23XI Racing and Front Row Motorsports Face Existential Threat from NASCAR Charter Sales
Charlotte, NC — In a decisive legal move, 23XI Racing and Front Row Motorsports have warned of potential closure after the 2025 season if NASCAR proceeds with the sale of charters, as indicated in their latest court filings. The two organizations are currently competing as Open teams following a June ruling that vacated their charter status, and they are seeking a preliminary injunction to prevent NASCAR from selling its charters until the ongoing antitrust lawsuit is resolved.
According to their legal statement, "Plaintiffs will indisputably suffer irreparable harm if NASCAR is allowed to carry out its plan to immediately sell their charters to other entities before trial… This Court has already found that it is not economically viable to race as open teams on a long-term basis." They assert that the absence of charter rights for the remainder of the season would lead to loss of drivers and sponsors, further jeopardizing the teams’ futures.
23XI Racing and Front Row Motorsports currently field a total of six teams, having expanded from two charters to three through purchases from Stewart-Haas Racing. However, neither organization signed a charter agreement by NASCAR’s September deadline, complicating their viability.
NASCAR has responded by notifying the court of its intent to transfer a charter to an unnamed interested party, contingent on the outcome of the injunction ruling. The lawsuit is set to go to trial on December 1.
In their response, 23XI Racing and Front Row Motorsports accused NASCAR of maintaining "monopsony power through anticompetitive acts" that threaten their participation in the series. "NASCAR can ignore the devastating evidence against it, but it cannot hide from its impact, which is to easily satisfy Plaintiffs’ burden of proving a likelihood of success on the merits," they asserted.
The implications of this case extend beyond the teams involved, raising important questions about competitive dynamics and the future landscape of NASCAR.
