23XI and FRM’s Lawsuit Injunction: What You Need to Know
What’s Happening? The next major step in the 23XI Racing and Front Row Motorsports’ lawsuit against NASCAR is a hearing for…
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23XI Racing and Front Row Motorsports had their hearing in their pursuit of a preliminary injunction. While this is a small step in the overall antitrust suit against NASCAR, the two teams have a lot on the line in this one hearing. While we await the result of this hearing, which will be in by Friday at the latest, let’s break down everything that is on the line for the two teams.
What’s Happening? The next major step in the 23XI Racing and Front Row Motorsports’ lawsuit against NASCAR is a hearing for…
The first and key part of this injunction is to save the team’s two charters. These are the lifeblood of the current NASCAR Cup Series Team. They allow teams to enter every NASCAR Cup Series points race automatically and provide them with supplemental income via revenue sharing with NASCAR.
Both teams own two charters a piece, and they are set to expire at the conclusion of the 2024 calendar year. This is due to their failure to sign the 2025 NASCAR Charter Agreement, the only two of 15 teams not to do so.
When they initially sued NASCAR, the two teams announced their plans to file a preliminary injunction to race as chartered cars throughout the Oct. 2 antitrust lawsuit. They filed for this injunction on Oct. 9.
NASCAR said in an Oct. 16 court filing that they plan on racing only 32 charters in 2025—four less than the normal 36—meaning that NASCAR expects the two teams’ pursuit of this preliminary injunction not to work out.
Failure to prove irreparable harm will result in the loss of these expensive charters and all the financial benefits that come with them.
Not only are the teams risking their four initial charters, but two new ones as well. In the initial Oct. 2 lawsuit, a shocking reveal was that 23XI agreed to purchase a new charter from Stewart Haas Racing. Furthermore, the lawsuit revealed that both 23XI and FRM’s new charters have yet to be approved by NASCAR.
While it was revealed on Oct. 23 that the two had yet to request a transfer approval from NASCAR, following Monday’s hearing, the team’s lawyer, Jeffery Kessler, revealed that “those transactions are planned to go forward,” meaning the teams expensive planned expansions will happen if their charters are approved.
If the teams do not get their injunction, these two charters are more than likely off the board for them. To own them, they would have to sign the 2025 Charter Agreement.
What’s Happening? As the offseason creeps closer, one NASCAR Xfinity Series Playoff driver has yet to announce his plans for 2025….
If 23XI and FRM do not get their injunction and lose their new Charters entirely, the rumored drivers of those cars will have to find new jobs. Unfortunately for them, the job market is slim.
First is Riley Herbst, the leading candidate for the third 23XI car. Herbst’s current ride is already full, with Sam Mayer announced for the car. There is a rumor that Herbst’s family helped pay for the new charter. This, plus his support from Monster, means that he has the financial backing to find another ride. However, due to the limited job market, perhaps that ride will not be the quality he is used to.
Next is Zane Smith, who continues to find his name tied to the third Front Row Motorsports car. Smith has improved tremendously on track since his early release from Trackhouse Racing. While a little less confirmed than the Herbst deal, Smith losing out on a Cup Series ride would be a shame for a driver who has continued to have bad luck this season.
Not only are the teams at risk of losing these drivers, but perhaps their current drivers. Yesterday, several insiders reported that in court, Kessler claimed that drivers and sponsors have outs in their contracts revolving around charter status.
Basically, if the team loses its charters, a driver like Tyler Reddick and some sponsors will have a way out of their deal with the team. This will hurt both teams financially with a loss of sponsorship. Also, 23XI losing a championship contender like Reddick would be a massive blow to the team’s long-term future.
A lot hangs in the balance of this judge’s decision; either way, the ruling will affect how this Silly Season goes. Perhaps this week will hold one of the most important days in NASCAR history.
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