NASCAR’s charter system, the backbone of financial stability for many Cup Series teams, is at the center of a contentious legal battle, as 23XI Racing and Front Row Motorsports accuse the organization of operating as an illegal monopoly. In response, NASCAR filed its own motion for summary judgment, arguing that “Neither greed, nor an individual’s bruised ego over his inability to deliver on some promises he made to other teams, justifies trying to destroy an institution.” 

The filing includes statements from ten of the sport’s top team owners, urging that the lawsuit be resolved in a way that preserves the charter system, which guarantees entry into all 36 points races and additional revenue for chartered teams. Those who submitted affidavits include the “Big Three”: Rick Hendrick, Roger Penske, and Joe Gibbs, along with Richard Childress, Brad Keselowski, Carl Long, B.J. McLeod, Gordon Smith, Rick Ware, and Jon Wood. Let’s hear what they had to say.

Joe Gibbs- Joe Gibbs Racing

Team owners consistently emphasized the importance of the charter system, both as a financial lifeline and as a framework for long-term stability. Joe Gibbs of Joe Gibbs Racing highlighted the unique position his team occupies in the dispute, noting the personal and professional stakes involved:

“JGR and I are in an incredibly difficult position. On the one hand, I have had a close and important relationship with the France family for decades, and consider Jim France a personal friend. Jim and I have had numerous talks about our families and how important NASCAR is to their future. At the same time, this lawsuit involves some of our very important partners: Toyota, alliance partners, and our driver Denny Hamlin. These relationships are some of JGR’s most important business relationships.”

Rick Hendrick- Hendrick Motorsports

Rick Hendrick echoed these concerns, noting the charter system’s centrality to his team’s continued operations and stability. “Undoing what we have collectively negotiated will not only result in immeasurable damage to our sport and our respective businesses, it will, most importantly, hurt the people and families that depend on us for their livelihoods,” he said. Hendrick framed the charter system as essential for all Cup Series teams, highlighting how the framework provides both economic security and equity value.

As one of the sport’s most successful team owners, Hendrick emphasized the far-reaching impact of the Charter system on both competition and the business side of NASCAR.

“The Charter Agreement is critical to the stability of the NASCAR ecosystem – the teams, the businesses that support us and NASCAR itself. Without this framework in place, I question the long-term viability of the teams, including Hendrick Motorsports, and do not believe we would be able to survive. Undoing what we have collectively negotiated will not only result in immeasurable damage to our sport and our respective businesses, it will, most importantly, hurt the people and families that depend on us for their livelihoods.”

Richard Childress- Richard Childress Racing

Richard Childress similarly emphasized the necessity of a charter for long-term viability, writing, “Given the challenging business model and economics that Cup Series team owners face, Charters are essential to creating enterprise value for teams. The Charter system has helped create long-term equity value and has allowed for team equity value to grow. Without Charters, the team ownership model is unsustainable. That is why I remain committed to finding a mutually agreeable solution that will provide permanent Charters to all Charter holders.“

Roger Penske- Team Penske

Roger Penske underscored both the economic and competitive benefits of the charter system, while highlighting innovations like NASCAR’s Next Gen car that have reduced costs for teams. “Attempting to address team concerns with the cost to race in Cup Series races, NASCAR with feedback from the teams, introduced what is called Next Gen car. Since the Next Gen car began racing in 2022, Team Penske’s Cup Series race car costs have been reduced due to a smaller number of race cars in the fleet and a lesser volume of parts replacements. In addition to cost efficiencies, the Next Gen car has enhanced on-track racing for our team and certainly others,” he noted.

He further highlighted how the success of NASCAR’s Charter system influenced his approach to team and series management beyond stock car racing. “My belief in the value of the NASCAR Charter system is confirmed by the fact that, based on my experience with NASCAR’s Charter system since 2016, I decided to create a Charter-type system in IndyCar. In 2024, the NTT INDY CAR SERIES and all teams racing full time in IndyCar entered into a charter agreement effective for the 2025 season. The IndyCar Charter has some similarities to the NASCAR Charter and I believe has brought value to our series,” said Penske.

Rick Ware- Rick Ware Racing

Rick Ware explained how the Charter system allowed a small, family-run team to grow into a multi-disciplinary organization. “The Charter system has allowed a small, family run race team like RWR to use the financial security that is inherent with the provisions of the agreement with NASCAR, to grow into a multi-disciplinary motorsport organization. Without the Charter system, we could not have grown our footprint to what it is today and would not have ever realized the ability to operate as a full-time NASCAR Cup Series team.” He further highlighted the financial security and stability the system provides, as well as the increased value of Charters over time.

Other statements

Other teams like Trackhouse Racing, Spire Motorsports, Kaulig Racing, and Haas Factory Team were notably absent from the declarations. While 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports opted not to sign the 7-year charter extension, arguing that NASCAR’s “take-it-or-leave-it” offer was coercive, the majority of chartered teams have signed on and advocate for preserving the system.

NASCAR’s filing stresses that the lawsuit is “not about antitrust; it is merely an attempt to renegotiate an agreement that was signed and is being honored by all other race teams,” while their attorney argues the case should be dismissed due to the statute of limitations and lack of market harm.

Jeffrey Kessler, representing 23XI and FRM, responded that the declarations actually support his clients’ position by showing the systemic dependency on charter while not excusing NASCAR’s conduct: “They have supported charters because teams cannot survive without them. The declarations from team owners and executives acknowledge this same economic reality. Nor do they excuse NASCAR’s anticompetitive conduct or its unlawful monopoly, points 23XI and Front Row have maintained from the start.”

The trial is scheduled to begin on December 1 in Charlotte, North Carolina, leaving the future of NASCAR’s charter system and the financial and competitive security of its teams hanging in the balance.