After today’s court ruling, 23XI Racing and Front Row Motorsports are likely to lose benefits of all 6 NASCAR charters
A black cloud of drama is currently circling the business end of the NASCAR garage.
Charters are NASCAR’s version of franchises. Owning a charter guarantees a starting position in every race. Charter teams also earn a significantly larger percentage of the purse, over open (non-chartered) teams.
23XI Racing and Front Row Motorsports each own three charters. A total of six.
For 2025, teams signed a new charter agreement. However, Front Row Motorsports and 23XI Racing elected not to sign and instead they opened an antitrust lawsuit against NASCAR.
NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
23XI Racing and Front Row win preliminary injunction to race as charter teams while lawsuit is ongoing
The teams stated that the charter agreement had a line that prevented teams from opening a lawsuit against NASCAR. Thus, the team elected not to sign.
The teams asked the courts in a preliminary injunction to allow the teams to race as chartered teams while the lawsuit is ongoing, despite not signing the new agreement.
Initially, the court allowed the teams to race as chartered entries as the teams won the preliminary injunction.
NASCAR teams will race with charters while lawsuit ongoing
NASCAR wins appeal (decision reversed)
However, NASCAR appealed the ruling on the preliminary injunction. And they won the appeal.
With the ruling, the teams are forced to run without charter benefits. They will have to race as an Open team.
The teams were given 21 days to appeal. Today, the courts denied the teams request for a full rehearing.
NASCAR wins court appeal to claim charters from 23XI / FRM
23XI Racing and Front Row Motorsports expected to lose all charters
Now it appears that 23XI Racing and Front Row Motorsports will lose benefits of all six charters. That will likely take effect at Dover Motor Speedway.
All six cars will continue to race. However, they’ll need to qualify for every race as they will not be granted any provisionals.
It remains unclear if the additional purse money will be emmeditaly distributed to the 30 charter teams. Or if the funds will be held in escrow.
23XI and Front Row Motorsports will continue with the antitrust lawsuit. If they lose in court, it’s highly unlikely the teams will get the charters returned.
The most recent sale of just one charter was $45M. With six charters at stake, it’s an estimated asset value of $270M lost for the teams.
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)
NASCAR points after Chicago; In-Season Challenge Bracket Update
Statement from 23XI/Front Row attorney Jeffrey Kessler
After today’s ruling, Kesslet issued the following statement:
“We are disappointed by the Fourth Circuit Court of Appeals decision to deny our request for a full rehearing,” Kessler opened.
“This decision has no bearing on the strength of our antitrust case, which we look forward to presenting at trial. We are committed to racing this season as we continue to fight for more competitive and fair terms for all teams to unsure the future of the sport, and remain fully confident in our case.”
Update: Monday July 14
23XI and Front Row Motorsports have filed documents in U.S. District Court Monday seeking a temporary restraining order and preliminary injunction. They aim to retain charters, days before losing it.
In the filing, the teams noted that NASCAR, “signaled its intention to immediately move or sell (teams) charters to other entities — putting (23XI Racing and Front Row Motorsports) in irreparable jeopardy of never getting their charters back and going out of business.”
NASCAR issued the following statement about the filing:
“It is unfortunate that instead of respecting the clear rulings of the Fourth Circuit, 23XI Racing and Front Row Motorsports are now burdening the District Court with a third motion for another unnecessary and inappropriate preliminary injunction,” NASCAR opened.
“As both the Fourth Circuit and the District Court suggested, NASCAR has made multiple requests to 23XI Racing and Front Row Motorsports to present a proposal to resolve this litigation. We have yet to receive a proposal from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit.”
They concluded, “We will defend NASCAR’s integrity from this baseless lawsuit forced upon the sport that threatens to divide the stakeholders committed to serving race fans everywhere. We remain focused on collaborating with the 13 race teams that signed the 2025 charter agreements and share our mutual goal of delivering the best racing in the world each week, including this weekend in Dover.”
NASCAR commissioner speaks on the antitrust lawsuit
