23XI and FRM Win Major Victory Over NASCAR: Can Race as Chartered Teams in 2025

Let us know what you think

Join the conversation on socials

Picture of Kauy Ostlien

Kauy Ostlien

All Posts

What’s Happening?

Following a re-filing of their Preliminary Injunction, a North Carolina Judge has ruled that 23XI Racing and Front Row Motorsports will race as Chartered teams in 2025. Furthermore, the two teams will be able to acquire their two new Charters from Stewart-Haas Racing.

Update:
A deeper look into the ruling confirmed that Truck Series standout Corey Heim has a contract with 23XI Racing. However, the details of this are unknown.

Furthermore, the filing revealed that Bubba Wallace, Corey Heim, Noah Gragson, and Tyler Reddick reached out to their teams about free agency should they not have Charters. Reddick informed the team following the Nov. 8 ruling that they “breached his Driver and Personal Services Agreement.”

The Ruling

When 23XI and FRM filed their initial Oct. 2 antitrust lawsuit against NASCAR, the two parties announced a plan to motion for a Preliminary Injunction. This Preliminary Injunction would allow the teams to compete as Chartered teams throughout the lawsuit with NASCAR.

The teams were the only two not to sign the 2025 NASCAR Charter Agreement and risked losing their Charters by not signing and suing NASCAR. This is due to a release provision in the agreement releasing NASCAR from antitrust claims from its teams.

Furthermore, the two teams were fighting for two new Charters, which they agreed to purchase from Stewart-Haas Racing. NASCAR had not approved the transfer of these Charters to the teams prior to the lawsuit. With this new ruling, the two teams will get their new Charters and the financial benefits of those Charters.

NASCAR can appeal this ruling; however, at press time, it is unclear if or when they will do so.

Background

On Nov. 8, the teams were denied this injunction due to a failure to show irreparable harm. They planned to appeal this. However, they opted to re-file on Nov. 27 with new evidence sealed to the public.

Some of that evidence was a statement from former SHR president Joe Custer, who claimed in an affidavit that NASCAR not transferring the Charters would irreparably harm what remains of SHR. Custer, 23XI, and FRM also claimed in that Dec. 12 filing that NASCAR had told them in the past the transfers would go through prior to the suit.

Wednesday’s ruling also revealed that if the teams had not had a charter, Tyler Reddick would have been a free agent. Whether he would have left the team is unknown, as they have their injunction. This ruling is by far the most important part of this lawsuit, as it legitimizes the team’s overall antitrust lawsuit.

We have covered this lawsuit extensively via the timeline linked above. This is a developing story and will be updated as new information is available.

What do you think about this? Let us know your opinions on Discord or X, and don’t forget that you can also follow us on InstagramFacebook, and YouTube.

Share this:

Picture of Kauy Ostlien

Kauy Ostlien

All Posts