Apart from the playoffs, one of NASCAR’s most closely watched storylines is the ongoing charter lawsuit. Since last year, Michael Jordan and Denny Hamlin’s 23XI Racing, along with Front Row Motorsports, have challenged the system, arguing it limits competition and favors select teams. NASCAR proposed a judicial settlement conference with a federal judge, but the teams prefer to continue with mediator Jeffrey Mishkin, who is familiar with the case. Now, Judge Kenneth D. Bell has issued a new directive that merges both requests but could still shift the course of the dispute altogether.

December-bound NASCAR lawsuit gets a new update

Veteran NASCAR journalist Bob Pockrass recently tweeted the latest on this case. “According to him, Judge Bell has ordered NASCAR, 23XI, and Front Row participate in a settlement conference with the current mediator Jeffrey Mishkin on Oct 21. The hearing on motions for summary judgment and exclude witnesses has been moved to Oct 23.” As per this, the judicial settlement conference will take place at 9:30 a.m. on Oct. 21 in the U.S. District Court for the Western District of North Carolina in Charlotte, with Mishkin continuing as mediator. This middle-ground approach aims to encourage good-faith negotiation before the December 1 trial.

The legal battle, which began in October 2024, has already included previous mediation attempts through former NBA executive Jeffrey Mishkin. Like the in-person mediation session held on August 5, 2025, overseen by Mishkin, with multiple phone calls between the parties’ counsel before and after the session. However, a resolution wasn’t reached. But, this time, 23XI Racing and Front Row Motorsports’ attorney Jeffrey Kessler welcomed the development, saying:

“We welcome Judge Bell’s decision to bring all parties together to engage in a meaningful resolution. We remain open to a settlement that genuinely benefits the sport and its fans. The goals my clients have raised are clear, and the teams have affirmed them in their own declarations. From the outset, our objective has been unwavering: to secure lasting stability and growth for every team, their employees, and the sport. It’s time for all parties to step up and deliver.”

As things stand, the charter system has reportedly generated over $1.5 billion in equity since 2016. This figure has also been a point of contention. 23XI Racing and Front Row Motorsports allege that the current dynamic stifles competition. The teams believe that this, in turn, unfairly benefits NASCAR and select teams.

The lawsuit challenges the legality of this system under federal antitrust laws. If this goes forward, the case has the potential to reshape the governance and financial landscape of NASCAR.

As the settlement conference approaches, the parties involved remain under pressure to reach an agreement. The court’s involvement and the scheduled hearings indicate a concerted effort to resolve the dispute before the scheduled trial on December 1, 2025. One thing’s sure, whatever the outcome is, it will have significant implications for the future of NASCAR and its teams.

Teams voice support for charters

If settlement talks fail, the usual December trial will take place between NASCAR, 23XI Racing, and Front Row Motorsports. Ahead of this, several team owners have weighed in on the charter system at the heart of the dispute. While the lawsuit challenges certain practices within the system, team executives emphasize the economic stability that charters provide.

Rick Hendrick of Hendrick Motorsports said, “The charter agreement is critical to the stability of the NASCAR ecosystem.” His statements implied a shared understanding of the system’s importance. Richard Childress of Richard Childress Racing added, “Given the challenging business model and economics that Cup Series team owners face, charters are essential to creating enterprise value for teams.” Just like Hendrick’s, this was another voice in favor of charters.

Roger Penske offered his own reasoning for signing the new charter agreement. He noted that “NASCAR was not going to move any further on their document and it was time for our team to go forward.” Penske, who implemented a similar charter system in IndyCar, reinforced the value of structured agreements. Other prominent teams did not submit statements, leaving the conversation primarily among the charter-holding stalwarts. Unsurprisingly, 23XI co-owner Denny Hamlin had a lot to say on this stance.

The JGR driver reflected on NASCAR’s latest filings following last weekend’s Charlotte Roval race. “Nothing surprised me,” Hamlin said. “I didn’t think it was super helpful for them. Honestly, I thought it was more helpful for us. Obviously, as [the team owners all] said, they were asked to do it.” 

Hamlin felt that these statements, which were supposed to help NASCAR, are instead helping 23XI and Front Row as they expose the reality of how NASCAR negotiates. The way the owners are feeling pressurized, this is the proof that Hamlin is pointing it which is exactly the point of what his lawsuit is challenging.