NASCAR's ongoing lawsuit with 23XI Racing and Front Row Motorsports has brought a ton of financial documents to light. And with that new spotlight on NASCAR's financials, NASCAR legend Kenny Wallace is nervous for the future of the sport he loves.
In a recent video shared on X, the former Busch Series Rookie of the Year believes that "Pandora's Box" has been opened through the NASCAR court case. He believes that the case has exposed how bad the company's much-maligned charter system is for the sport and believes that everyone in the entire industry hates how it's changed the sport.
“Now, NASCAR was ruling, and they were ruling hard,” Wallace said, comparing the sport to the Roman Empire. “And they opened up Pandora’s Box by giving these teams what they asked for. They gave them the charter system. And there’s that old saying, ‘Be careful, you give them an inch, they’ll take a mile.’ The rules were not in place properly at NASCAR for them to open this up and give them a charter… NASCAR had good rules in place, and then they ruined it by opening up a charter system. When you give somebody an inch, they take a mile. Now, hopefully things will turn out for the better, but right now, this is not good. Because everybody in the industry does not like this.”
“Coffee with Kenny”
NASCAR just opened up its own Pandoras Box 😳 pic.twitter.com/EX8mTLWWPi
— Kenny Wallace (@Kenny_Wallace) October 30, 2025
The Charter System
NASCAR's charter system, introduced in 2016, was designed to bring financial stability and long-term value to team ownership in the Cup Series, the sport’s top division. A charter guarantees a team entry into every race of the season, sparing it from the risk of failing to qualify. NASCAR issued 36 charters among 40 possible starting spots, meaning four “open” teams without charters can still attempt to qualify each week. Teams with charters receive a guaranteed portion of race purse money and postseason revenue, similar to a franchise model seen in other professional sports. This system gave teams a tangible asset that can be bought, sold, or leased, creating a more predictable business environment and encouraging long-term investment.
The Reality
However, the charter system has also generated controversy and debate. Smaller teams and new owners have found it difficult to enter the sport because of the high cost of acquiring a charter, which can exceed tens of millions of dollars. Some critics argue that it favors established organizations like Hendrick Motorsports, Joe Gibbs Racing, and Team Penske, while limiting opportunities for independent teams. As the initial charter agreements approach renewal, negotiations between NASCAR and the Race Team Alliance (RTA)—a group representing team owners—have intensified, focusing on revenue sharing, ownership rights, and the system’s long-term structure. The outcome of these talks will likely determine how sustainable and fair the NASCAR ownership model remains in the years ahead.
This story was originally reported by The Spun on Oct 30, 2025, where it first appeared in the NASCAR section. Add The Spun as a Preferred Source by clicking here.
Read the full article here