will need a miracle for things to work out their way.

“We remain open to a settlement,” says 23 XI/FRM attorney amid lawsuit chaos

In a statement, the NASCAR teams’ attorney, Jeffrey Kessler, said the team is welcoming Judge Bell’s decision to bring all parties together for a meaningful resolution.

The statement said, “We remain open to a settlement that genuinely benefits the sport and its fans. The goals my clients have raised are clear, and the teams have affirmed them in their own declarations. From the outset, our objective has been unwavering: to secure lasting stability and growth for every team, their employees, and the sport. It’s time for all parties to step up and deliver.”

Monday’s filing from NASCAR emphasizes that both sides share common ground on this issue, referring to the desire to settle before trial, which is scheduled to begin on December 1. The filing read, “This is an area where the parties are actually in full agreement. NASCAR would also like to resolve this case prior to trial and believes that the parties should be able to reach a reasonable resolution with the assistance of a neutral judicial officer.”

With this, the lawsuit is quickly escalating, and both parties involved have a lot at stake. Only time will tell what will happen.