CHARLOTTE, N.C. (AP) — A U.S. District Court has granted a preliminary injunction that allows 23XI Racing and Front Row Motorsports to compete as chartered teams in the 2025 NASCAR season. The ruling was made on Wednesday and is a notable outcome in their ongoing legal battle against NASCAR over antitrust allegations.
Judge Kenneth D. Bell emphasized the importance of having all teams compete with their top drivers, noting that “NASCAR fans (and members of the public who may become fans) have an interest in watching all the teams compete with their best drivers and most competitive teams.”
The teams had previously rejected NASCAR’s revenue-sharing proposals just two days before the playoffs began and argued that the current structure favors a monopoly among existing NASCAR owners. They labeled these owners as “monopolistic bullies” in their antitrust lawsuit, which is still in progress. In a previous court hearing in November, they were denied recognition as “chartered” teams.
A charter effectively serves as a franchise, ensuring teams can access prize money, a regular spot in races, and various protections. Fees for obtaining a charter have significant implications for team operations and financial health.
The court’s decision now allows both 23XI and Front Row to sign charter agreements while continuing their lawsuit. They have also received approval to purchase additional charters from Stewart Haas Racing (SHR), which will no longer operate its four-team shop after the conclusion of the 2024 season. NASCAR must approve these transfers.
Denny Hamlin, co-owner of 23XI and a three-time Daytona 500 champion, expressed his excitement on social media, posting, “YESSSSSSS!!!!!” This victory is crucial for 23XI, as Tyler Reddick, who ended the 2024 Cup standings in fourth place, had a clause in his contract that would allow him to become a free agent if the team failed to secure a charter. Similarly, teammate Bubba Wallace had expressed urgency in knowing the team’s direction for the upcoming season.
Michael Jordan, a co-owner of 23XI and NBA Hall of Famer, stated that he filed the legal action not only for his team but for all competitors in the top levels of motorsports in the United States. NASCAR, on the other hand, contends that 23XI and Front Row’s discontent stems from their dissatisfaction with the terms of the charter agreement and that the lawsuit should be dismissed.
Both teams aspire to expand their operations from two full-time cars to three and have secured agreements with SHR for one charter each. Meanwhile, the implications of not having a charter would have forced them to compete as “open” teams, which lack many of the protections and financial benefits associated with charter status. They argue that such a status is necessary to meet certain contractual obligations with sponsors and drivers, and competing without charters could result in substantial financial losses.
Earlier this month, the case was transferred to a different judge than the one who previously denied their request for a temporary injunction to be recognized as chartered teams for the forthcoming racing season. The ruling concluded that “the public interest strongly favors entry of a limited preliminary injunction in favor of the Plaintiffs during the 2025 NASCAR race season.” This is intended to enhance the racing experience for fans while allowing the legal challenges against NASCAR to unfold.
Front Row Motorsports is owned by businessman Bob Jenkins, who previously stated that competing without charters could result in a combined loss of $45 million in revenue for both teams. Despite these risks, he believes in the strength of their case against NASCAR.
Since the implementation of the charter agreement in 2016, NASCAR has operated with 36 chartered teams and four additional open spots. Judge Bell noted that having various sports available in the U.S. doesn’t negate NASCAR’s significant control over a major sport, similar to other sports’ structures.
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