“The 23XI and Front Row Motorsports teams are fully committed to competing in next year’s Cup Series.” This was a joint statement both the teams released while filing for an injunction to retain their chartered team status. Now remember, both 23XI Racing and FRM have refused to sign the new charter agreement and the current deals expire by the end of 2024.

It feels like the teams want to have it both ways. Firstly, they’ve sued NASCAR on anti-trust grounds, and now they are also seeking an injunction to keep them afloat without taking a financial hit. However, NASCAR has now shared its response against the preliminary injunction as it looks to plan for the next year with its 32 chartered teams.

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 the two teams agreed to new terms. Now, 23XI Racing and FRM knew that 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, and therefore they are seeking a preliminary injunction. This would allow them to continue racing next year as the legal tussle against NASCAR continues in court. However, NASCAR isn’t going to budge on this idea and has put out a stern warning stating their plans for 2025.

“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.

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

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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 team’s hands into signing the deal. Moreover, NASCAR also held private one-on-one meetings with the teams to convince them to break ranks. That trick did work, and now their stance except 23XI Racing and FRM.

Although they found themselves in a legal tussle with the two teams, they wanted to make sure they stayed true to their word for the 32 teams that agreed to sign the new charter deal. “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.” The statement read further.

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.” This isn’t a verdict or ruling that NASCAR can impose or exercise against the two teams. 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.