Several shocking tidbits of information have arisen from 23XI Racing and Front Row Motorsport’s lawsuit against NASCAR. The 46-page filling includes previously unknown facts about the 2025 NASCAR Charter negotiations and what the two teams could be risking by suing the sport.
This year, Silly Season has had a different tone, similar to the start of the 2021 season. Teams are focusing on charters and expansion rather than drivers shuffling seats. This focus is due to the 2025 NASCAR Charter Agreement and the sale of three Stewart-Haas Racing charters.
It’s not that the SHR story hasn’t resulted in a driver shuffle. It has, however, also resulted in a multi-month news cycle of who, what, and when. SHR’s first charter buyer was Front Row Motorsports, which publicly announced its purchase in May.
There was little to no news on who would be next. Yet, two names, Trackhouse Racing and 23XI Racing, kept popping up in the rumor mill. Trackhouse announced its expansion in August at Daytona, leaving one charter left.
While teams were negotiating the terms of a new charter, they were also negotiating with NASCAR for the charter system’s very existence.
The system, introduced in 2016, gives teams a charter to field one car in points races throughout the season and join in on revenue sharing with NASCAR and its tracks. The system continues through a Charter Agreement, which the teams and NASCAR attempted to extend throughout the year.
Owners have been vocal throughout 2024 about NASCAR’s leverage in these negotiations. Most notably, Denny Hamlin, driver of Joe Gibbs’ No. 11 and co-owner of 23XI Racing. Hamlin, alongside his fellow owners, are outspoken on their opinions of NASCAR and its business practices.
The negotiations came to a head at the first playoff race in Atlanta on Sept. 6. During this time, NASCAR allegedly pressured teams to sign, threatening them with charter revocation if they did not sign the massive agreement within a short time frame.
Following this, 23XI and FRM publicly stated that they had held out on signing, leaving not only their charters in doubt but also their futures.
When 23XI and FRM publically announced their lawsuit, many fans and reporters flocked to the suit to find some “unknowns.” Pages 12 and 13 had those unknown tidbits of information.
Those pages contain information that 23XI and SHR agreed not only on a sale price for a third charter but also that 23XI and FRM’s third charters are on hold pending NASCAR approval.
As Page 12 states regarding 23XI:
“23XI is currently in the process of acquiring a third charter. 23XI and StewartHaas Racing, LLC entered into a purchase agreement on August 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.”
As Page 13 states regarding FRM:
“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.”
This news is odd, as FRM announced its expansion on May 29. Some suspect NASCAR held out on approving the sale until FRM, and 23XI signed the new Agreement, which they did not.
These two teams are putting everything on the line by not signing the 2025 Charter Agreement and suing NASCAR.
They could lose their charters, which would mean losing millions of dollars in winnings and revenue sharing from NASCAR. However, the two are filing an injunction that would allow them to race their charters under the 2025 NASCAR Charter Agreement.
The problem is that there is no word on whether or not they would still acquire their third charters. It could be as simple as NASCAR approving the sale if the injunction goes through. But, it could be as complex as NASCAR not approving the sale even if the injunction goes through.
The second option would affect not only the two plaintiffs but Gene Haas and Tony Stewart, who are attempting to sell their charters. Haas is reorganizing SHR into one chartered team called the Haas Factory Team for next season.
We have no way of knowing how this will play out, but if the short history of this lawsuit tells us anything, the result could be fascinating.
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