Fourth Circuit Ruling Impacts 23XI Racing and Front Row Motorsports’ Charter Status
In a pivotal decision, the U.S. Court of Appeals for the Fourth Circuit upheld a lower court’s ruling against 23XI Racing and Front Row Motorsports (FRM), denying the two organizations the preliminary injunction necessary to operate as chartered teams during NASCAR’s summer stretch. This ruling complicates their competitive status, with potential ramifications for the upcoming 2025 Cup Series.
Following their decision to forgo new charter agreements for 2025 in September, 23XI and FRM filed a lawsuit in October 2024, arguing that NASCAR’s charter process violated antitrust laws. Initially, a district court granted their request for a preliminary injunction in December, allowing them to operate under the existing Charter Agreement. However, the Fourth Circuit overturned this ruling, asserting that the plaintiffs had not sufficiently demonstrated the likelihood of success on their antitrust claims.
Judge Paul V. Niemeyer, writing for the panel, stated, “We have found no support… that a business entity… violates the antitrust laws by requiring a prospective participant to give a release for past conduct as a condition for doing business.” As a result of this ruling, 23XI and FRM could lose their four existing charters and the two additional charters they acquired from Stewart-Haas Racing, forcing them to race as open teams amidst ongoing legal uncertainties.
Both teams will have 14 days to request a rehearing. If denied, the ruling will take effect, starting with the race weekend at Atlanta’s EchoPark Speedway. While it’s unlikely that this outcome will prevent any of their six drivers—Bubba Wallace, Tyler Reddick, Riley Herbst, Noah Gragson, Todd Gilliland, and Zane Smith—from making the Cup Series field, the loss of charters would pose significant financial challenges, primarily due to reduced purse and points fund distributions.
Attorney Jeffrey Kessler, representing both teams, expressed disappointment in the ruling but maintained confidence in their continued pursuit of a fair racing ecosystem, stating, “This ruling… does not impact our chances of winning at trial scheduled for December 1.”
