23XI Racing is at the center of the latest NASCAR controversy after a post on X by Motorsport revealed new legal developments. NASCAR insider Matt Weaver explained in a video how the team co-owned by Michael Jordan and Denny Hamlin, along with Front Row Motorsports, could lose their Cup Series charters permanently. This comes from their refusal to sign the charter agreement last year, which led to an ongoing antitrust lawsuit against the governing body.The post was shared on Motorsport’s official X account. The caption read,“More charter chaos in the NASCAR world. 🫨 Matt Weaver breaks it all down.”Weaver revealed that NASCAR informed the court it had reached an agreement to transfer one of the four charters given up last year when 23XI and Front Row refused to sign the charter agreement. The decision is now in the hands of the court, which will rule on it in a hearing on Thursday. According to Weaver, if NASCAR proceeds with reallocating the charters to another team or a private equity group, 23XI Racing and Front Row could lose them permanently.“But this is a big deal because if NASCAR gives this charter to another team or private equity group, 23XI or Front Row more than likely will lose it forever. The teams will argue on Thursday that this will cause them irreparable harm.” (0:20 onwards)“NASCAR will argue that not moving forward with interested parties ahead of 2026 will cause the Cup Series irreparable harm. Plus, they say the court can't force NASCAR to work with parties they don't want to like 23XI and Front Row, who are suing them.”Weaver added that the identity of the new interested party remains unknown, as it has been redacted in court filings. On Monday, NASCAR complied with a court order to disclose any pending charter transfer agreements, confirming one such deal existed. Both teams now face a critical hearing before Judge Kenneth D. Bell in Charlotte, where they will try to block the transfer.The teams maintain that running as open teams without charters is financially unsustainable. The teams also argued that drivers and sponsors could leave if charters are not secured, as contractual opt-out clauses could be triggered.NASCAR, however, contends that the court cannot force it to do business with organizations currently suing it. The sanctioning body also argues that refusing to finalize new charter deals before the 2026 season would damage the Cup Series itself. NASCAR insists it has the right to work with teams it chooses, while 23XI and Front Row continue to argue that this conduct violates antitrust law.The dispute has already seen shifting outcomes in court. A lower court initially forced NASCAR to recognize these teams as charter holders, but an Appeals Court later overturned that ruling. Now, the two teams are requesting a new injunction to prevent charter transfers before the December trial, while NASCAR pushes forward with plans to allocate the charters elsewhere.NASCAR’s 2026 charter plan raises shutdown fears for 23XI RacingNASCAR analyst Bob Pockrass has provided more details on the dispute involving 23XI Racing, Front Row Motorsports, and NASCAR. The dispute stems from the two teams’ refusal to sign the new charter agreement in October 2024, which led to an antitrust lawsuit against the sanctioning body.The conflict escalated when the teams accused NASCAR CEO Jim France of monopolizing the sport. In July 2025, the court sided with NASCAR, rejecting the teams’ request for a restraining order and stripping them of their charters. Since then, the two teams have competed as open teams in the Cup Series.According to FOX Sports, NASCAR plans to issue charters to another team for the 2026 season. 23XI Racing and Front Row claim that if this happens, they will be forced to shut down “following the 2025 Cup Series season.” NASCAR has not disclosed the name of the team set to receive the charters. Pockrass shared,“NASCAR says it plans to issue a charter to a team (that it didn’t name) for 2026 while 23XI and Front Row Motorsports said if the charters they had earlier this year are sold, they would shut down ‘following the 2025 Cup Series season.”Ahead of the August 28 hearing, both teams are seeking a new injunction to be recognized as chartered for the remainder of the 2025 season. Their appeal cites the court’s earlier finding that,“It is not economically viable to race as open teams on a long-term basis … and NASCAR did not challenge that finding on appeal.”As things stand, Michael Jordan's co-owned team and Front Row Motorports face the remainder of the season without the financial security or guaranteed starting spots that come with charter status. With ten weeks left in the 2025 Cup Series season, their future remains uncertain, hinging on both the upcoming hearing and the outcome of the December antitrust trial.