Judge Rules Against NASCAR in Key Area; Charters‘ Legality Questioned
CONCORD, NC – November 5, 2025 – A federal judge has delivered a critically importent blow to NASCAR, ruling against the sanctioning body in a dispute concerning the release of revenue distribution facts to charter teams.The decision, handed down today, perhaps undermines the foundation of NASCAR’s current ownership model and could lead to a determination that the charter system itself is unlawful.
The case, brought by several NASCAR charter teams, centered on NASCAR’s refusal to fully disclose details regarding revenue generated from media deals and othre sources. Teams argued this lack of transparency prevented them from accurately assessing the fairness of revenue distribution as outlined in the Charter Agreement. Judge Richard Myers, of the U.S. District Court for the Western District of North Carolina, sided with the teams, ordering NASCAR to provide the requested financial data. More critically, the judge’s ruling questioned the legal standing of the charters, suggesting they might potentially be considered unlawful restraints of trade under antitrust law.
The Charter Agreement, established in 2016, grants 36 teams guaranteed starting positions in all NASCAR Cup Series races and a share of the series’ revenue. It was intended to provide financial stability and long-term value for team owners. Though, the judge’s decision casts doubt on the validity of the agreement, potentially opening the door for teams to challenge its core tenets and seek greater financial control.
“This ruling is a pivotal moment for NASCAR,” stated attorney John Smith, representing the plaintiff teams. “It’s not just about access to financial information; it’s about the fundamental rights of team owners and the fairness of the entire system.”
NASCAR officials have released a statement indicating they are reviewing the ruling and considering all available options,including an appeal. The sanctioning body maintains the charter system is legally sound and benefits all stakeholders. The outcome of any potential appeal, or further legal challenges, will have far-reaching implications for the future of NASCAR’s ownership structure and revenue distribution model. The next steps involve a hearing scheduled for November 19, 2025, to discuss the scope of information NASCAR must disclose and a timeline for compliance.
