23XI Racing and Front Row Motorsports Denied Charter Status by Judge

What’s Happening?

Judge Kenneth D. Bell has denied 23XI Racing and Front Row Motorsports their preliminary injunction to maintain charter status throughout the remainder of the 2025 NASCAR Cup Series season.

Judge Bell has DENIED the 23XI/FRM motion for preliminary injunction with NASCAR saying it will leave six charters (out of 40) available so if that is a remedy as a result of the trial, they are available. Therefore no irreparable harm.

— Bob Pockrass (@bobpockrass) September 3, 2025

What Does this Mean?

This ruling means that the two teams, 23XI Racing, co-owned by Michael Jordan and Denny Hamlin, and Front Row Motorsports, will not retain the benefits of charter ownership for the remainder of the season.

Charters give teams automatic entry and revenue sharing for one car; these charters cost millions of dollars but give teams something to fall back on if they sell or close their operation. Teams can own up to three charters, per the 2025 NASCAR Charter Agreement, though four charter-owning teams have been grandfathered in.

Last season, FRM and 23XI owned two charters each and agreed to purchase one each from the shuttering Stewart-Haas Racing, but, when NASCAR allegedly gave teams an all or nothing charter agreement in September, these two teams refused to sign, waiving their charters for the 2025 season and beyond.

On Oct. 2, 2024, the teams sued NASCAR on antitrust grounds, while also filing a preliminary injunction that would force the sport to complete the sale of the two SHR charters and return their two charters a piece for the remainder of the lawsuit if they proved they would suffer irreparable harm by losing their charters.

In late November, the teams denied this injunction but filed a new one with additional evidence proving claims that drivers, such as Tyler Reddick, and sponsors could leave without charter status. On Dec. 18, Judge Bell ruled in favor of the teams, with NASCAR appealing this decision shortly after.

On Jun. 5, 2026, the United States Court of Appeals for the Fourth Circuit ruled in favor of NASCAR, eliminating the team’s charter status and leading to this most recent injunction. However, after this ruling, NASCAR submitted a rule change that essentially guaranteed that the two teams would be able to enter races without fear of DNQs

The charter saga is just one of many storylines stemming from the two teams’ Oct. 2, 2024, antitrust lawsuit filed against NASCAR. We have extensively covered all aspects of this lawsuit via the timeline linked below.

What led the Judge to this Ruling?

In his ruling, Judge Bell claims that a list of commitments and representations submitted to the court by NASCAR on Friday, in which they assert they will retain at least six charters for the teams, pending the result of the December antitrust trial, indicates that the two teams are not subject to irreparable harm.

While maintaining charter status was important to the teams, keeping NASCAR from transferring the team’s former charters was just as important. However, NASCAR’s commitment maintains that should the sport be forced to return the six charters to the two teams, they will be able to do so while also continuing their plans to distribute charters to interested teams for the 2026 season.

Bell also clarifies that any loss of sponsorship or financial hurt ot the teams “can either be compensated with money damages at trial or is simply inherent in the risks associated with the lawsuit.”

Though they lost this injunction, the teams will get to retain their charters should they be awarded them by winning at trial. Following this ruling, in a statement, the two teams’ lawyer, Jeffery Kessler, said:

“We are grateful that Judge Bell has made clear that the status quo is being maintained – protecting my clients’ rights to regain their charters if they prevail at trial and ensuring their ability to continue racing through the 2025 season based on NASCAR’s commitments. Equally important, Judge Bell reaffirmed his broad power to order meaningful changes in NASCAR should we succeed, so that teams, drivers, sponsors, and fans can benefit from a sport positioned for long-term growth and restored competition. We are ready to present our case at trial in December.” — Jeffery Kessler

How is NASCAR Planning to maintain the Six Charters and distribute them to New Teams?

Last Monday, NASCAR informed the court of its intentions to “convey “ a charter to an unknown team. Prior to this, the sport claimed in the past that teams wanting to obtain a new charter would need to know by Oct. 1 in order to prepare for the coming season.

So, if NASCAR is planning to distribute charters to new parties but retain at least six for Front Row Motorsports in 23XI Racing, how can they do so?

When NASCAR introduced the charter system in 2016, it distributed 36 charters; however, there are technically 40 charters, with four currently retained from the public market by NASCAR. For years now, most suspected these charters for a new OEM entering the sport, though, have now seemingly come into play in this lawsuit.

Judge Bell said in his ruling today that he will consider any charters doled out to new teams as one of these currently off-the-market charters. This clarification also gives the teams something they asked for in a filing on Tuesday, as they requested the charters returned to them (should they win the trial) must maintain the “rights to the car number, historical or championship points, and any performance-related standards history.”

This means if they get their charters back, it will be the six they started the season with, including the two they acquired from Stewart-Haas Racing as part of the overturned preliminary injunction from last December.

Where Does the Trial Go From Here?

The charter saga and injunctions were more of a side plot than anything, as there is still the initial lawsuit and a Mar. 5 countersuit filed by NASCAR against 23XI Racing, Front Row Motorsports, and 23XI investor Curtis Polk.

For now, it seems like the teams’ battle to retain charters is over, while NASCAR can look to distribute charters to new teams. However, if the teams win at trial in December, there is no guarantee of anything, no, seriously, anything, even the charter system.

In his Wednesday ruling on the injunction, Bell made a similar statement to one he made during the fiery hearing last Thursday, saying “The uncertainty about what the 2026 season will look like unfortunately exists not just for the Parties, but for the other teams, drivers, crews, sponsors, broadcasters and, most regrettably, the fans.”

This means that if the teams win, NASCAR could look completely different by February. While the two parties could settle, it seems ever more unlikely that they will go that route.

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