Both Plaintiffs, Front Row Motorsports and 23XI Racing, in the NASCAR antitrust lawsuit have a major question lingering as the season draws to an end. What will happen to their two new charters? Denny Hamlin finally commented on these this past weekend, but his response only raises more questions than answers.
What’s Happening? Several shocking tidbits of information have arisen from 23XI Racing and Front Row Motorsport’s lawsuit against NASCAR. The 46-page…
When 23XI Racing and FRM announced their lawsuit on Oct. 2, many people flocked to the text. In the suit’s body, pages 12 and 13 contained some key information that most people didn’t know they were looking for.
On page 12, we learned that FRM’s newly purchased charter still was not owned by FRM. Despite announcing the purchase in June, by Oct. 2, FRM had yet to announce the driver of that car. This is likely due to the fact that NASCAR has not approved the transaction yet, per the lawsuit:
“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.”
As shocking as this new information was, page 13 further expanded on this story by confirming that 23XI also purchased a charter, and, much like FRM’s, its future is in limbo, awaiting NASCAR’s approval.
“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.”
When the NASCAR community learned about these charters, many fans and insiders were curious about what this meant for the long term. Both teams are at risk of losing their charters. However, whether or not this includes their new ones is unclear.
Last week, NASCAR responded to 23XI and FRM’s preliminary injunction request. This request would have granted 23XI and FRM the right to compete in 2025 as members of the 2025 NASCAR Charter Agreement, with a few caveats.
This response from NASCAR confirmed that the sport is planning on just 32 of 36 chartered entries next year. Notably, those 32 would mathematically include the four Stewart-Haas Racing Charters, one of which is going to Trackhouse racing. However, there is still no word on what is happening with the two purchased by the Plaintiffs.
NASCAR’s response, as interesting as it was, contained no information about the two new charters. Most wondered whether the teams would gain the charters if the injunction was granted. This would allow them to enjoy the benefits of charter ownership and their new charters, an all-out win for the Plaintiffs.
However, Bob Pockrass of Fox Sports reported on Saturday that 23XI Racing co-owner Denny Hamlin says he and NASCAR have not discussed the approval of these charters.
What’s Happening? 23XI and Front Row Motorsports face an uncertain future with their upcoming Nov. 4 injunction hearing. This preliminary injunction…
Unfortunately, this report fails to answer any major questions and, in fact, only raises more questions about the status of these transactions. Who is affected by the holdup? What are NASCAR fans waiting for? What is the worst-case scenario for SHR and 23XI?
Several parties are negatively affected by this, both the purchasers, FRM/23XI, and the seller, Stewart-Haas Racing. SHR is closing up shop at the end of the year and would like to have three charters sold, and this only drags SHR into the two sides quarrel.
An unlikely scenario that benefits SHR is that NASCAR approves the sale, 23XI and FRM don’t get their injunction, and NASCAR revokes six instead of four charters. However, this scenario remains unlikely as both parties seem to be focused on the Nov. 4 injunction hearing rather than figuring out this small detail.
If NASCAR holds up the charters, SHR will miss out on millions of dollars. If they approve the sale, 23XI and FRM get their charters. However, this only matters if the two get their injunction, and that is not up to NASCAR but rather the courts.
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