The courtroom showdown between NASCAR and two of its Cup Series teams, 23XI Racing and Front Row Motorsports, is heating up, and the stakes couldn’t be higher. At the center of the battle is the NASCAR charter system, which the teams say unfairly limits competition. In response, NASCAR is moving to settle the charters previously held by these squads, adding another twist to an already dramatic saga. As the drama unfolded, NASCAR president Steve O’Donnell stressed the organization’s priority. And NASCAR is on top for him.

NASCAR is accelerating its efforts to sell the charters previously held by 23XI Racing and Front Row Motorsports, following a series of legal setbacks for the teams. In a recent court filing, NASCAR stated that it has received interest from multiple parties, including Cup teams and others outside the sport, eager to purchase the six charters in question. To facilitate the sale, NASCAR has proposed a 30-day bidding process. The urgency of this move is underscored by the upcoming court hearing on August 28, just days before the start of the cup series playoff. And now, NASCAR President Steve O’Donnell has weighed in on the situation.

“Still not sure what they’re even asking for,” says Steve O’Donnell amid lawsuit battle

O’Donnell said,” I think it’s important to go back to—I mean, I can’t get into the specifics of the litigation—but I think everyone knows the teams sued us. We didn’t ask for this. We’re still not sure what they’re even asking for. Candidly, in terms of an outcome, what we’ve seen really doesn’t have anything to do with why the lawsuit was brought. It’s a little bit perplexing.”

While defending NASCAR wholeheartedly, this development follows a series of legal challenges faced by 23XI Racing and FRM. Earlier this year, a US court of appeals ruling overturned a preliminary injunction that had allowed the teams to continue racing with chartered status. Without charters, the team now competes as open entries, which means they must qualify for each race based on performance rather than guaranteed starting positions. The loss of charter status has significant financial implications for both teams. Charter teams receive guaranteed race entries and a share of the sports revenue, providing a financial safety net. Without the status, the teams face increased uncertainty and potential financial restraint.

O’Donnell went on to say, “At the end of the day, NASCAR is certainly going to—we’ve got an 80-year history for our sport. We’ve got owners who are signed up with charters, and we’re working hard every day to grow the sport. I think what’s probably most disappointing, even for me personally, is that we’re spending time on this topic versus growing the sport.” And in response to these challenges, both teams have filed a request for a temporary restraining order to retain their charter status through the remainder of the 2025 season. They argue that losing charter status mid-season would cause irreparable harm to their operations and the livelihoods of their drivers and staff.

Steve held his ground and concluded by saying, “I’m not sure our fans want to hear about lawsuits a lot of the time. I know it’s out there, but we want to be talking about racing, future stars, where we are going to race next, and horsepower—and have those debates. Listen, we’ll defend the sport and where we are. Hopefully, something can be resolved. But right now, we’re concentrating on just growing the sport—that’s at least my job on a day-to-day basis.”

As the legal proceedings continue, the fate of the charters and the teams’ future in NASCAR hangs in the balance. The outcome of the August 28 hearing and the trial set for December 1 will likely have lasting implications for the sports charter system and the teams involved. And after complaining about the Next Gen cars, Denny Hamlin, 23XI’s co-owner, has another pressing matter to attend to.

Denny Hamlin fires back at NASCAR’s attempt at distracting

Denny Hamlin has openly criticized NASCAR for creating distractions amid ongoing legal disputes, accusing the stock car association of diverting attention just as the Cup Series season intensifies. The public feud involves Hamlin challenging NASCAR leadership and the schedule while raising allegations of anti-competitive behavior.

Tensions boiled over when NASCAR responded to the teams’ preliminary injunction just days before the August 28 court hearing. Ambulance suggested the schedule drop was no accident; it was just a way to shift everyone’s focus from the lawsuit. Taking to social media, Hamlin didn’t hold back. He wrote, “This is where our schedule would come out to divert your attention.”

Hamlin’s post didn’t fly under the radar. He hinted that calling out NASCAR leadership might come with consequences, but he wasn’t worried about speaking his mind. With the Daytona race coming up and the next legal hearing coming around the corner, the tension between Hamlin, FRM, and NASCAR is only heating up. Fans and drivers alike are watching closely to see if this dispute shakes things up in the sport or just keeps the drama rolling.