23XI Racing and Front Row Motorsports opened an anti-trust lawsuit against NASCAR. Both teams elected not to sign the new charter agreement ahead of the lawsuit.
NASCAR lawsuit opened by 23XI Racing and Front Row Motorsports
NASCAR has issued new court filings in the lawsuit with the teams. The sanction states they do not have a stock car racing monopoly noting competition from the CARS Tour, which is an asphalt late model division.
NASCAR added in the filing, “In addition to the long list of exceptions, which include every major known racing organization and sanctioning body in North America, the Goodwill Provisions in the 2016 and 2025 Charters also allow Team Owners to seek NASCAR’s approval to race in other series.”
“NASCAR has never withheld approval from any Charter holder (including direct and indirect Team Owners, as defined by the 2016 and 2025 Charters) to race in any other stock car series or any other racing series.”
23XI Racing and Front Row Motorsports likely to lose NASCAR charters after ruling
23XI Racing and Front Row Motorsports recently made a request to the court that the teams return to charter status. A ruling on that request is pending.
Meanwhile, NASCAR is requesting that the courts allow them to sell the charters by October 31st. They are also requesting that money earned by the teams for running as a charter teams in the first part of the 2025 season to be returned.
NASCAR stated that the court cannot force them to do business with teams that they do not want to do business with.
The series says there is wide-ranging interest in the charters that were held by 23XI Racing and Front Row Motorsports. However, the trial on Dec 1 will take place just months ahead of the 2026 season.
If the trial takes 2-3 weeks, that leaves a little more than a month for the charters to be redistributed to NASCAR teams.
NASCAR is asking the court not to issue an injunction. They note that 23XI and FRM have no legal rights over their charters as they never agreed to terms and instead forfeited their charters.
NASCAR wins court appeal to claim charters from 23XI / FRM
— NASCAR also claimed they pay higher percentage of its operating income to charter teams than Formula One pays to its teams.
— They also noted 2016 charter payments increased annual payments to teams by 28% on average over the pre-charter period.
— In the latest charter agreement, NASCAR says they increased those payments by another 62% for the 2025-2031 charter period.
All full-time teams to file financial info amid NASCAR lawsuit
Denny Hamlin is a co-owner of 23XI Racing. And with the new filing, Hamlin says NASCAR is set to release the 2026 schedule as a distraction.
Hamlin stated via X, “This is where a schedule would come out to divert your attention.”
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)
