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Report: Why 23XI Racing, Front Row Motorsports are Suing NASCAR
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- Report: Why 23XI Racing, Front Row Motorsports are Suing NASCAR
Christopher Hanewinckel-Imagn Images Christopher Hanewinckel-Imagn Images
The ongoing lawsuit from 23XI Racing and Front Row Motorsports won't go to trial until Dec. 1, but the two teams and NASCAR have been battling it out in court for months. In a recent filing, the league wrote why it believes 23XI and FRM filed a federal antitrust lawsuit against it.
In NASCAR's latest court filing , a response to the most recent preliminary injunction filed by 23XI and FRM, the league argued that 23XI Racing co-owner Michael Jordan is suing so he can obtain permanent charters in the Cup Series that no other teams would have.
"Mr. Jordan has said he wants to use the litigation to grant him a permanent Charter that no other team has."
Related: NASCAR Lined Up Buyers to Sell 23XI Racing, Front Row Motorsports Charters
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As reported by the AP in September 2024, NASCAR announced its new charter agreement with 13 organizations, with 23XI Racing and Front Row Motorsports as the only teams that did not sign the charter. At the time, teams told the AP that they felt "pressured" to sign the charter agreement, with NASCAR reportedly threatening to pull and sell the charters of teams that did not sign.
The refusal of 23XI and FRM to sign would have resulted in both teams running non-chartered when the 2025 NASCAR schedule began in February. Then, a U.S. District Court granted them an injunction in December 2024, allowing them to race as chartered teams. However, that ruling was later overturned, and after multiple appeals, both teams lost their chartered status in July and had to run as open teams beginning at Dover Motor Speedway and they have maintained that status ever since.
Both teams recently filed to be granted a new preliminary injunction at a hearing scheduled for Aug. 28, stating that NASCAR intends to sell the six charters before the 2025 season ends. Doing so would effectively leave 23XI and FRM with no charters for 2026 if they were to win in court. NASCAR has since confirmed it wants to sell the charters and has interested buyers aiming to make a deal by October.
In an interview with YouTuber Eric Estepp this week, NASCAR president Steve O'Donnell said that they are "not sure" what 23XI and FRM are asking for and what the teams have said in court doesn't have "anything to do" with why the league is being sued.
"I think it's important that everyone knows, the team sued us, right? We didn't ask for this. We're still not sure what they're even asking for, candidly, in terms of an outcome. What we've seen really doesn't have anything to do with why the lawsuit was brought."
Related: Tyler Reddick Landing Spots if He Leaves 23XI Racing over Lost Charters
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NASCAR selling the charters could also result in driver Tyler Reddick leaving 23XI this offseason, as his contract includes a clause allowing him to leave if the team is unchartered. In addition, losing those charters could lead to both teams losing the backing of sponsors.
Throughout the legal battle, judges have repeatedly encouraged both sides to settle the matter privately. However, with 23XI, FRM, and NASCAR all seemingly dug in on their stances, the lawsuit will likely be heard in court on Dec. 1.
Also Read: NASCAR Considering Major Rule Change that Cup Drivers Want
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