23XI Racing and Front Row Motorsports could lose NASCAR charters mid-season

U.S. Court of Appeals is set for a ruling and it could bring chaos to the NASCAR Cup Series

13 of 15 teams signed a new charter agreement with NASCAR that began with the 2025 season. 23XI Racing and Front Row Motorsports elected not to sign and instead opened a lawsuit against NASCAR seeking more favorable charter terms.

NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports

23XI Racing is owned by Michael Jordan and Denny Hamlin. Front Row Motorsports is owned by Bob and Brad Jenkins.

That lawsuit is ongoing.

NASCAR intended to claim the charters as the teams elected not to sign the new agreement. Meanwhile the teams filed an injunction noting that a line in the new charter agreement would have prevented them from opening the lawsuit.

A judge ruled in favor of the teams, granting the injunction. That has allowed 23XI and FRM to compete as charter teams despite not signing the new charter agreements.

In doing so, he also noted the courts would be able to unwind charter purchases, if NASCAR wins the anti-trust lawsuit.

NASCAR filed an appeal on that injunction with the U.S. Court of Appeals.

Judge rules on preliminary injunction in NASCAR lawsuit

May 9th update

On Friday, the court heard NASCAR’s appeal to the injunction ruling allowing 23XI Racing and Front Row Motorsports to operate as a charter team. It was heard by a three person panel at the U.S. Court of Appeals.

After hearing from both sides, the U.S. Court of Appeals is set to reach a ruling. Their ruling could come in weeks to months.

“There’s no other place to compete,” Jeffrey Kessler, lawyer for the teams told the judges. “It will cause havoc to overturn this injunction in the middle of the season.”

“It seems you want to have your cake and eat it, too,” Judge Niemeyer told Kessler.

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What if 23XI Racing and Front Row Motorsports lose their charters?

If the judges rule in favor of NASCAR regarding the injunction, it would mean that 23XI Racing and Front Row Motorsports could lose two of their charters in the middle of the season.

Additionally, each team purchased an additional charter in the off-season. The purchase of that charter could also be reversed. In that case, both teams would lose all three charters.

Without a charter, 23XI and FRM would need to qualify for every race. There would be no guaranteed starting position.

Beyond that, charter teams earn significantly more money than Open (non-charter teams). NASCAR has stated that if 23XI and FRM lose their charters then their piece of the shared pie would go into the overall charter funds for the other 30 charters.

In the middle of the season, 23XI and FRM could also lose their drivers and potentially sponsors. Drivers have contracts with the teams that require the teams to supply a charter backed car for each race. Without a charter, drivers could walk, mid-season.

If the appeals court rules in favor of the teams, then the antitrust lawsuit continues and the teams will keep their charters while the lawsuit is ongoing.

NASCAR opens new lawsuit against teams

NASCAR accused of threatening to revoke charters for agreement

Links

NASCAR | 23XI Racing | Front Row Motorsports