NASCAR committed to charter system despite lengthy antitrust lawsuit

Despite a nearly 13-month courtroom battle, NASCAR remains committed to its current charter system. 

The system, introduced to the Cup Series in 2016, is a franchise-like agreement that gives charter owners guaranteed entry into races and a larger share of the allotted prize money. 

But the system came under fire last fall when 23XI Racing and Front Row Motorsports refused to sign the new charter agreement, citing NASCAR as a monopolistic organization that wasn't giving teams a fair share of money. 

That led to an ongoing antitrust lawsuit filed by 23XI/FRM against NASCAR and the France Family in October 2024, with a trial scheduled for Dec. 1. 

In the annual 'State of the Sport' address on Friday, NASCAR commissioner Steve Phelps and NASCAR president Steve O'Donnell spoke to the media, with Phelps reading a statement regarding the litigation. Phelps asked the media members in attendance to refrain from asking questions about the case. 

"In each of the past two years, I’ve sat here and told you the same thing: healthy race teams are critical to our sport," Phelps said. "We’ve been true to our word. From the outset, we’ve been clear, this is not an anti-trust case.

"The 2025 charter agreement is an improvement on the 2016 framework with enhancements that reflect real progress for teams and the sport, including over $3 billion in guaranteed payments to the teams, enterprise value that is roughly $1.5 billion now to the race teams, guaranteed starting positions each week that allow teams to sell sponsorship on the best billboards in sports, the Next Gen car, and charters guaranteed for 14 years until at least 2039, plus an obligation to negotiate in good faith beyond that."

Steve Phelps: Charters are 'fair,' 'equitable'

Despite at least two Cup Series organizations citing their frustrations with the system, Phelps made it clear that charters aren't going anywhere anytime soon. 

The bottom line here is NASCAR is committed to charters," Phelps said. "I also want to be clear: the France family started NASCAR in 1948 using their own resources, grit and ingenuity. They have taken countless personal and financial risks, investing billions of dollars and untold hours into growing this sport to create opportunity for teams to race in front of fans for nearly eight decades.

We remain committed to doing what is best for the sport of stock car racing, for the race teams we partner with, the many stakeholders who engage with it, the people throughout the garage that depend on it, and of course the millions of fans that love it like we do, and just want to see more of the best racing in our history."

Phelps went on to call the charter system "fair" and "equitable." 

Ironically, one of the most prominent faces in the ongoing litigation is Cup Series driver Denny Hamlin, who is one of the four drivers eligible to win Sunday's Cup Series championship at Phoenix. O'Donnell brushed off a question about NASCAR officiating, specifically any penalties or decisions made on Sunday that could negatively affect Hamlin, who has said he believes he's been treated fairly by the sanctioning body. 

"We have all the technology in place, " O'Donnell said. "We have an unbelievable officiating team. I think that question actually is a bit absurd. I’m pretty confident in the decisions we’ll make and the transparency we’ve had throughout the year."

The 2025 NASCAR season is set to conclude this weekend at Phoenix Raceway with the Cup Series championship race on Sunday afternoon. 

Quotes provided by NASCAR Media.