An ongoing legal battle between NASCAR and two of its racing teams, 23XI Racing and Front Row Motorsports, has resulted in a significant victory for the teams. A federal judge issued a preliminary injunction Wednesday, compelling NASCAR to grant the teams chartered status for the 2025 NASCAR Cup Series season. The ruling also clears the way for the transfer of charters from the dissolving Stewart-Haas Racing (SHR) organization.
The lawsuit, which centered around NASCAR’s charter system and its perceived anti-competitive practices, saw 23XI and Front Row argue for the right to operate under the same charter agreements as other established teams. Charters guarantee entry into every race and provide a larger share of revenue, making them crucial for team stability and profitability. Without charters, teams must qualify for each race based on speed, a much more precarious position.
The judge’s decision grants a limited preliminary injunction, specifically for the 2025 season. This means that NASCAR must allow both 23XI and Front Row to field two cars each in all Cup Series races under the standard 2025 Charter Agreement terms. There is one crucial exception: the “release” language in Section 10.3 of the 2025 Charter Agreement. This clause, which typically releases NASCAR from future legal claims, will not apply to 23XI and Front Row in this particular case. This caveat ensures that the teams do not forfeit their right to pursue further legal action against NASCAR beyond the 2025 season.
Perhaps even more impactful, the injunction prevents NASCAR from blocking the teams’ acquisition of two charters from SHR. With SHR downsizing its operations, its charters became a point of contention. The ruling now allows 23XI and Front Row to purchase and utilize these charters for the 2025 season, operating under the same conditions as other chartered teams, with the same exception regarding the release language.
The legal document outlining the ruling explicitly states:
The Plaintiffs’ (23XI and Front Row) Motion for a Preliminary Injunction is granted in part.
A limited preliminary injunction is entered for the duration of the 2025 NASCAR Cup season. NASCAR must allow the Plaintiffs to enter two cars each in all Cup races under the 2025 Charter Agreement terms, excluding the release language in Section 10.3. NASCAR is also enjoined from preventing the Plaintiffs’ purchases of two SHR charters, allowing them to race in all 2025 Cup races on the same terms, again with the exception of the release language.
The Court will set a Case Management schedule to ensure a trial on the Plaintiffs’ claims is concluded before the start of the 2026 NASCAR season, unless the parties reach a voluntary resolution.
This last point is critical. The preliminary injunction is a temporary measure. The court has established a timeline for a full trial to address the underlying issues of the lawsuit. This means that while 23XI and Front Row have secured their spot on the grid for 2025, the larger debate about NASCAR’s charter system and team rights remains unresolved.
NASCAR has the option to appeal the ruling, which could further prolong the legal process. However, for the immediate future, the injunction provides a significant victory for 23XI and Front Row, guaranteeing their participation in the 2025 season under chartered status and solidifying their place within the NASCAR landscape. 1 The ruling also adds another layer of complexity to the already evolving NASCAR landscape, raising questions about the future of the charter system and the balance of power between the sanctioning body and its teams. The upcoming trial will be a crucial event that could reshape the business model of NASCAR racing for years to come.
Greg is the author of "The Nuts and Bolts of NASCAR: The Definitive Viewers' Guide to Big-Time Stock Car Auto Racing" and has been published in major publications across the country including the Los Angeles Times, the Cleveland Plain Dealer and the Atlanta Journal-Constitution. He was also a contributor to Chicken Soup for the NASCAR Soul, published in 2010, and the Christmas edition in 2016. He wrote as the NASCAR, Formula 1, Auto Reviews and National Veterans Affairs Examiner for Examiner.com and has appeared on Fox News. He holds a BS degree in communications, a Masters degree in psychology and is currently a PhD candidate majoring in psychology. He is currently the weekend Motorsports Editor for Autoweek.
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