"It’ll make them more profitable" - Steve Phelps explains how NASCAR's charter system benefits teams amid 23XI-led antitrust lawsuit

NASCAR President Steve Phelps has championed the charter system amid the ongoing lawsuit battle against two teams. Phelps explained that while the system won't meet every demand, it is formulated to benefit all the chartered teams.

For the uninitiated, 23XI Racing and Front Row Motorsports refused to sign the multi-year charter extension due to alleged monopolistic practices and other unfair conditions. However, Phelps defended the charter system and said it makes the teams more profitable.

Per The Athletic, the NASCAR chief was asked about his thoughts on missing out on two of the 15 teams that signed the charter agreement. He said that's part of a negotiation, with some agreeing and others not.

"I think there are things in this charter agreement that starts in ’25 that those 32 charters held by 13 teams, that there are things in there they really like and there’s some things in there that they don’t like, or they don’t like as well. [...] That’s a negotiation," Phelps explained.

He added that the league negotiated with the teams to find a balance for everyone, saying:

"We negotiated in good faith with our race teams to find a balance that was going to help the sport move forward positively."

Moreover, Steve Phelps was certain the charter system would provide market value to the teams that signed the agreement.

"To me, that’s [collaborating with the teams] the start of something new and special that I believe is going to work. And when I mean work, I mean it’s going to work for the race teams because it’ll make them more profitable, it’ll help them be more marketable," Phelps stated.

23XI driver Bubba Wallace (left) and 23XI co-owner Michael Jordan (right) - Source: Imagn

As it stands, 23XI Racing and Front Row Motorsports don't have a charter deal for next season. This means the two teams are left without guaranteed race entries and should miss out on huge payouts.

However, 23XI and FRM are taking the case to court, filing a preliminary injunction to allow them to temporarily compete as "chartered teams" while the lawsuit is ongoing.

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NASCAR reacts to 23XI Racing, Front Row Motorsports' refiled preliminary injunction

After 23XI Racing and Front Row Motorsports refiled a motion for a preliminary injunction, NASCAR condemned the two teams. The league believes the new "manufactured" evidence wasn't enough to prove irreparable harm, though it refused to respond further.

In an X (formerly Twitter) post, veteran NASCAR reporter Bob Pockrass shared NASCAR's reaction to the most recent preliminary injunction.

"NASCAR's deadline to file response to 23XI/Front Row most recent preliminary injunction motion was today and it was just filed," Pockrass wrote.

According to the court, 23XI and FRM should prove they would experience "irreparable harm" if their preliminary injunction is denied. NASCAR argued that the second attempt, backed with new evidence, wasn't enough to support the plaintiffs' case.

"Even with their manufactured evidence, Plaintiffs still fall far short of a clear showing of irreparable harm. Their new submissions underscore that any claimed harm remains speculative, self-inflicted, and redressable with monetary damages."

While waiting for further developments, 23XI Racing will run three cars in the Cup Series next year with the addition of Riley Herbst. Front Row Motorsports, meanwhile, looks to expand to three cars.