23XI and FRM May Have to Refund Significant Winnings Paid Out Through the First 20 Races of 2025

What’s Happening?

Things seem to be going from bad to worse for 23XI and Front Row Motorsports when it comes to their ongoing antitrust lawsuit against NASCAR. Last week, it was reported that the Fourth Circuit Court denied their appeal. Then, earlier this morning, the teams filed for another restraining order. If passed, the order would allow the teams to finish out the year as chartered entries. However, NASCAR is said to be set to strip the six charters away on Wednesday. A sale will soon follow. If the teams cannot retain their charters, it is possible that they could go out of business.

Also Read:

Now, it was reported by Adam Stern, through NASCAR, that the teams might even have to issue refunds of a large portion of the winnings earned through the first 20 races of the 2025 season. The exact sum of money that this will account for is unknown at this time. However, since open cars receive about a third of the race winnings that chartered cars receive, we can deduce that it could be as high as two-thirds (or 66.66%) of their total winnings earned so far this year.

Things to Note:

• The point of these lawsuits was that 23XI owners, Denny Hamlin and Michael Jordan, believed the current business model of NASCAR to be unsustainable for the long term. This tracked. Around the same time, Jeff Gordon, an executive of Hendrick Motorsports, took to the media. In interviews, he claimed that modern race teams do not turn a profit.
• In the end, though, HMS and most other teams signed onto the charter agreement. The two holdouts subsequently got entangled in a fierce legal battle with the sanctioning body. What followed was a rollercoaster ride of legalese and subsequent injunction filings.
• Initially, NASCAR stripped the teams of their charters. They were then restored until the lawsuit was wholly resolved.
• 23XI and Front Row are set to lose their charters this Wednesday. As part of the new injunction, the teams allege that the move could run them out of business. We’ll continue to update this story as more information becomes available.

Let us know your thoughts on this! Join the discussion on Discord or X, and remember to follow us on Instagram, Facebook, and YouTube for more updates.