In a significant legal development, 23XI Racing and Front Row Motorsports have secured a preliminary injunction permitting them to compete as chartered teams in the 2025 NASCAR Cup Series season. This decision, issued in December 2024, allows both teams to maintain their charter status while their antitrust lawsuit against NASCAR proceeds.
The dispute centers on NASCAR’s charter system, which grants teams guaranteed entries and revenue-sharing benefits. 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, along with Front Row Motorsports, declined to sign the updated 2025 charter agreement, alleging that NASCAR’s practices violate antitrust laws by imposing restrictive conditions and limiting fair competition.
U.S. District Judge Kenneth Bell granted the preliminary injunction, citing concerns that the uncertainty surrounding the 2025 season was adversely affecting the teams’ operations, including driver contracts and sponsorships. This ruling ensures that both teams can participate fully in the upcoming season while the legal proceedings continue.
In response, NASCAR has filed a counterclaim against 23XI Racing and Front Row Motorsports, accusing them of engaging in anticompetitive behavior and violating antitrust laws. NASCAR alleges that the teams interfered with broadcast negotiations and organized boycotts, characterizing their actions as forming an “illegal cartel.”
The legal battle underscores broader tensions within NASCAR regarding revenue sharing and team sustainability. The Race Team Alliance, representing multiple NASCAR teams, has previously expressed concerns about the current economic model, advocating for more equitable revenue distribution and permanent charters to ensure long-term stability.
As the lawsuit progresses, the outcome could have significant implications for NASCAR’s governance and the structure of its charter system. The case is scheduled to go to trial in December 2025 unless a settlement is reached beforehand.
For a more in-depth analysis of the legal proceedings and their potential impact on NASCAR, you can watch the following video:
