“Abruptly reversed course and rejected the SHR transfer”: 23XI Racing and FRM give a stern response to NASCAR’s lawsuit approach

New statements regarding the antitrust lawsuit have been released. In the latest update, 23XI Racing and Front Row Motorsports have claimed NASCAR suddenly changed its mind and rejected the charter transfer from Stewart-Haas Racing.

According to NASCAR insider Bob Pockrass, FRM have stated that the league approved the charter transfer from SHR in September. However, NASCAR allegedly later told the team to drop the antitrust lawsuit before they could proceed with the charter transfer.

In turn, the teams said in their filing on Thursday that they were surprised the league overturned its decision, allegedly a response to the preliminary injunction request.

"23XI/FRM filing today says nothing filed Thursday breaks procedure as they had no reason to suspect NASCAR would 'abruptly reverse course and reject the SHR transfer' of charters. They say it is intimately related to injunction request & issue was part of NASCAR earlier response," Pockrass wrote on X (formerly Twitter).

NASCAR responded with a statement claiming FRM intended to sign the charter last September 12 but asked for more time. The Mooresville-based outfit then allegedly "reversed course" and filed a lawsuit saying the charter was anticompetitive. The team also allegedly refused to accept the terms under a charter deal.

"Front Row represented to NASCAR on September 12, 2024 that they intended to sign the charter, but needed more time. Front Row then reversed course, filed this lawsuit alleging that the Charter is anticompetitive, and also refuses to be bound by multiple provisions of the signed SHR Charter," Pockrass wrote.

For the uninitiated, Stewart-Haas Racing exited the sport at the end of the 2024 season. The rebranded team, Haas Factory Racing, downsized its Cup Series charters from four to one, allowing other teams to purchase charters.

Front Row Motorsports and 23XI Racing were the frontrunners for the charters but were put on hold amid the ongoing lawsuit battle.

Trackhouse Racing purchased one of the charters, allowing the team to expand to three cars with the addition of Shane van Gisbergen in the No. 88 Chevrolet Camaro.

Bubba Wallace drives the No. 23 23XI Racing car - Source: Imagn

The status of the charters for the 2025 season has yet to be determined. For now, the teams would run as open teams, meaning they don't have guaranteed entries to the 36 races next year.

23XI and FRM continue to fight for a preliminary injunction, which would allow them to temporarily compete as "chartered" teams while the lawsuit is ongoing.

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Riley Herbst joins 23XI Racing amid ongoing lawsuit battle against NASCAR

23XI Racing is set to compete with three cars next year, adding Riley Herbst to the roster amid the ongoing antitrust lawsuit. Herbst will drive the No. 35 Toyota Camry with sponsorship from Monster Energy.

In a statement, the 25-year-old driver said:

"It‘s an honor to join 23XI and Toyota for the opportunity to race in the Cup Series each week [...] Racing full-time in the Cup Series has been my goal since I started in NASCAR and I‘m excited to start my Cup career with such an accomplished and driven team."

Riley Herbst will be coming from a season in the Xfinity Series with Stewart-Haas Racing. Driving the No. 98 Ford Mustang, the Las Vegas native scored two wins, seven top-5s, and 15 top-10s.

However, Herbst's upcoming stint as an open team could be challenging. Without a charter, the teams could lose sponsors for potentially missing races. They would also take a toll financially considering open teams miss out on huge payouts.

Front Row Motorsports, meanwhile, has yet to announce the driver for the planned third car expansion for next year.