On Oct. 2, 23XI Racing and Front Row Motorsports filed an antitrust lawsuit against NASCAR. That initial lawsuit revealed the status of two Stewart-Haas Racing charters. 23XI and FRM are in agreement to buy those charters. However, there are some hold-ups.
Once thought to be the biggest story of the 2024 NASCAR season, the closure of Stewart-Haas Racing laid the groundwork for one of the most compelling stories this season.
On May 29, SHR announced its closure. With the impending charters hitting the marker, most expected a bidding war and all four to be available. We would learn in June that co-owner Gene Haas planned on holding onto a charter of his own, meaning that three charters were on the market.
Almost immediately, most insiders circled two-car teams FRM, Legacy MC, 23XI Racing, and Trakhouse as possible expansion options.
FRM, who had recently taken SHR’s spot in the upper brass of Ford, announced on May 29 that they were planning on fielding a fourth car, all but confirming their purchase.
As the summer rolled on, the expected fire sale slowed, with nothing but a trickle of rumors falling to the bottom. This was due in part to the unsure future of charters with the then-ongoing charter negotiations with the teams.
One of the most outspoken teams in these negotiations was 23XI Racing. Co-owned by Denny Hamlin and Michael Jordan, throughout the summer, Hamlin continued to spout his opinions on the talks with NASCAR.
While Hamlin voiced his frustrations, the rumor mill picked up that SHR Xfinity Series driver Riley Herbst was a prime candidate for an expanded 23XI. However, this rumor floated around with no clear future in front of them.
On Aug. 24, Trackhouse officially announced its car. With the release of Zane Smith, Trackhouse would bid on Shane Van Gisbergen to drive the new No. 88, with the rumor mill pointing Smith back to FRM for 2025.
However, what once seemed clear would change in Atlanta.
What’s Happening? The 23XI Racing and Front Row Motorsports lawsuit will continue for some time. However, many developments will occur along…
On Sept. 6, 23XI and FRM held out on signing NASCAR’s final charter agreement. This led to a month’s worth of speculation over the team’s future, including rumors that they would somehow expand to third cars despite potentially losing their charters.
On Oct. 2, everything changed when the two announced a joint lawsuit against NASCAR. This antitrust lawsuit not only confirmed the uncertain future for both teams but clarified that 23XI had agreed to purchase an SHR charter. However, that charter, alongside FRM’s new charter, was not officially their property yet.
Per Page 12 of the Oct. 2 lawsuit:
“23XI is currently in the process of acquiring a third charter. 23XI and StewartHaas Racing, LLC entered into a purchase agreement on Aug. 7, 2024, but the transaction is still in escrow and requires approval from NASCAR. In the interim, Stewart-Haas Racing, LLC signed NASCAR’s 2025 Charter Agreement.”
Furthermore, from page 13:
“In May 2024, Front Row purchased a third charter from Stewart-Haas Racing, but the transaction is in escrow and requires approval from NASCAR. In the interim, Stewart-Haas Racing, LLC signed NASCAR’s 2025 Charter Agreement.”
The two also announced a planned injunction that would allow them to race his charter teams throughout the lawsuit. However, throughout October, it was unclear what the future held for the new charters and their rumor drivers.
Some theorized that NASCAR was the hold-up on sale approval. However, on Oct. 23, a filing from NASCAR stated, “To date, Plaintiffs have not submitted a transfer request to NASCAR for these Charters.” This means that the two teams had not submitted this request and that NASCAR was not the hold-up.
As of press time, the most recent news about these charters came from outside the courtroom following the team’s Preliminary Injunction hearing. Where lawyer Jeffery Kessler clarified that “those transactions are planned to go forward.”
What’s Happening? The next major step in the 23XI Racing and Front Row Motorsports’ lawsuit against NASCAR is a hearing for…
While Kessler says that these charters will be part of these teams’ future, this is, of course, could be dependent on the result of the preliminary injunction.
NASCAR wants to take away the team’s charters and plans to field 32 chartered entries in 2025. However, had NASCAR included these charters in that revocation, that number would be 30 chartered entries.
If the teams do not get their injunction, there is no clear route for the future of these charters. Bob Pockrass of Fox Sports spoke with SHR president Joe Custer on the matter. However, his answer does not clarify what the future would be for these charters.
These planned expansions are all based on the opinion of the court, with a decision happening either Thursday or Friday. Either way, the judge decides, these two charters will be an interesting storyline to follow throughout Silly Season.
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