23XI Racing, Front Row Motorsports, and Curtis Polk have responded to NASCAR’s amended counterclaim in the ongoing legal dispute over the Cup Series charter system, filing their official answer in federal court. Their response reiterates prior claims of alleged monopolistic behavior by NASCAR while adding a new area of concern: the Driver Ambassador Program, launched this season.
Charter System Dispute Continues in Federal Court
The legal back-and-forth began earlier this year when 23XI Racing and FRM—backed by Polk, a key figure in the Race Team Alliance (RTA)—filed suit against NASCAR, challenging the current structure of the charter agreement system. The teams argue that NASCAR exerts disproportionate control over charter terms, team revenue, and governance.
NASCAR, in its counterclaim, accused the teams and Polk of attempting to coordinate a power shift through anticompetitive means. It identifies Polk, a longtime business advisor to Michael Jordan, as a central figure in strategy sessions and negotiations opposing the league’s charter terms.
The teams’ most recent filing denies wrongdoing and frames NASCAR’s actions as part of a broader pattern of exerting excessive control over teams and their financial viability.
Driver Ambassador Program Draws New Scrutiny
While much of the filing revisits earlier legal arguments, a new point of contention was introduced: NASCAR’s Driver Ambassador Program (DAP).
Launched in 2025, the DAP is designed to incentivize drivers to increase their off-track participation in media, marketing, and fan engagement. Drivers are paid directly by NASCAR for activities outside standard race weekend duties, such as interviews, brand promotion, and public appearances.
The program includes a point system—tracked via a dedicated mobile app—with drivers earning rewards based on their involvement and reach. Top performers can earn up to $2 million per term, while all Cup Series regulars are guaranteed a base payout of $7,500.
23XI/FRM/Curtis Polk have filed answer to NASCAR's amended counterclaim. Mostly same arguments. One nugget — some teams believe Driver Ambassador Program, where NASCAR pays drivers directly based on how many/what appearances they do, interferes with team relationships w/drivers.
— Bob Pockrass (@bobpockrass) July 21, 2025
Team Concerns Over DAP Structure
Legal filings reveal that some teams view the DAP as disruptive to existing business models. They argue that the program:
Introduces Financial Conflicts: Since drivers are paid directly by NASCAR, teams worry this creates dual loyalties that may not align with team sponsorship obligations.
Complicates Scheduling and Appearances: With drivers reporting DAP activity directly to NASCAR, teams fear losing control over drivers’ availability for sponsor events.
Blurs Accountability: Teams express concern that drivers may prioritize DAP-related appearances over commitments arranged by their teams, reducing team leverage in sponsorship negotiations.
While the filings do not allege misconduct within the program itself, they frame it as part of a broader issue: NASCAR’s growing involvement in team-driver relations and its expanding role in areas historically managed by individual organizations.
What’s Next?
The lawsuit is scheduled to go to trial in December. While the Driver Ambassador Program is not the central issue, its inclusion in the latest filings signals that teams are broadening their case to include operational and structural decisions they view as overreach.
For now, NASCAR has made no indication that changes to the DAP are under consideration. The program remains active, with drivers continuing to accumulate points and payouts based on engagement metrics.
As negotiations over the future of charters continue, and with the current charter agreement set to expire after the 2025 season, legal and business developments over the next several months could help shape the sport’s long-term structure.
News in Brief: NASCAR Teams Raise New Concerns in Charter Dispute
The ongoing charter lawsuit between 23XI Racing, Front Row Motorsports, and NASCAR has taken a new turn with criticism of the Driver Ambassador Program. While NASCAR sees DAP as a way to grow the sport through direct driver involvement, some teams argue it creates tension by bypassing team oversight and complicating sponsorships. As both sides prepare for a December trial, the debate highlights deeper questions about authority, revenue, and control in the sport. Whether the court agrees remains to be seen—but the battle lines are clearly drawn.
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