NASCAR recently updated its charter transfer rules after a high-profile dispute involving 23XI Racing and Front Row Motorsports (FRM).
Following a preliminary injunction and several court hearings NASCAR attended, the teams’ charter status and inactive charters are now protected until the 2026 Cup Series season.
This update affects Stewart-Haas Racing charters, unused charters, and the broader NASCAR charter system 2016, highlighting the impact on racing teams, Michael Jordan NASCAR, and Denny Hamlin NASCAR.
Background: 23XI Racing and FRM Charter Dispute
23XI Racing and FRM have been at the center of a legal battle over six racing team charters. Two of these charters originally belonged to Stewart-Haas Racing and were obtained via a Dec. 18 preliminary injunction.
The dispute escalated after NASCAR planned to sell or convey these charters, raising concerns about the NASCAR business impact and potential financial loss for both teams.
Preliminary Injunctions and Court Decisions
The preliminary injunction that gave the teams temporary charter rights was overturned on Jun. 5 by the appeals court. The teams returned to the court on Thursday to request a new injunction.
During these hearings, Judge Kenneth D. Bell questioned NASCAR’s ability to assign unused or bonus charters. NASCAR text messages involving Michael Jordan and Denny Hamlin NASCAR also surfaced, adding tension to the NASCAR lawsuit.
NASCAR’s Updated Charter Policy for 2026
NASCAR’s latest legal filings clarify that the organization will not sell, lease, or convey two inactive charters from Stewart-Haas Racing. Additionally, it will limit sales of any additional charters to four for the NASCAR 2026 season.
This ensures charter sale restrictions are in place while maintaining charter status for the disputed teams, showing a careful balance between NASCAR policy update and team protection.
How Many Charters Are Currently Unused?
Out of 40 total NASCAR charters, ten remain unused charters, including four that have not been assigned since the NASCAR charter system 2016.
This pool provides NASCAR flexibility but also raises stakes for teams like 23XI Racing and FRM, who are seeking stability in the Cup Series.
Teams’ Legal Response and Next Steps
The teams, represented by Jefferey Kessler, disagree with NASCAR’s filing. They plan to submit a formal response by Tuesday, aiming to preserve charter status and prevent premature charter conveyance / sale / lease.
The next court ruling could determine whether NASCAR injunction filing holds or if the teams face a disruption to their business.
Timeline of the 23XI/FRM Antitrust Lawsuit
- Oct. 2, 2024: 23XI Racing and FRM file an antitrust lawsuit against NASCAR.
- Dec. 18: Preliminary injunction grants the teams two Stewart-Haas Racing charters.
- Jun. 5: Appeals court overturns the injunction.
- Thursday: Teams request a new injunction during the preliminary injunction hearing.
- Friday, August 29, 2025: NASCAR files updated court response NASCAR and policy clarification.
What This Means for NASCAR Teams and Fans
For racing teams, the update protects charter status and reduces risk from charter sale restrictions. Fans can expect stable lineups for the 2026 NASCAR Cup Series season.
The decision also shows NASCAR’s careful handling of disputes and transparency, while the NASCAR lawsuit highlights tensions between teams, executives like Michael Jordan, and team owners like Denny Hamlin NASCAR.
Conclusion
The NASCAR charter system 2016 faces a major test as 23XI Racing and FRM defend their racing team charters. With inactive charters secured and charter transfer rules clarified, the 2026 NASCAR season will proceed with fewer uncertainties.
Upcoming court hearings NASCAR and NASCAR legal filings will shape the final outcome, affecting teams, fans, and the long-term NASCAR business impact, while maintaining fairness across the Cup Series.
