NASCAR Responds to Charter Status Dispute Ahead of Court Hearing
Date: October 2023
NASCAR has formally opposed the claims of 23XI Racing and Front Row Motorsports regarding their lack of charter status, stating the teams will qualify for all remaining races this season despite not holding a charter. A hearing on this matter is scheduled for August 28, which will assess whether these teams should be recognized as charter holders.
In a recent filing, NASCAR highlighted the revised rule established in July allowing up to six Open teams to secure race entries based on owner point rankings. Both 23XI and Front Row possess six combined entries, ensuring their participation in forthcoming races regardless of charter status after they opted not to sign the 2025 charter agreement—an accord endorsed by the remaining 13 teams in the Cup Series.
NASCAR contends that the two teams cannot claim harm from the absence of charters because they were fully aware of the charter agreement details prior to its expiration in December 2024. The organization’s filing included a strong assertion: “Plaintiffs’ theoretical inability to obtain Charters post-trial also does not justify NASCAR from selling or transferring Charters, because Plaintiffs do not have Charters now due to their own strategic choices.”
Historically, both teams had four charters during the 2024 season and acquired an additional charter from Stewart-Haas Racing. NASCAR maintains that their decision not to execute the charter agreement nullifies any entitlement to future charters, emphasizing the competitive interest in these assets from prospective buyers.
Additionally, NASCAR rejects allegations of monopoly power, referencing significant financial increases to team compensation—28% in the 2016 charter agreement and 62% in 2025—as evidence against such claims. According to NASCAR’s filing, “NASCAR pays Teams more than even Formula 1 as a percentage of profit… Plaintiffs ignore the pay raises the Teams received."
NASCAR Commissioner Steve Phelps reinforced the organization’s position, noting that charter holders are permitted to compete in various motorsport series, including the CARS Tour, and emphasized that both teams have never sought approval for such endeavors.
With a history of disputes over charter status and racing rights, the upcoming court hearing will be critical as both 23XI Racing and Front Row Motorsports aim for a re-evaluation of their standing ahead of the impending NASCAR Cup Series playoffs.
