NASCAR lawsuit update: Judge Kenneth Bell to decide on SHR charter transfer stay, could force 23XI and Front Row to sell

23XI Racing and Front Row Motorsports (FRM), recently got a big win in their legal fight with NASCAR. However, they could be forced to sell to NASCAR or other teams.

The dispute began when NASCAR introduced a new charter agreement in September, which 23XI and FRM refused to sign. The teams later sued NASCAR and claimed the rules limited competition. On Wednesday, Judge Kenneth Bell granted the teams their preliminary injunction and allowed them to race as chartered entities in 2025.

The court ordered NASCAR to approve the charter transfers but the governing body, that has planned to appeal the decision, asked for delays. Judge Bell will now decide on Monday whether to pause the transfer of Stewart-Haas Racing (SHR) charters to 23XI and FRM.

"Judge Bell says he will rule on Monday whether or not to grant the stay on the SHR charter transfer; gives 23XI and Front Row to 10a on Monday to respond to NASCAR. Judge says court can unwind transaction if completed and force 23XI, Front Row to sell to NASCAR or other teams," wrote Motorsports writer Matt Weaver.

NASCAR asked the court to delay the transfers until its appeal is heard.

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"Will suffer irreparable harm without a stay" - NASCAR prior to appeal challenging charter sale to 23XI and Front Row Motorsports

The recent court ruling allowed Denny Hamlin and Michael Jordan's 23XI and Bob Jenkin's Front Row Motorsports to buy a third charter from Stewart-Haas Racing. Their first request was denied by the court. However, after a second injunction to a new judge, the court approved.

On Thursday, NASCAR argued for an immediately delay on the charter transfer and said that it would suffer serious financial and operational issues. It also suggested letting 23XI and FRM compete in races without giving them full charter benefits.

NASCAR’s appeal will go to the Fourth Distric Court of Appeals in Virginia.

"NASCAR will suffer irreparable harm without a stay. The Court’s decision forcing NASCAR to approve Plaintiffs’ SHR Charter transfers is not a ‘limited’ injunction for the 2025 Cup Series season," NASCAR said in court documents.

"Instead, it will effectively force NASCAR into a seven-to-fourteen year contractual relationship with Plaintiffs with respect to these Charters-even though Plaintiffs have not met multiple required conditions for these Charters’ assignment. Moreover, it would be difficult, perhaps even impossible, to unwind these court-ordered transfers once they have occurred," it added.

NASCAR might have to undo the deals if the delay is not granted and the transfers happen.