NASCAR offers charters to the teams – a form of franchise – that is tied to earning money at the races. Instead of signing a charter agreement for next season, Front Row Motorsports and 23XI Racing not only refused to sign the agreement but also filed an antitrust suit against the sanctioning body of NASCAR.
As the teams begin preparation for the 2025 season, Front Row and 23XI were unsure of their status for being allowed to run next season.
On November 15, NASCAR announced that the two teams, which currently operates four cars and each has an option to purchase one of the Stewart-Haas Racing charters that is available now that the team has shut down, will be allowed to compete next season but as an open car – not guaranteed a starting spot unless there are less than 40 cars. If more than 40 drivers come to the track (which frequently happens at Daytona), the drivers will have to make their way into the field on time. Non charter teams also receive a smaller “cut” of the revenue money.
The legal issues have NOT been solved, the decision by NASCAR merely removes the “anticompetitive” claims while the legal issues are being addressed. The “anticompetitive” wording prohibited teams from suing NASCAR – the sanctioning body.
When NASCAR presented the new charter deal set to begin in 2025, NASCAR told the owners to “take it or leave it”; 23XI and Front Row owners refused. The other owners did sign the charters but have since stated that they felt bullied and did so under duress.
23XI and Front Row joined forces and filed an antitrust suit claiming NASCAR was “monopolistic bullies”.
23XI Racing is owned by NBA All Star Michael Jordan and Joe Gibbs Racing driver Denny Hamlin. Bob Jenkins owns Front Row Motorsports.
As the legal proceedings continue, a federal court judge has rule that 23XI and FRM could not race as a “chartered” team as the proceedings move forward.
The decision is under appeal.
Prior to Saturday’s decision by NASCAR; 23XI co-owner Denny Hamlin noted that they were not sure whether the 23 and 45 cars would be able to run when NASCAR began the 2025 season at Daytona in February.
Attorneys for 23XI and FRM spoke on the issue saying, “my clients will continue their appeal to the fourth Circuit to issue an injunction so they can run as chartered teams therefore avoiding irreparable harm. Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”