23XI and Front Row Motorsports File Motion for Another Temporary Restraining Order to Remain Chartered in 2025

What’s Happening?

Last week was a big week for the NASCAR and 23XI/Front Row Motorsports lawsuit. The Fourth Circuit Court of Appeals ruled in favor of NASCAR last week, meaning that 23XI and Front Row Motorsports could lose their charters on Wednesday ahead of the race weekend in Dover. As a result, the teams have filed an additional temporary restraining order and preliminary injunction to maintain their charters for the remainder of the 2025 NASCAR Cup Series Season.

Bob Pockrass of FOX Sports reported that in their new filing, the teams have submitted new evidence that NASCAR intends to immediately sell or issue the six charters to other NASCAR team owners/interested parties. According to the filing, this puts the teams in “irreparable jeopardy of never getting their charters back and/or going out of business.”

You Need to Know

• The charter negotiations have been a hard-fought legal battle since the beginning of the 2024 season. Initially, it looked as if the NASCAR teams had a united front against NASCAR and its “unfair” new charter proposal. Many teams, considering the amount of money they had spent on their charters, wanted the charters to be made permanent. The desired model is similar to the NBA franchising model Michael Jordan, co-owner of 23XI Racing, is used to.
• Ultimately, the only two holdouts were 23XI Racing and Front Row Motorsports. This resulted in a lengthy legal battle. Initially, it appeared as though the teams had the upper hand. On December 18th, 2024, a judge ruled that NASCAR had to allow the teams to sign a temporary charter agreement. This meant that they were granted a temporary restraining order for the 2025 season.
• However, after last week’s ruling, the teams are slated to lose their charters as early as Wednesday. This means that they are at risk of going out of business. Open teams in NASCAR only make about a third of the revenue of chartered teams. If this is allowed to occur, it could spell a huge financial loss for both teams involved in the suit.

NASCAR Issues Its Statement

NASCAR responded to 23XI and FRM’s filing to receive yet another restraining order. The governing body says that it’s “unfortunate” that 23XI isn’t “respecting the clear rulings of the Fourth Circuit Court”. They deem the lawsuit “damaging and distracting”. NASCAR also claims that they have presented the teams with numerous opportunities to submit a proposal to resolve the issue. The plan to strip the teams of their charters by Dover appears to be moving forward.

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