It seems like 23XI Racing and Front Row Motorsports may have won the battle, but can they win the war? The plaintiffs, who have filed a court case against NASCAR have been handed a small, but significant win in the ongoing lawsuit. Amidst the drama and uncertainty, the so-called ‘rebellion’ will be keeping their charters for the 2025 campaign, after having their revised preliminary injunction approved in a dramatic twist of fate.

Despite Michael Jordan, Denny Hamlin, and Bob Jenkins breathing a big sigh of relief, the fight is far from over. The sanctioning body could retaliate by not approving the Stewart-Haas Racing charters sold to both teams, should the plaintiffs lose the ongoing legal case.

NASCAR could still inflict a big blow to 23XI and Front Row Motorsports

It’s been a topsy-turvy journey for 23XI Racing and Front Row Motorsports in the ongoing lawsuit. Both teams lost in their motion for a preliminary injunction, after Judge Frank D. Whitney was unconvinced that it would cause “irreparable harm” if they were forced to run as open teams. Despite talks of appealing the verdict, Jeffrey Kessler’s clients opted to re-file the motion instead, only this time the decision was in Judge Kenneth D. Bell’s hands. As per the latest ruling, both teams will keep their charters until the anti-trust lawsuit is resolved, while NASCAR is also forced to approve the purchase of their third charters.

However, the battle is far from won. When asked by a fan if the third charter sale is only valid for next season or forever, FOX Sports journalist Bob Pockrass wrote, “Ruling says NASCAR is ‘preliminarily enjoined from refusing to approve Plaintiffs’ purchases of two Stewart-Haas Racing, LLC charters, which Plaintiffs will be entitled to use to race in all 2025 NASCAR Cup races.’ … if teams lose case, then charter transfer likely revisited.” This means that while there might be a temporary respite for 23XI and Front Row Motorsports, NASCAR is still holding out hope.

As things stand, 23XI Racing has already announced a third car for 2025, which will be driven by Riley Herbst, while Front Row Motorsports has been linked with Zane Smith for its third seat. However, it remains to be seen if both teams will be able to retain their new charters, for which they have paid a combined total of an estimated $50 million, as it will all depend on how successful the plaintiffs and Jeffrey Kessler are in the courtroom. Bob Jenkins’ FRM had filed an affidavit last week which alleged that NASCAR’s condition for approving the sale of Stewart-Haas Racing’s charters depended on the lawsuit being dropped.

However, that’s a stark contrast to what Stewart-Haas Racing president Joe Custer said, as was told by NASCAR that the charter sale would be approved, but in the unlikely scenario it doesn’t, the team wouldn’t be able to field two entries as per the charter proposal signed in September. Jeffrey Kessler’s decision to re-file the preliminary injunction was a stroke of genius, as the plaintiffs managed to prove the harm losing their charters would cause, not just in the long run but for also their immediate future.

Jeffrey Kessler welcomes the court’s verdict

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Even though the battle is far from over, 23XI and Front Row Motorsports have plenty of reasons to celebrate. By being granted charter status for 2025, both teams will get significantly higher revenue next season than they would have if they were forced to compete in the ‘open’ category. Moreover, they will also have an automatic sport in each of NASCAR’s 36 Cup points races and don’t run the risk of potentially losing their drivers, whose contacts required them to be in a car with a charter.

Reflecting on the preliminary injunction being approved, the plaintiffs’ attorney Jeffrey Kessler said, “We welcome today’s decision by Judge Bell granting a preliminary injunction in our favor. The court’s ruling allows 23XI and Front Row Motorsports to race existing cars as chartered teams in next year’s Cup Series. The decision also requires NASCAR to approve both teams’ purchases of a third charter from Stewart-Haas Racing and allow these cars to also race as chartered teams in the 2025 season.”

Tyler Reddick, who made it to the Championship 4 during the 2024 season, would have had the opportunity to leave as a ‘free agent’ if the verdict didn’t go in 23XI Racing’s favor. While there is no guarantee he would have opted to leave, other teams would be able to contact the 28-year-old for his services. While NASCAR has the opportunity to appeal, Kessler remains bullish about their chances and he went on to say, “We are confident in the strength of our case and will continue to fight so that racing can thrive and become a more competitive and fair sport in ways that benefit teams, drivers, sponsors and, most importantly, our fans.” 23XI Racing and FRM are giving it their all to win this case and as the season inches closer their stance seems to get stronger. While the threat of NASCAR eventually winning the case and reversing all of their hard work still looms large, in the short term, things are looking on the up.