Tony Stewart’s SHR charters eyed by other rivals as 23XI and FRM’s legal battle with NASCAR escalates

With NASCAR's ongoing lawsuit battle, two of the three charters from the now-discontinued Stewart-Haas Racing team are on hold. However, a NASCAR insider believes some other teams are interested in acquiring them before the 2025 season starts.

For context, SHR, previously co-owned by Tony Stewart, is selling its charters after downsizing its Cup Series entries from four to one. 23XI Racing and Front Row Motorsports are the frontrunners to purchase one charter each, but NASCAR has reportedly denied the transfer amid the antitrust lawsuit.

Per Jordan Bianchi via The Teardown, some other teams are looking to expand their driver lineup by purchasing an SHR charter.

"The SHR part is certainly interesting and I don't think you would necessarily see a lawsuit from SHR. From my understanding and the conversations I've had with people... people have made inquiries about those charters. Like, 'Hey, are those available? If they're available we're interested in them,'" Bianchi said. [7:31]

The insider added that SHR should be looking to sell the charters before the season starts about two months from now.

"I don't think that SHR's going to be in a spot of like, 'What are we going to do here? We don't want these. We're in scramble mode.' I think they're going to have suitors for them. The problem is we're in mid-December and the season starts in what, eight weeks or whatever it is. And so you've got a lot to sort out between then."

For the 2025 season, SHR will be rebranded as Haas Factory Team, fielding Cole Custer in the No. 41 Ford Mustang. Stewart will also leave the sport after competing as a driver and team owner for about three decades.

While one of the charters has been sold to Trackhouse Racing, the status of the two charters is yet to be determined, depending on several factors such as the outcome of the ongoing lawsuit battle between 23XI Racing/Front Row Motorsports and NASCAR.

---

23XI Racing and Front Row Motorsports claim NASCAR withdrew the charter transfer

In the latest update on the lawsuit, 23XI Racing and Front Row Motorsports claim NASCAR denied the charter transfer after initially approving it. The plaintiffs believe that the preliminary injunction request influenced the change of heart.

Per Bob Pockrass on X (formerly Twitter), the insider reported:

"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."

In defense, the series owners claimed FRM intended to sign the charter agreements last September 12 but asked for more time. However, the Mooresville-based outfit later changed its mind, refused to accept the terms, and filed a lawsuit.

"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.

Without a charter, 23XI Racing and Front Row Motorsports would run as open teams. This means the teams won't have guaranteed entries to the 36-race schedule in 2025.

In addition, the teams would miss out on huge payouts, which could eventually lead to losing sponsors.

23XI Racing driver Tyler Reddick (45) reached the final 4 this year - Source: Imagn

23XI Racing and Front Row Motorsports still plan to compete next year.

The Toyota-affiliated team will field Tyler Reddick, Bubba Wallace, and its newest driver, Riley Herbst. Meanwhile, FRM will run with Todd Gilliland and Noah Gragson, though it plans to add a third driver.