Per today’s ruling, 23XI Racing and Front Row Motorsports could see all six charters revoked
Ahead of the 2025 season, 13 of 15 teams signed into a new charter agreement with NASCAR. 23XI Racing and Front Row Motorsports elected not to sign that agreement.
Charters are NASCAR’s version of team franchises. Charter teams earn a much larger portion of the purse from each race as the revenue is shared between all 36 charter owners.
23XI is owned by Michael Jordan, three-time Daytona 500 winner Denny Hamlin and Curtis Polk. FRM is owned by Brad and Bob Jenkins.
Instead of singing the new agreement, the two NASCAR Cup Series teams went to court. They opened an anti-trust lawsuit in search of more favorable charter teams for the teams.
Related: NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
23XI Racing and Front Row Motorsports file an injunction to allow them to race with charters
Without signing the agreement, NASCAR was set to claim two charters from both teams. The teams argued that they couldn’t sign the agreement as a line in the new charter agreement prevented teams from opening lawsuits against NASCAR.
23XI Racing and Front Row Motorsports filed for an injunction to allow them to compete as charter teams while the lawsuit is ongoing. Despite not signing the new charter agreement, that ruling allows them to race as charter teams.
Each team also purchased an additional charter. Each team now holds three charters each.
Related: NASCAR teams will race with charters while lawsuit ongoing
NASCAR appeals injunction ruling seeking to take away charters from teams
NASCAR filed an appeal of that ruling. Today, the U.S. Court of Appeals overturned the previous preliminary injunction.
The teams could now lose all three charters. That includes the two they previously had as well as the additional charter that each team purchased ahead of the 2025 season.
This would cause 23XI Racing and Front Row Motorsports to race as Open teams. They would not to qualify on time and would not be guaranteed a starting position in each race.
Related: NASCAR teams comment as motion to dismiss lawsuit is denied
When does this ruling go into action?
Three judges from the appeals panel made the ruling.
However, the teams now have an option for the case to be heard by the entire appeals panel. They would need to request that hearing in the next 14 days.
If the teams elect not to do that, then the ruling from today will go into effect in 21 days.
The original antitrust lawsuit will still continue. This ruling is just an injunction related to charters as the lawsuit is ongoing. However, that antitrust case could take years to be completed.
23XI Racing has stated that their driver contracts require the team to provide a charter entry. This could have major consequences moving forward.
Brad Keselowski says the NASCAR lawsuit is a threat to the sport
23XI Racing Driver Lineup:
– Bubba Wallace (No. 23)
– Tyler Reddick (No. 45)
– Riley Herbst (No. 35)
Front Row Motorsports Driver Lineup:
– Noah Gragson (No. 4)
– Todd Gilliland (No. 34)
– Zane Smith (No. 38)
Two of the six drivers above are currently inside the playoff cut line. This weekend, the NASCAR Cup Series is back on track at Michigan International Speedway.
NASCAR points after Kansas Speedway
Update: Attorney for the teams issues a statement
After today’s ruling, the following statement was released:
“We are disappointed by today’s ruling by the Fourth Circuit Court of Appeals and are reviewing the decision to determine our next steps,” attorney Jeffrey Kessler opened.
“This ruling is based on a very narrow consideration of whether a release of claims in the charter agreements is anti-competitive and does not impact our chances of winning at trail scheduled for December 1.”
“We remain confident in our case and committed to racing for the entirety of this season as we continue our fight to create a fair and just economic system for stock car racing that is free of anticompetitive, monopolistic conduct.”
