the NASCAR charter system us under fire after an antitrust lawsuit filed by 23XI Racing and Front Row Motorsports (FRM) intensifies. The 2025 season will be a dog fight as key developments see the landscape for these teams completely reshaped and the stage is set for a challenging year ahead.
The Denied Preliminary Injunction
23XI Racing and FRM and had filed for a preliminary injunction in October to allow them to run as a chartered team in 2025. The Charter system, which provides guaranteed spots in every race and revenue sharing, was crucial for allowing some teams to survive, the teams argued. In court filings, FRM’s Bob Jenkins pointed out:
“Because of our love for the sport and our determination to maintain the race team we have built, we are determined to race next year even if we have to do so on an ‘open’ basis, but at some point, the losses may become so severe that we simply cannot continue — causing irreparable harm to our business, our employees, and the communities and fans we are associated with.”
However, Judge Frank Whitney denied the injunction, stating that the plaintiffs did not demonstrate sufficient irreparable harm. He left the case to proceed under expedited review.
23XI Racing and Front Row Motorsports Allowed to Race as Open Teams
However, the teams confirmed that a restrictive clause preventing them from competing as open teams had been stripped – allowing 23XI Racing and Front Row Motorsports to continue to race while fighting their legal battle. The statement came from Jeffrey Kessler, the teams’ attorney:
“We are pleased to announce that NASCAR has removed the anticompetitive release requirements in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025.”
Kessler also reaffirmed their commitment to appeal:
“My clients will continue their appeal to the 4th Circuit to issue an injunction so they can run as chartered teams, therefore avoiding irreparable harm.”
Denny Hamlin Clarifies
Denny Hamlin clarified his stance on X when reports came out suggesting NASCAR and 23XI Racing and FRM had reached an agreement:
“For clarification sake. No agreement was reached. They just removed the provision”
Co-owner Hamlin was optimistic about the case’s future during media availability at Phoenix Raceway. Noting the judge’s ruling speeding up discovery and stressing that the situation is fluid, he welcomed flexibility. When he was asked if 23XI had any plans for the 2025 major 500s, Daytona 500 included, he answered:
“Obviously, judging on it without prejudice and giving us an opportunity to refile once the situation changes, because he knows that things will change over the next few months, obviously he understands the complexity of it and […] that this situation is fluid and we obviously could see some pretty bad harm coming up.” [1:50]
He continued:
“I think it’s all TBD. There’s certain things that we’re going to have to navigate, so I hope so”
Watch:
Broader Implications
The dispute is part of what’s become the tension between NASCAR’s governance model and team autonomy. The charter system was introduced in 2016 to ensure there is stability — guaranteeing race entries and revenue sharing — but critics say the system suppresses competitiveness. In defense of the system, NASCAR has said its purpose is to help keep the sport financially sound.
So as this case unfolds, its outcome could determine how NASCAR balances the business and competition lines, a precedent for which could shift the very workings of all teams on the grid.
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