Charters are NASCAR’s version of franchises. 36 teams operate with charters and each of them are guaranteed a starting spot in every points race while also earning a larger share of the race purse over Open (non-chartered) teams.
At the end of last season, 23XI Racing and Front Row Motorsports each owned two charters. Then, each team purchased an additional charter, bringing each team’s total to three charters.
Recent sale prices estimate charter values north of $40M.
23XI and FRM elected not to sign the most recent charter agreement. Instead, they opened an antitrust lawsuit against NASCAR as they were seeking a more favorable agreement. A line in the new agreement would have prevented the teams from opening a lawsuit so they elected not to sign.
NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
The teams initially filed a preliminary injunction with the courts. And they won, the teams were allowed to race with charter benefits while the lawsuit was ongoing.
NASCAR appealed the ruling and very recently, they won the appeal.
With the win, they were able to remove all charter benefits from 23XI and FRM. The teams are now racing as if they are Open entries while the antitrust lawsuit continues.
NASCAR wins court appeal to claim charters from 23XI / FRM
Now, things are progressing and it’s getting dark.
NASCAR has stated they already have an agreement to transfer one of the charters previously held by 23XI / FRM to another team for the 2026 season.
They noted that it’s one of the original charters held by 23Xi or FRM. It’s not one of the additional two charters purchased from Stewart-Haas Racing at the start of this season.
The teams and NASCAR are heading to a court hearing on Thursday. NASCAR is looking for the courts approval to transfer the charter. The teams are looking for the opposite, to have their charter status returned until the end of the trial.
If a sale is approved, this could be the end for both teams.
NASCAR has an agreement to transfer a charter amid lawsuit
“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, because that would put 23XI and Front Row out of business following the 2025 Cup Series season,” a filing on Monday from the teams read.
“This Court has already found that it is not economically viable to race as open teams on a long-term basis, and NASCAR did not challenge that finding on appeal.”
“Plaintiffs will also suffer irreparable harm if they do not have charter rights for the rest of this season, because it will cause their drivers and sponsors to seek to leave.”
23XI Racing has already stated that Tyler Reddick gave the team a breach of contract notice. A note in Reddick’s contract requires the team to provide a car with charter status for him to race.
“This Court has the authority to preserve the status quo and prevent NASCAR from selling the charters before the December 1 trial. Otherwise, Plaintiffs will face the imminent destruction of their businesses regardless of how the jury rules.”
“NASCAR’s Opposition is a brazen effort to deny reality. It is striking in its failure to even address most of the smoking-gun documents that admit NASCAR viewed competitive entry as a threat.”
Brad Keselowski says the NASCAR lawsuit is a threat to the sport
23XI Racing Driver Lineup:
– Bubba Wallace (No. 23)
– Tyler Reddick (No. 45)
– Riley Herbst (No. 35)
Front Row Motorsports Driver Lineup:
– Noah Gragson (No. 4)
– Todd Gilliland (No. 34)
– Zane Smith (No. 38)
