The future of 23XI and Front Row Motorsports remains in the air following the latest developments in their anti-trust lawsuit against NASCAR. The two teams filed a motion for a preliminary injunction, that would allow them to keep their charters for the 2025 season while the lawsuit is ongoing. But the Jim France-led organization is flexing its muscle and its response to the filing could be detrimental to these two teams’ future.

Michael Jordan and Denny Hamlin co-owned 23XI and Bob Jenkins’s FRM were the only two teams who stood their ground and refused to sign the new charter agreement. They filed a lawsuit on October 2, challenging NASCAR’s policies which allow them to keep the lion’s share of the revenue while terming them as “monopolistic bullies.” Well, the alleged bullies have hit back in emphatic fashion.

Is NASCAR taking over the 23XI and FRM charters?

On September 6, the teams received documentation stating that they needed to sign the new charter deal by midnight. A failure to do so would result in the teams losing their charters. This strong-arm technique did work in their favor, as everyone, but 23XI Racing and FRM agreed to the new deal. Both teams knew they would lose their control over their charters by the end of this year.

Along with the millions of dollars, the teams would jeopardize their drivers and sponsors, so they are seeking a preliminary injunction. This would allow them to continue racing next year as chartered teams as the legal tussle against NASCAR continues in court. However, NASCAR isn’t entertaining this idea and has put out a stern warning stating its plans for 2025.

NASCAR filed a 22-page response to the motion on October 17, asking for the request to be denied, claiming it is a one-sided, non-reciprocal request. “Plaintiffs have filed a meritless suit against NASCAR alleging baseless antitrust claims in order to obtain commercial agreements they previously rejected, and to attempt to extort more favorable contract terms,” it says at the start of its response to the plaintiffs’ motion.

“The deadline for plaintiffs to sign the 2025 Charter Agreement expired weeks ago, and NASCAR has taken steps, consistent with its contractual obligations to other charter teams, to plan for a season with only 32 charters. Plaintiffs do not need these charter agreements to race, and indeed have stated publicly that they will be racing in NASCAR regardless.” This was NASCAR’s response to the team’s demand for expedited production of documents and files.

With NASCAR planning to have a 32 charter season, it means 23XI and FRM will not be racing as charter teams in 2025, with both teams holding two charters each, with plans for expansion next season. Hence, they will be left with the option to race as “open teams,” which would lead to them missing out financial rewards that come with being a charter team.

This suggests they are ok with 23XI and FRM continuing their run in the Cup Series but not as charter teams. With NASCAR being clear about the fact that the time to sign the agreement has passed, it puts Michael Jordan and Co. in a tricky spot.

Earlier on October 9, 23XI and FRM issued a statement: “The 23XI and Front Row Motorsports teams are fully committed to competing in next year’s Cup Series. Today’s procedural filing is the next step in advancing our case against NASCAR and their monopolistic practices while protecting our drivers, racing teams and sponsors by establishing our legal right to operate in 2025.”

They had also filed a motion seeking expedited discovery, requesting “immediate access to documents and files from NASCAR executives.”

This might look like a retaliation by NASCAR for taking over the team’s charters. However, there’s more to this move than meets the eye. Remember, NASCAR already has 32 teams to take care of for the next season, and special treatment towards the two who defied them would make them look weak. So essentially, they are holding their stance and preparing for the next year as they should.

NASCAR has been successful in dividing the teams

Trending

Christopher Bell Becomes the Laughing Stock With New Teammate Rubbing Salt on Old Wounds Out of the Blue

“It Drives Like a Forklift” – Shane van Gisbergen Controversially Splits the Difference Between NASCAR’s Proud Next Gen and Xfinity Cars

Sprint Car World Loses Toyota Driver Till Next Season as Grueling Injury Forces Pause on 18-Year-Old Sensation’s Career

JRM Prodigy & Kelley Earnhardt’s Son Earn Major Backing as Dale Jr.’s Loyal Partners Announce 2025 Return

Has JTG Daugherty Racing Changed Owners After Brad Keselowski Lured $43 Billion Partner?

Racing Team Alliance looked to be in unison in getting their demands fulfilled as a collective group. But the mere imagination of losing the charters, a guaranteed spot, and increased payouts forced the teams’ hands into signing the deal.

NASCAR in its statement further added, “NASCAR carries contractual obligations to the 13 teams that accepted its offers of the 2025 charters, and consistent with the teams of the 2025 charter, NASCAR is working on relocating funds that plaintiffs would have received to increase prize money and other special awards for the 2025 season for the benefits of the teams that timely executed 2025 charters.”

Interestingly, the statement also mentioned the open teams, and they can also gain from these increased payouts. “As well as open teams who can compete to win increased prize money and other special awards.” The lawsuit from 23XI and FRM has gotten some support from drivers like William Byron and Kyle Larson, but overall the teams have accepted their fate. The new charter agreement does come with increased revenue and offers a seven-year charter guarantee with a seven-year option, which many teams finally had to accept.

They had earlier demanded permanent charters to secure their long-term future and wanted a share of the profits NASCAR makes from the use of their name and likeliness, however, they didn’t get what they wanted. Rick Hendrick mentioned he was “just tired” and “not everybody was happy,” but in the end, the teams had no option other than to sign the new agreement.

NASCAR’s harsh stance against 23XI and FRM could also be about setting an example, in case there are any seeds of rebellion sowing in the minds of other owners down the line. Their statement, however, isn’t the final verdict. A final call regarding the preliminary injunction would be made by the court. The hearing for the preliminary injunction is set for November 4 in a federal court in Charlotte.