“Nothing more than dissatisfaction”: NASCAR respond to 23XI Racing and FRM amid ongoing legal battle over charters

23XI Racing and Front Row Motorsports have been in a constant legal battle with NASCAR on account of the heavily disputed charter agreement starting in 2025. Recently, a NASCAR insider shared an update from their ongoing legal battle which suggested that neither 23XI Racing nor Front Row Motorsports would be able to acquire a third charter from Stewart Haas Racing.

Both 23XI and FRM refused to sign the charter deal as they believed it wasn't a fair ask from the organization, rather, they joined hands and filed an antitrust lawsuit against NASCAR. However, despite their legal pursuit of NASCAR, 23XI and FRM wanted to expand their operation in the sport by introducing a third entry to their Cup Series lineups.

While it was fairly believed that their legal battle with NASCAR would act as an obstruction to their aspirations of expansion, a recent update by Fox Sports' Bob Pockrass reported that NASCAR won't consider agreeing to the charter transfer of SHR's assets to 23XI and FRM. Sharing images of the latest statement by NASCAR in court, he wrote:

"NASCAR filing today indicates it won't consider charter transfer of SHR charters to 23XI/FRM as they "purchased these Charters fully aware that they contained a release provision, which needed to be accepted for any requested transfer to be considered."

Moreover, Pockrass further shared a portion of the statement by NASCAR which read:

"Plaintiffs concede the Charters are “worth millions of dollars" and NASCAR increased the revenues available to teams. ... If NASCAR truly had market power, it would be decreasing its demand for Plaintiffs’ services and lowering the amount by which it compensates them."

A charter in NASCAR is a system that ensures a revenue-sharing arrangement between NASCAR and teams holding a charter, guaranteeing their entry into every race of the season. This system creates financial stability for teams and provides a structured competitive framework.

However, some aspects of the charter agreement, especially the clause stating that charter ownership is not permanent and includes a release provision, led to 23XI Racing and Front Row Motorsports' refusal to sign the new agreement and filing a lawsuit against the sanctioning body.

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"I think a lot of dominoes need to fall": Denny Hamlin unsure if 23XI Racing would skip Clash as Open team

23XI Racing and Front Row Motorsports were allowed to compete in the Cup Series next season despite their legal battle with NASCAR. However, they would compete as open entries, which did not guarantee a spot in every race as it does for the teams that have signed the new agreement.

Recently 23XI Racing's co-owner Denny Hamlin was asked whether his team would show up for the clash, as open teams don't need to compete in the event. Hamlin said:

“I don't know. I think a lot of dominoes need to fall, sponsorships, things like that. So, I don’t know if that decision’s been rock solid made yet, but things are so fluid. Over the next few weeks, we’ll probably know more,"

"The Clash is always a good rep. It’s certainly one where, even though you don’t have pressure there, it’s good for the teams to work some kinks out." he added

The Clash at Bowman Gray is scheduled for Sunday, February 2nd, 2025 at 8:00 PM Easter Time. Tune in to FOX, MRN, and SiriusXM NASCAR channels and watch the Cup Series' return.