With only days left before their charters are set to be revoked, 23XI Racing and Front Row Motorsports have turned to the courts in a last-ditch bid to preserve their place in NASCAR. The 23XI Racing charter legal battle now stands as a critical moment for both teams at risk of losing their livelihoods, financial stability, and any guaranteed role in the 2025 Cup Series.
Courtroom Drama Deepens as 23XI Racing and Front Row Motorsports Fight for Survival
Time is running out for 23XI Racing and Front Row Motorsports, the teams scrambling to hold on to their valuable charter status before NASCAR strips it away on Wednesday. On Monday, both organizations sought a legal lifeline, filing a motion in U.S. District Court that asks for a temporary restraining order and a preliminary injunction. Their urgent petition hopes to halt the removal of their charters, which could otherwise mean financial collapse and the end of their NASCAR participation.
This recent legal filing comes after a critical setback in June, when a three-judge panel from the Fourth Circuit Court of Appeals reversed an earlier preliminary injunction. That lost injunction had temporarily let 23XI Racing and Front Row Motorsports keep their chartered privileges, despite not agreeing to NASCAR’s 2023 deal. Following a denied rehearing on July 9, the two teams face the threat of being relegated to “open team” status at the Dover race next Sunday. As a result, their attorneys asked the Charlotte-based federal court to speed up proceedings and hear their plea before the looming deadline.
“As expected, 23XI/FRM have filed a motion for another temporary restraining order and preliminary injunction to remain chartered for rest of 2025. Right now, they are set to lose their chartered status Wednesday.”
— Bob Pockrass (@bobpockrass) July 14, 2025
The official documents spell out the urgency: the teams have made their latest motion
“to protect the status quo and prevent the irreparable harm that will result if (they) lose their charter rights or are forced to unwind their charter purchases before trial (December 1).”
The argument builds on the aftermath of the Fourth Circuit’s recent decision. According to the filings,
“While the Fourth Circuit has vacated the prior preliminary injunction, and the mandate is scheduled to be issued on July 16, the Fourth Circuit’s decision was based on the narrow holding that NASCAR’s release in the 2025 Charter Agreement is not, standing alone, exclusionary conduct in violation of Section 2 of the Sherman Act.”
23XI Racing and Front Row Motorsports maintain that their broader claims—especially those centered on other alleged exclusionary tactics by NASCAR—remain unresolved. The legal documents contend,
“The Fourth Circuit expressly did not consider NASCAR’s other exclusionary acts that… clearly establish that (23XI and Front Row) are likely to prevail at trial.”
As the legal wrangling continues, NASCAR’s intentions have also raised alarms. The teams allege that the sport’s governing body is poised to resell or redistribute their charters to competitor outfits, a move that could permanently drive them out of the series.
The risk goes well beyond court arguments—without charter protection, the business model for both teams falls apart. The legal filings highlight,
“As the Court has already found, it is not economically viable for a team to participate in the Cup Series on a long-term basis racing under an ‘open’ agreement,”
underscoring that neither 23XI Racing nor Front Row Motorsports could survive financially without charter status. The effect would ripple throughout their organizations, impacting sponsorships and rosters. Their attorneys caution,
“Moreover, if Plaintiffs are forced to relinquish their charters before trial, they once again will face the prospect of losing key sponsors and star drivers, who will have the right to terminate their contracts and have already signaled their intention to pursue driving opportunities with other teams (should Plaintiffs lose their charter rights).”
With the future on the line, 23XI Racing and Front Row Motorsports are seeking a temporary restraining order and preliminary injunction to preserve their status and remain competitive as chartered entries for the rest of the season, at least until their trial date in December. The next few days stand to shape the fate of these teams within the turbulent world of NASCAR.
The Crucial Value of Charter Status for NASCAR Operations
For teams in NASCAR, retaining a charter isn’t just important—it determines their very existence. Should 23XI Racing and Front Row Motorsports lose their charters, their cars would no longer be guaranteed starting spots. Instead, they’d become “open entries,” fighting for scarce grid positions and receiving less than a third of the financial payout that charter holders enjoy.
This system is undeniably restrictive. NASCAR’s Cup Series field of 40 cars allots just 36 starting slots for chartered teams, with only four remaining for open teams. Data from the season shows just how tough it is to break into those few open spots: out of the first 19 Cup races, only twice did more than four open teams attempt to qualify. The numbers alone reveal the immense disadvantage for non-chartered teams—a point constantly emphasized by those at risk.
Beyond sporting opportunity, the loss of a charter would devastate 23XI Racing’s finances and could force a fire sale or outright closure. Team officials also worry that NASCAR could rapidly reassign their charters elsewhere, further eroding any chance for survival. For both 23XI Racing and Front Row Motorsports, this legal fight is about more than grid slots or contracts; it is about staying afloat in a high-stakes environment where the cost of failure is complete elimination from NASCAR’s main stage.
Navigating an Uncertain NASCAR Future
The ongoing 23XI Racing charter legal battle marks a pivotal moment for Michael Jordan’s team and Front Row Motorsports. With their charter rights and entire business models at stake, the outcome of their latest court challenge could set a precedent for how dissenting teams engage with NASCAR’s governing structure. As sponsors, star drivers, and the fans watch closely, the next steps in court will determine if these teams can preserve their places in the Cup Series—or if Wednesday’s pending decision will mark an abrupt end to their NASCAR ambitions.
Our Reader’s Queries
Q. Who is the CEO of 23XI Racing?
A. Hall of Fame basketball player Michael Jordan and current Joe Gibbs Racing driver Denny Hamlin, who has won the Daytona 500 three times, own and manage it.
