NASCAR Halts Charter Transactions Amid Ongoing Litigation
In a significant development, NASCAR has announced it will refrain from selling or transferring charters related to the ongoing litigation involving 23XI Racing and Front Row Motorsports until the trial concludes. This decision follows a recent court hearing regarding a preliminary injunction requested by the two teams, which seek to retain charter status through the end of 2025 and prevent any movement of charters in question.
The court had previously vacated an injunction in June, and NASCAR’s latest notice aims to address the concerns articulated during the August 28 hearing. The organization cited the risk of irreparable harm as a critical factor in their decision to establish voluntary commitments as they prepare for a trial set for December 2025.
NASCAR’s commitments, laid out in their court filing, are as follows:
- The rule ensuring that 23XI Racing and Front Row will qualify as Open teams for every race will remain unchanged.
- No new charters will be issued or leased for the 2025 season, nor will any transactions occur regarding inactive charters previously belonging to Stewart-Haas Racing.
- For the 2026 season, the issuing, selling, or leasing of more than four charters will not take place.
NASCAR aims for these measures to render the teams’ request for a preliminary injunction moot, asserting that the plaintiffs do not face irreparable harm.
However, 23XI Racing and Front Row maintain that without their charters, they could face closure after this season, highlighting that competing as Open teams is unsustainable. Both teams argue that the loss of charter status would jeopardize their contracts with drivers and sponsors.
In their response to NASCAR’s filing, the plaintiffs made it clear they do not believe the notice resolves their concerns, stating, “Plaintiffs do not agree that Defendants’ notice…moots Plaintiffs’ Motion for Preliminary Injunction.”
Judge Kenneth Bell is expected to issue a decision on the preliminary injunction next week, which will further shape the outcome of this ongoing litigation.
