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23XI Racing and Front Row Motorsports announced on Saturday morning that they will race in the Cup Series next season as “open teams.” NASCAR has removed the anticompetitive release requirement that would’ve prevented the teams from racing in the series while their antitrust lawsuit against NASCAR continues. The two teams released a statement on the decision.
NASCAR’s charter agreement states that teams cannot sue the sanctioning body on antitrust grounds. Even if they ran as “open teams,” the same provision still applies. 23XI and Front Row augured this last week during their preliminary injunction hearing, which was denied by a judge last Friday. 23XI and Front Row are appealing the denied injunction.
Some might think that the two sides came to an agreement to allow 23XI and Front Row to race. Denny Hamlin clarified that NASCAR simply removed the provision and no agreement was met.
Chartered teams receive many benefits, including more purse money and guaranteed spots in every race. As “open teams,” 23XI and Front Row must qualify for every race they enter and will not receive the same financial benefits as chartered teams. The duo argues that running as “open teams” will cause irreparable harm, as sponsors and drivers could walk away without the guarantees a charter provides. NASCAR has yet to comment on the decision.
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