As of now, 23XI and Front Row Motorsports will both race with 3 charters each in 2025
NASCAR charters are attached to team entries and guarantee a starting position for all 36 charter holders. The charter teams also earn significantly more than open teams from race results.
Charters are NASCAR’s version of franchises.
13 of 15 charter teams elected to sign the 2025 agreement. 23XI Racing and Front Row Motorsports elected not to sign and instead they opened an antitrust lawsuit against NASCAR.
NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
In the new charter agreement, there was a line that teams couldn’t open a lawsuit against NASCAR. That’s just one of the reasons both 23XI Racing and Front Row Motorsports elected not to sign the agreement.
NASCAR was intending to take those charters from the teams. They were going to race with just 32 charters, instead of 36 in 2025.
However, the teams asked the court for a preliminary injunction in their case. They asked that the judge grant them to race as a charter team in 2025, while the lawsuit is ongoing.
Additionally, each team purchased an additional charter from Stewart-Haas Racing following the closing of that team. NASCAR hadn’t approved the transfer of those two additional charters.
NASCAR loses appeal of preliminary injunction
Last week, the judge ruled in favor of the teams, on both counts. He ruled to allow both teams to race as charter teams. And, he also approved the transfer of charter.
Court rules in favor of teams on multiple items in NASCAR lawsuit
NASCAR appealed that ruling. They were asking for the transfer of charters to be delayed.
Today, the court heard the appeal from NASCAR. And, they have ruled in the same way, in favor of the teams.
The charter transfer requested by Front Row Motorsports will now be allowed to proceed.
The additional charter purchased by 23XI Racing was not asked for in today’s motion. However, the Judge noted if 23XI asks for it, “the Court will promptly consider that motion on its own merits.”
This is a massive win for 23XI Racing and Front Row Motorsports.
However, NASCAR still has an option to appeal in the US Court of Appeals.
NASCAR requests lawsuit to be dismissed
23XI Racing and Front Row Motorsports statement
Jeffrey Kessler, the attorney for both teams issued the following statement after the ruling:
“We welcome today’s decision by Judge Bell to Denny NASCAR’s motion to stay, which will allow 23XI and Front Row Motorsports to compete as chartered teams in the 2025 season and enable Front Row Motorsports to complete their purchase of a third charter from Stewart-Haas Racing.”
“Today’s decision represents an important step in advancing my clients’ case against NASCAR and their monopolistic practices, while protecting their drivers, race teams, sponsors and the fan experience.”
“We are confident in the strength of our case and will continue this fight for a more competitive and fair sport for everyone involved in the coming year.”
NASCAR calls team lawsuit “baseless”
Update
NASCAR has agreed to an injunction regarding the third 23XI Racing charter. This comes after the judge allowed the injunction of the charter purchased by FRM.
The judge likely would have ruled the same way for 23XI Racing. This currently puts FRM and 23XI as teams with 3 charters in 2025.
NASCAR still has the option to appeal. They will likely send the ruling to the U.S. Court of Appeals.
Denny Hamlin says it costs $18M to run a NASCAR team
Update: January 3
NASCAR has filed an appeal of the injunction with the US Court of Appeals.
The auto racing sanction is appeal the ruling that allows 23XI and FRM to run at charter teams in 2025. They are also appealing the transfer of charters from SHR.
Recently, Front Row Motorsports announced their driver lineup for 2025. This comes after the court approved the transfer of the charter purchase from SHR.
Zane Smith confirms NASCAR ride for 2025 and beyond
Noah Gragson has found a NASCAR ride for 2025
Leave a Comment
You must be logged in to post a comment.