Hendrick Motorsports vice chairman Jeff Gordon says NASCAR teams reached a breaking point during talks over the sport’s charter system before Michael Jordan’s 23XI Racing and Front Row Motorsports took NASCAR to court. Gordon said negotiations had shifted from collaboration to a tougher process, leaving teams with limited room to push for changes.
The dispute centered on NASCAR charters, which guarantee teams starting positions and provide a share of race revenue. Most teams accepted the 2025-2031 charter deal in 2024, but 23XI Racing and Front Row Motorsports refused to sign.
Their lawsuit later ended with a settlement that changed the future of the NASCAR charter system. Gordon, who represents Hendrick Motorsports, said the atmosphere is now more cooperative.
NASCAR Charter System Talks Hit a Wall
Gordon discussed the NASCAR charter system on the Business of Motorsports podcast with Kelley Earnhardt Miller. He said teams had made progress but eventually reached a point where talks no longer felt like a joint effort.
“We had made small steps, but we kind of got up against the wall because the negotiation became a negotiation, right? Instead of a collaboration,” Gordon said.
The NASCAR charter system began in 2016. Charters guarantee 36 teams a starting position and give owners more predictable revenue. Teams can also sell or lease charters.
The 2025-2031 agreement became a major issue. Owners wanted charters to provide stronger long-term security, while NASCAR’s proposal retained an expiration date and placed limits on ownership. Most teams signed the deal in September 2024. Hendrick Motorsports already operated four charters.
Michael Jordan’s 23XI Racing Takes Legal Action
Michael Jordan’s 23XI Racing and Front Row Motorsports rejected the agreement and sued NASCAR. The teams accused NASCAR of using its position in Cup Series racing to restrict competition and said teams were not receiving a fair share of the sport’s value.
The NASCAR charter dispute lasted about 14 months and became one of the biggest legal battles in the sport’s modern history. The case ended with a settlement that included permanent, or evergreen, charters and a more formal role for independent teams in NASCAR’s governance.
Michael Jordan’s involvement gave the NASCAR charter fight added attention, while 23XI co-owner Denny Hamlin became one of the most visible voices for the teams challenging NASCAR.
“Racing is all I’ve ever known… That’s why we were willing to shoulder the challenges that came with taking this stand. We believed it was worth fighting for a stronger and more sustainable future for everyone in the industry.”
Jeff Gordon Says NASCAR Teams Now Have More Security
Gordon said the outcome has changed how teams view long-term investment. He explained that permanent charters give organizations more confidence when committing money to drivers, crew chiefs and facilities.
“I think it allows us to invest, you know, in our campus and in our teams, you know, and feel good about where we’re at,” Gordon said.
That security matters because NASCAR teams make major investments over several years. Driver development, crew chief contracts and facility upgrades all require long-term planning.
Gordon’s comments are notable because Hendrick Motorsports signed the earlier NASCAR charter agreement. His comments instead describe how the wider NASCAR teams’ negotiating environment changed after the 23XI Racing and Front Row Motorsports lawsuit.
“And I think now that that’s behind us, I feel like we’re way more collaborative in every aspect of the business,” Gordon said.
The NASCAR charter system now gives teams greater long-term security, while the relationship between NASCAR and its teams has moved toward a more collaborative approach.
NASCAR Teams Were Running Out of Options Before Michael Jordan’s Fight Exposed a Bigger Problem, Jeff Gordon Reveals