23XI and FRM underscore ‘existential threat’ in NASCAR’s demands as team owners rally to protect charter system

NASCAR Cup Series YellaWood 500 - Source: Getty
NASCAR Cup Series YellaWood 500 - Source: Getty

23XI Racing and Front Row Motorsports have filed a response to the letters of declaration signed by team owners last week. The two teams allege that the declarations were made under pressure by NASCAR's 'take-it-or-leave-it' approach.

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Early this month, the Michael Jordan-owned team filed a summary motion asking to define NASCAR's market. The filing was an attempt to prove the monopolistic practices employed by the sanctioning body.

In response, NASCAR filed a counterclaim that included letters of declaration from team owners like Joe Gibbs, Rick Hendrick, Richard Childress and Roger Penske, among others. The team owners seemingly backed NASCAR's stance but asked for a permanent charter system as well, a notion that NASCAR doesn't believe in. The governing body prefers periodic renewals to renegotiate terms.

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NASCAR analyst Bob Pockrass broke down 23XI and FRM's latest reply.

"23XI/FRM filed reply to NASCAR's response to 23XI/FRM motion to throw out NASCAR counterclaim that teams illegally colluded for better terms in charter deal. Not much new. Reiterated teams would naturally negotiate as a group but also participated in individual talks w/NASCAR," he wrote.
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"23XI/FRM filing did note as far as team owner declarations filed last week to keep charter system: "The team declarations NASCAR submitted with its summary judgment papers underscore the existential threat the teams faced when NASCAR made its take-it-or-leave-it charter demand," he added.
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Dale Earnhardt Jr. weighed in on the situation and explained how there's 'real fear' among team owners.


23XI and FRM 'welcome' the court mandated settlement conference

While the court's hearing of the summary motion is scheduled for October 23, 2025, Judge Kenneth Bell has mandated a settlement conference between both parties on October 21, 2025.

Addressing the same, the 23XI Racing and FRM's attorney, Jeffrey Kessler, issued a statement that read(via X/Jeff Gluck),

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“We welcome Judge Bell’s decision to bring all parties together to engage in meaningful resolution. 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."
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On Monday, October 6, NASCAR had asked for an independent Judge to preside over the settlement talks. They wanted to replace the current mediator, Jeffrey Mishkin, the former executive vice president and chief legal officer of the NBA.

Mishkin has been negotiating on behalf of the two parties all year long, and the teams have filed their own response to ensure he remains in that role. Michael Jordan is also prepared to go the distance if the settlement talks fail. He has already guaranteed financial suppport for his team through 2026.

Get the latest NASCAR All-Star race news, Xfinity Series updates, breaking news, rumors, and today’s top stories with the latest news on NASCAR.

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Edited by Vignesh Kanna
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