Menu
23XI and Front Row Motorsports lawsuit, as shocking as it is, has unraveled some new storylines of its own. The 43-page filing contains all the need-to-know information about the lawsuit. However, it also features some hidden information that paints the broader picture of this upcoming legal battle.
23XI Racing’s co-owner, Denny Hamlin, has often spoken about his wishes to expand the team to a three-car operation. With SHR closing this season and three charters dispersing, 23XI’s expansion seemed imminent.
While Trackhouse Racing and lawsuit partner FRM publicly announced their charter purchases, the third charter lingered. It was no surprise as Denny was publicly upset about NASCAR’s Charter negotiations. However, the rumors were so intense that insiders pinned a driver of the third car, SHR’s Xfinity Series driver Riley Herbst.
However, page 12 of the lawsuit against NASCAR reveals that 23XI already entered an agreement to purchase the charter on Aug. 7. This date is prior to NASCAR’s alleged “forced” signing of the new Charter Agreement of which 23XI and FRM held out.
While most thought the uncertainty brought from this was why 23XI hadn’t announced expansion, another revealed detail shows that both FRM and 23XI are facing expansion hold-ups.
Most know that NASCAR has to approve the sale and transfer of all Charters. Regardless, even though Front Row Motorsports purchased its SHR Charter in May, NASCAR has yet to approve its sale as well.
Page 13 of the lawsuit states:
“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.”
In regards to 23XI, page 12 states:
“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.”
It sounds like NASCAR held these transactions hostage until the two parties signed a new Agreement. Perhaps Trackhouse was in the same boat until they signed the new Charter Agreement.
Furthermore, SHR signed the new Agreement despite its imminent closure. This move affects not only 23XI and FRM but also SHR and its future successor, the Haas Factory Team.
While the two teams are filing an injunction to race their current, and perhaps these Charters in 2025, the consequences of this holdup are yet unknown.
NASCAR’s Next Gen Car has received much criticism in its three seasons of use. The car is built using parts from NASCAR’s chosen providers and is referred to by many as a “spec” car, as each one is extremely similar.
The introduction of this car was to make NASCAR’s business model more affordable for teams competing at the highest level. However, page six of the lawsuit reveals that not only is this process costly for teams, but they don’t even own the parts they buy for the new car.
“Teams are now required to shell out millions of dollars to purchase the car parts dictated by NASCAR, but they do not retain ownership of these parts and are forbidden from using the cars containing these parts in any other racing event.”
According to the lawsuit, the cost of the parts, which cannot be reused, totals $3 million per car. While perhaps cheaper than in the past, the lack of ownership of these parts gives teams little return on their investment.
As one X user and sheet metal collecter joked, his decorations might just be the property of NASCAR.
What do you think about all this? Let us know on Discord or X what your take is, and don’t forget you can also follow us on Instagram, Facebook, and YouTube.
