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NASCAR responded to 23XI Racing and Front Row Motorsport’s request for an injunction and expedited discovery. This 22-page response was full of details, both small and large. Here are three notable things from NASCAR’s Oct. 16 response to 23XI and FRM.
What’s Happening? A lingering storyline of the 2024 NASCAR Cup Series season is ratifying a new Charter Agreement. However, it sounded…
When 23XI and FRM denied the final offer of NASCAR’s 2025 Charter Agreement, most assumed that this was the end of the negotiations.
On pages six and seven of NASCAR’s response, via a copy from SportsNaut:
“Although Plaintiffs’ Motion for a Preliminary Injunction and press commentary both speak of a midnight deadline on September 6, 2024, NASCAR continued to engage with 23XI and Front Row regarding their purported concerns, pointed out that NASCAR and the Teams had reached a mutually acceptable resolution on the majority of them, and extended both teams’ time to sign the agreements to allow Front Row until September 17 and 23XI until September 20.”
These two dates, Sept. 17 and Sept. 20, would have led up to the Bristol Night Race, the week after NASCAR requested to meet with 23XI on Sept. 13 via letters sent between the two parties.
Most fans thought that this was the end of negotiations because NASCAR’s final offer was considered to be the end of the road, with teams allegedly feeling pressured into signing the final agreement. However, NASCAR was willing to work this out deep into the month of September.
What’s Happening? In the latest development in the 23XI Racing and Front Row Motorsports Lawsuit, it appears that NASCAR is ready…
We have already covered this in-depth, as have most parties, but its importance cannot be lost. When 23XI/FRM held out on the 2025 charter Agreement, they feared they would lose their charters by not signing.
NASCAR’s response confirmed most fans fears about the holdout on Page 2:
“The deadline for Plaintiffs to sign 2025 Charter Agreements expired weeks ago, and NASCAR has taken steps, consistent with its contractual obligations to other Charter Teams, to plan for a season with only 32 Charters.”
This is the apocalyptic scenario that will happen if the two do not get their injunction. However, both teams made it clear they will race in 2025, chartered or unchartered.
The first major question stemming from this statement is what will happen to the team’s four charters. These charters cost millions of dollars, and NASCAR redistributing them will set a significant precedent as to what exactly will happen when a team loses its charters.
The value of these charters stem from the benefits that come with owning them. Thanks to NASCAR’s response, we now know what NASCAR plans to do with these financial benefits if 23XI and FRM don’t get their injunction.
What’s Happening? 23XI and Front Row Motorsports face an uncertain future with their upcoming Nov. 4 injunction hearing. This preliminary injunction…
When a team buys a NASCAR Charter, it receives financial benefits. For each charter-owned, teams are guaranteed entry into every NASCAR Cup Series points-paying race. This means these teams get their portion of that race weekend’s purse. Most importantly, chartered teams receive substantial revenue sharing with NASCAR and its tracks.
This money helps pay the bills for NASCAR’s teams. According to the lawsuit, the cost of running one car is “approximately $18 million per year.” Without their charters, 23XI and FRM will be without this money and run as “open” cars. However, what will happen to this money if the two do not earn their injunction?
Via page 2 of NASCAR’s response:
“NASCAR carries contractual obligations to the 13 teams that accepted its offers of 2025 Charters, and consistent with the terms of the 2025 Charters, NASCAR is working on reallocating funds that Plaintiffs would have received to increase prize money and other special awards for the 2025 season for the benefit of teams that timely executed 2025 Charters, as well as Open teams who can compete to win the increased prize money and other special awards.”
This was a major question following the holdout, and now we have our answer. Rather than holding on to it, as some speculated, NASCAR will almost be rewarding those who signed with more money in the event that the plaintiffs do not get their injunction.
NASCAR set many precedents for teams that lose their charters in this response. As this lawsuit goes forward, perhaps we will learn more about what happens when a team loses a charter, even if 23XI/FRM gets their injunction.
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