23XI Racing and Front Row Motorsports Seek Charter Reinstatement Amidst Antitrust Legal Battle

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In a contentious federal court hearing on Thursday, 23XI Racing and Front Row Motorsports sought a preliminary injunction to reinstate their NASCAR charters, which were vacated in June. Since that time, both teams have competed as Open entries in the Cup Series. The teams also aim to prohibit NASCAR from selling or transferring these charters pending the resolution of an ongoing antitrust lawsuit, with a trial set for December.

NASCAR maintains that 23XI Racing and Front Row have no legitimate claim to the charters, asserting that the teams failed to sign the 2025 charter agreement. They notified the court of intentions to sell one of the charters to an unnamed interested party once the injunction is resolved.

During the hearing, Jeffrey Kessler, lead counsel for 23XI Racing, argued that selling the charters could jeopardize their operations, stating, “This is the time of year when teams are securing drivers and sponsors.” He emphasized the urgency of maintaining the current charter status, warning that remaining as Open competitors long-term is not sustainable. Specific concerns over driver retention were raised, mentioning Tyler Reddick by name.

NASCAR’s lead counsel, Chris Yates, countered the claims, questioning why 23XI Racing and Front Row would desire permanent charters if the current system were as detrimental as they argue. He pointed out that numerous teams and potential entrants are vying for charters, indicating market demand.

Judge Kenneth Bell expressed confusion about NASCAR’s reluctance to release other available charters, suggesting a possible expansion of the current charter system from 36 to 40 holders.

Tensions escalated during the presentation of internal communications from both sides regarding the charter negotiations. Messages from NASCAR leadership, including President Steve O’Donnell, contained controversial language about race teams, while 23XI’s communications reflected grievances about the negotiation process and a desire for more equitable treatment.

Michael Jordan, co-owner of 23XI Racing, articulated the team’s broader fight for change within the sport, stating post-hearing, “The point is that the sport itself needs to continually change for the fans as well as for the teams… I look forward to going down with fire.”

Judge Bell indicated that his ruling on the injunction would occur next week, a critical decision that could reshape NASCAR’s charter system and its implications for the teams involved.

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