Judge Bell drops a bombshell decision on NASCAR as FRM faces major success but 23XI could be in a tricky situation

NASCAR has lost a motion over the Stewart-Haas Racing charter transfer. The court denied the league's motion for a partial stay on the preliminary injunction pending appeal, forcing it to transfer the charter only to Front Row Motorsports.

The partial stay was filed to delay the transfer of charters to FRM and 23XI Racing. However, as it stands, Judge Kenneth Bell only approved FRM's request, leaving 23XI in a potentially tricky situation, though the Toyota-affiliated team could yet get the same relief.

In a report by NASCAR insider Kenny Crandall on X (formerly Twiter), 23XI Racing didn't include the charter transaction in the original filing.

"Judge Bell has denied NASCAR's motion for a partial stay on the preliminary injunction pending appeal. However, NASCAR is only forced to approve the charter transfer for Front Row Motorsports. 23XI Racing will have to ask the court for the same relief since their charter transaction was not included in the original filing," Crandall wrote.

NASCAR filed the partial stay after the court approved the plaintiffs' preliminary injunction and charter transfer request on December 18, which allowed them to compete as temporary charter teams.

Since the court denied the partial stay, Front Row Motorsports should get the charter the team acquired from SHR. This means the plan to expand to three cars is a go, though the third driver hasn't yet been announced by the team.

So far, the Ford-affiliated team has retained Todd Gilliland and signed Noah Gragson from the now-discontinued team.

23XI Racing, meanwhile, has already announced Riley Herbst as the driver for its new third car. Without a charter transfer, Herbst would compete as an open car, meaning he wouldn't get guaranteed race entries and payouts.

NASCAR will face the teams on January 8 next year regarding the motion to dismiss the lawsuit. If the parties don't resolve the issue, a trial could be held in December after the 2025 season.

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Denny Hamlin shares subtle reaction to latest court ruling against NASCAR

With the denial of a partial stay, Denny Hamlin seems to have reacted to the ruling. He took to X to post a GIF of the fictional character Al Bundy wearing a Santa Claus costume while wishing everyone a Merry Christmas.

Hamlin co-owns 23XI Racing along with NBA Hall of Famer Michael Jordan. He is also the driver of the No. 11 Toyota Camry for Joe Gibbs Racing.

Per X, Hamlin posted this GIF.

"Merry Christmas Fellas..." the post reads.

23XI Racing and Front Row Motorsports sued NASCAR earlier this year for alleged monopolistic practices.

However, the latest developments show the odds are in the two teams' favor. They will compete as temporary chartered teams next year despite not signing the multi-year charter extension deal last September.

For 2025, 23XI will retain its driver lineup including Tyler Reddick and Bubba Wallace. Reddick will get back in the No. 45 Toyota following a strong 2024 season where he made the Championship 4.

Tyler Reddick drives the No. 45 car - Source: Imagn

The upcoming season will commence at the Daytona International Speedway for the prestigious Daytona 500 race on February 16.