New developments in the 23XI Racing NASCAR charter lawsuit update signal deepening conflict, as both 23XI Racing and Front Row Motorsports have threatened to cease operations if their charters are sold following recent court decisions in the antitrust case against NASCAR. This standoff, intensifying since October of last year, continues to shake the Cup Series and raise questions about the future of these major teams as NASCAR withholds concrete details on 2026 charter distribution.
The dispute began when 23XI Racing and Front Row Motorsports accused NASCAR CEO Jim France and the sanctioning body of monopolizing Cup Series team rights, refusing to accept the new charter deal in late 2024. Both teams then filed a legal complaint seeking antitrust relief, challenging the authority and procedures used by NASCAR leadership and seeking more team-friendly terms. The legal battle included a dramatic courtroom sequence in July 2025 when the court denied the teams’ request for a restraining order, deciding in favor of NASCAR and leaving 23XI and Front Row without their crucial charters.
As a direct result, the two organizations have been forced to compete as so-called open teams throughout the rest of the season. The lack of charters not only affects their financial standing but also leaves their future in jeopardy, as teams without charters miss key guaranteed benefits and slot guarantees due to recent rule changes implemented by the governing body in mid-2025.
Teams Warn of Potential Closure After 2025 Season
Fresh reporting from FOX Sports revealed that NASCAR intends to grant new charters to an undisclosed team starting in the 2026 season, further fueling the anxiety of both 23XI Racing and Front Row Motorsports. In response, team representatives have directly warned NASCAR—and the wider motorsport community—that the sale of their former charters could trigger both teams to shut down after the 2025 season.
One official statement from the teams underscored the seriousness of their position:
“following the 2025 Cup Series season.”
—23XI Racing and Front Row Motorsports, Team Representatives
Reporting on the situation, Bob Pockrass highlighted the gravity of the looming shutdown:
“NASCAR says it plans to issue a charter to a team (that it didn’t name) for 2026 while 23XI and Front Row Motorsports said if the charters they had earlier this year are sold, they would shut down ‘following the 2025 Cup Series season.’”
—Bob Pockrass, NASCAR Analyst
With just ten weeks remaining in the 2025 Cup Series calendar, both racing outfits are pressing hard in court to secure their charter status. Not only do charters bring a much-needed financial boost, but a summer rule change from NASCAR now guarantees race entry only to chartered teams, further increasing the risks for open teams like 23XI Racing and Front Row Motorsports.
Legal Maneuvers Intensify as Teams Seek Court Protection
Facing the August 28 court date, both 23XI Racing and FRM have requested a new injunction to be officially recognized as chartered teams for the remainder of the 2025 racing year. As part of their appeal, the teams pressed their argument that the economics of operating as open teams is unsustainable:
“This court has already found that it is not economically viable to race as open teams on a long-term basis … and NASCAR did not challenge that finding on appeal.”
—23XI Racing and Front Row Motorsports, Team Appeal via FOX Sports
This ongoing struggle is drawing out the legal contest, and the matter is currently set for trial in December 2025. Both teams, their drivers—including Bubba Wallace, Tyler Reddick, and Riley Herbst for 23XI Racing and Todd Gilliland, Zane Smith, and Noah Gragson for Front Row Motorsports—and their sponsors face uncertainty regarding their presence in the Cup Series beyond the current season.
NASCAR President Responds with Disappointment and Concern
NASCAR president Steve O’Donnell recently addressed the controversy in an interview with YouTuber Eric Esteep‘s Out of the Groove podcast. O’Donnell expressed a conviction that the lawsuit wasn’t NASCAR’s intention and voiced frustration over the rift this dispute has created between teams and the sanctioning body.
“I can’t get into the specifics, right, of the litigation, but uh it’s important that uh I think everyone knows, you know, teams sued us, right? We didn’t ask for this. Um, we’re still not sure what they’re even asking for. Um, candidly, in terms of an outcome, what we’ve seen really doesn’t have anything to do with why the lawsuit was brought. So it’s a little bit perplexing.”
—Steve O’Donnell, NASCAR President
O’Donnell continued with his reflections on the toll that the lawsuit is taking on NASCAR and its ability to push the sport forward:
“Um, but I think at the end of the day, um, you know, NASCAR is certainly going to, you know, we’ve got an 80-year history for our sport. We’ve got owners who are, uh, you know, signed up with charters, and we’re working hard every day to grow the sport. And I think what’s probably most disappointing, even for me personally, is, you know, we’re spending time on this topic versus growing the sport. And, you know, I’m not sure our fans, you know, want to hear about lawsuits a lot of times,”
he added.
Beyond the executive suite, this prolonged friction has cast uncertainty over the future of the Cup Series roster, the stability of sponsorship deals, and the ability of promising drivers to compete at the highest levels.
The Road Ahead for NASCAR and Its Teams
With the December trial date approaching and charter decisions looming, the motorsports world is watching to see how the NASCAR governing body, led by figures such as Jim France and Steve O’Donnell, will respond to the growing backlash from high-profile teams like 23XI Racing and Front Row Motorsports. The threats of team closures highlight the profound impact that unresolved legal battles and charter decisions can have on the sport’s stability and evolution, especially as new names and entities vie for a place in the 2026 Cup Series lineup.
The outcome of this lawsuit—and any subsequent negotiations or injunctions—will help define the long-term commercial landscape of NASCAR, shaping how teams, drivers, and fans experience the Cup Series in coming years.
