NASCAR Clarifies Policies on Transferring 23XI/FRM Charters

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Kauy Ostlien

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What’s Happening?

On Friday, NASCAR notified the court of how it intends to approach the six charters formerly possessed by 23XI Racing and Front Row Motorsports following a fiery preliminary injunction hearing on Thursday.

In this response, NASCAR, which previously informed the court on Monday of its intention to “convey” a charter to a new, unknown team, is now saying it will hold at least six charters, including the two the teams acquired from the defunct Stewart-Haas Racing, until the end of the trial in December.

The teams acquired these two charters via a Dec. 18 preliminary injunction that also granted them charter status for their four previously owned charters. On Jun. 5, this injunction was overturned in the appeals court, and on Thursday, the teams went to court for a hearing on why they should be granted a new injunction preventing NASCAR from selling their now former charters.

The teams have claimed as recently as this week that NASCAR selling the charters would have the teams looking at “the imminent destruction of their businesses, regardless of how the jury rules.”

In Friday’s filing, NASCAR states it “will not effectuate a sale, conveyance, or lease of either of two (2) inactive Charters, which were previously held by Stewart-Haas Racing” and that it “will not issue, sell, convey, or lease more than four (4) additional Charters for the 2026 Cup Series season.”

This leaves a total of ten currently unused charters of 40 total, including the four NASCAR has yet to divvy out since the formation of the system in 2016. Notably, during yesterday’s hearing, Judge Kenneth D. Bell asked if NASCAR could theoretically assign a bonus charter from one of these four.

Still, in this response, NASCAR maintains that it wants the injunction thrown out. 23XI and FRM’s lawyer, Jefferey Kessler, has already responded, saying that the teams disagree with this filing and that they intend to file a formal response on Tuesday.

A ruling on the team’s latest injunction to maintain charter status and keep NASCAR from selling its charters is expected to be released next week.

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.

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Picture of Kauy Ostlien

Kauy Ostlien

All Posts