The 23XI Racing NASCAR lawsuit has become one of the sport’s most critical ongoing stories, overtaking even speculation about next season‘s champion as the December trial date approaches. 23XI Racing, joined by Front Row Motorsports, has accused NASCAR of monopolistic conduct in stock car racing, and the outcome could decide whether these teams remain on the grid or are forced to close operations.
Legal Battle Intensifies as Trial Approaches
NASCAR demanded teams agree to a new charter deal ahead of the 2024 playoffs, warning that refusal could mean losing their coveted charters. All but 23XI Racing and Front Row Motorsports accepted the deal, as these two teams instead launched an antitrust lawsuit challenging NASCAR’s practices. Currently, both teams are competing as open teams after a court declined to issue a preliminary injunction in their favor. Though NASCAR has temporarily agreed not to sell their charters until December’s trial concludes, the stakes remain incredibly high, and neither side knows exactly what they could win or lose in court.
Potential Outcomes and Risks for Racing Teams
Following questions from Kevin Harvick, NASCAR journalist Bob Pockrass outlined the possible ramifications facing both the teams and the broader series.
“In December, the jury can award monetary damages, but anything that would break up the monopoly is the judge’s decision. So both sides would then propose options if 23XI wins, which is far from guaranteed. If they do win, the judge would make that decision after hearing recommendations from both sides. At that point, it could be the time when they come to the negotiating table.”
— Bob Pockrass, NASCAR Journalist
The heart of the dispute is control over the charter deal and the distribution of race purse funds, with 23XI Racing and Front Row Motorsports fighting for a stronger negotiating position and involvement in NASCAR’s business decisions. Success in court could mean they gain more influence and financial share. If the court sides with NASCAR, though, the teams would have to accept the existing charter standards, continue as open teams with uncertain entry and financial instability—or potentially shut down.
Severe Consequences Loom if Lawsuit Fails
Pockrass believes the impact on these teams could be devastating should they lose. Competing without a charter significantly reduces their race purse earnings and removes the guarantee of entry into each event, making continued operations financially unsustainable. According to Pockrass, 23XI Racing and Front Row Motorsports have committed more than a year fighting for these changes and are unlikely to simply accept unfavorable terms after such a lengthy battle. Instead, shutting down remains a likely possibility if the court does not rule in their favor.
“They won’t have charters, right? So, how many teams would they want to operate if they continued? Or would they just sell the building, equipment, and everything to someone with a charter and hope it plays out like when Trackhouse did with Ganassi several years ago? I don’t see them sticking around without a charter and trying to race as an open team.”
— Bob Pockrass, NASCAR Journalist
For these teams, selling off assets to another organization, similar to when Trackhouse Racing acquired Chip Ganassi Racing’s operation, could be the only realistic exit strategy if forced out. The prospect of racing without a charter is so economically unfavorable that shutting the operation seems increasingly likely.
Uncertain Future for Teams and the Sport
Whether 23XI Racing and Front Row Motorsports will be on the track in 2026 is uncertain, as their survival hinges on the legal outcome. Appeals are expected no matter which side wins in December, likely extending the uncertainty by at least another year. If the teams are successful, a preliminary injunction could allow them to continue racing throughout the appeals process. However, if NASCAR prevails, the teams risk being relegated to the margins and losing any meaningful chance at future success, with their very existence threatened while legal battles continue.
The entire Cup Series community is watching this case unfold, as its results could reshape team operations, ownership power dynamics, and financial structures in NASCAR for years to come. The outcome of the 23XI Racing NASCAR lawsuit will determine not just the fate of these two embattled teams, but could set a lasting precedent impacting others throughout the sport.
