NASCAR Antitrust Battle Intensifies as Explosive Text Messages and “Smoking Gun” Documents Surface in Court

On Thursday, August 28, 2025, a Charlotte, North Carolina, courtroom became the stage for a heated showdown between NASCAR and two of its teams, 23XI Racing and Front Row Motorsports (FRM), as part of an ongoing antitrust lawsuit and countersuit.

–by Mark Cipolloni–

The 90-minute hearing, presided over by U.S. District Judge Kenneth D. Bell, laid bare the deep-seated animosity between the parties, with previously redacted text messages and documents revealing a contentious battle over NASCAR’s charter system and allegations of monopolistic practices. The revelations, described as “smoking gun” evidence by the teams, underscored the high stakes of the dispute, with both sides airing grievances that could reshape the future of stock car racing.

A Contentious Charter Dispute

At the heart of the lawsuit is the NASCAR charter system, which guarantees 36 teams entry into every Cup Series race and a larger share of revenue compared to non-chartered “open” teams. 23XI Racing, co-owned by NBA legend Michael Jordan, Cup Series driver Denny Hamlin, and business associate Curtis Polk, along with FRM, owned by Bob Jenkins, refused to sign NASCAR’s 2025-2031 charter agreement last September, citing unfair terms.

The teams filed an antitrust lawsuit against NASCAR and its chairman, Jim France, accusing the sanctioning body of monopolistic practices that enrich the France family at the expense of teams, drivers, sponsors, and fans.

NASCAR, in turn, countersued, arguing that 23XI and FRM forfeited their rights to their six combined charters by not signing the agreement. The sanctioning body has expressed plans to sell these charters to other interested parties, a move the teams claim would cause “irreparable harm” by potentially forcing them out of business after the 2025 season. Thursday’s hearing focused on the teams’ request for a preliminary injunction to restore their chartered status through the end of the season and prevent NASCAR from transferring their charters before the trial on December 1, 2025.

Explosive Text Messages Reveal Deep Hostility

The hearing took a dramatic turn when previously redacted text messages were made public, exposing raw emotions and mutual distrust. 23XI and FRM presented communications from NASCAR executives, including President Steve O’Donnell and Commissioner Steve Phelps, which the teams argue demonstrate anti-competitive intent. In one exchange, O’Donnell wrote, “F*** the teams,” describing a potential return to a 1996 model as a “dictatorship, motorsport, redneck, southern, tiny sport.” (Reference)

Phelps responded to a comment from Executive Vice Chair Lesa France Kennedy about a “productive” April 2024 meeting with teams by calling it “insanity” and insisting that their deal should provide “zero wins” for the teams. A NASCAR source claimed O’Donnell’s remarks were taken out of context, suggesting he was advocating for the teams against the France family, which led to higher revenue offers.

On the teams’ side, the rhetoric was equally fiery. Michael Jordan, in a text to Curtis Polk, called Joe Gibbs Racing and other teams that signed the charter agreement “p******” for not supporting 23XI’s fight, adding, “Teams are going to regret not joining us.” Denny Hamlin expressed his “despise of the France family runs deep” in a message, while 23XI President Steve Lauletta suggested to Hamlin that waiting for Jim France’s death might be the “best investment path” for the team’s future.

These exchanges underscored the personal and professional rift between the parties, with Judge Bell warning both sides against letting their “animosity inconvenience” the court.

“Smoking Gun” Evidence and Antitrust Allegations

The teams’ attorney, Jeffrey Kessler, labeled the NASCAR executives’ messages as “smoking gun” evidence of monopolistic behavior, arguing that they reveal a deliberate strategy to suppress competition. Kessler pointed to NASCAR’s efforts to lock down Cup Series tracks, such as those owned by Speedway Motorsports, to prevent a rival series from emerging, as well as intellectual property restrictions on the NextGen car that limit teams’ ability to race outside NASCAR’s control. These actions, the teams claim, violate antitrust laws by maintaining NASCAR’s dominance over stock car racing.

NASCAR’s attorney, Christopher Yates, countered that the sanctioning body, as a private business, cannot be forced to work with teams it does not want to, especially given the harsh criticisms from Hamlin, Jordan, and Polk. Yates argued that selling the disputed charters to new entrants would “inject valuable innovation and investment” into the sport, while restoring 23XI and FRM’s charters would harm existing charter teams by diluting revenue due to the system’s scarcity-driven value model.

Judge Bell challenged this, questioning why NASCAR couldn’t issue one of its four available charters to a new entrant instead, warning that a loss in the December trial could force NASCAR to sell tracks, the ARCA Racing Series, or even restructure the charter system entirely.

Financial Stakes and Driver Concerns

The financial implications of the dispute are significant. Chartered teams receive substantially higher payouts than open teams, and 23XI’s driver Tyler Reddick has a contract clause allowing him to leave if his car loses chartered status, a situation Kessler noted has already led to breach notices from Reddick and sponsors.

Both 23XI and FRM have expanded to three-car teams for 2025, with 23XI fielding Reddick, Bubba Wallace, and Riley Herbst, and FRM running Todd Gilliland, Noah Gragson, and Zane Smith. Losing their charters could jeopardize their financial stability and competitive viability.

Michael Jordan’s Resolve and the Road Ahead

Outside the courthouse, Michael Jordan spoke briefly, emphasizing his commitment to the sport’s betterment. “I’ve always said I want to fight for the betterment of the sport,” Jordan said. “The point is that the sport itself needs to continually change for the fans as well as for the teams… I look forward to going down with fire.”

Denny Hamlin, while restrained by his lawyers from commenting extensively, tweeted humorously, “My lawyers said don’t tweet. So this is me not doing that. Hope everyone had a great day!”

Judge Bell is expected to rule on the preliminary injunction next week, after the first playoff race of the 2025 season, where Reddick, Wallace, and Hamlin (driving for Joe Gibbs Racing) are competing. The outcome will determine whether 23XI and FRM can race as chartered teams through the season’s end or face the financial strain of open status. With the trial set for December 1, 2025, and NASCAR’s motion to dismiss scheduled for January 8, 2026, the battle promises to remain a focal point in NASCAR, potentially reshaping its governance and competitive landscape.

The hearing exposed not only legal arguments but also the raw emotions driving this high-stakes conflict, setting the stage for a pivotal moment in stock car racing’s history. As both sides dig in, the sport’s fans, teams, and stakeholders await a resolution that could redefine NASCAR’s future.