What Happened?
Thursday, court documents filed by 23XI Racing and Front Row Motorsports featured a sworn affidavit from former Stewart Haas racing president Joe Custer. So what does Custer have to do with this dispute, and how did he get involved?
Michael Jordan’s 23XI vs NASCAR: The Complete Timeline
What’s Happening? The 23XI Racing and Front Row Motorsports lawsuit will continue for some time. However, many developments will occur along…
Charters for Sale? Sold? In Waiting?
In early May, long-time NASCAR team Stewart Haas-Racing announced its forthcoming closure following the 2024 NASCAR Cup Series season. As part of its closure, the team distributed three of their four Charters to the open market for sale. FRM announced their purchase in early 2024, but this story did not pick up until FRM and 23XI filed their initial lawsuit against NASCAR.
To the shock of insiders and fans, the initial lawsuit contained a line that stated 23XI had, in fact, agreed to purchase the final SHR Charter. Furthermore, and much more shockingly, both FRM and 23XI’s Charters had yet to be approved by NASCAR, meaning the teams technically did not own them.
As the lawsuit continued, these SHR Charters went from a side storyline to a key aspect of the team’s defense. On Oct. 9, the two teams motioned for a preliminary injunction to allow them to enter their current four Charters and, with a completed purchase, each of their new Charters in the 2025 NASCAR season as the lawsuit unfolded.
As these Charters became a more prominent story, they further bled into the filings of the two teams. On Oct. 16, NASCAR expressed its plans to field 32 of the 36 Charters in 2025. This 36-charter field would have included the two SHR Charters; however, who would field them was unknown.
In the past, SHR President Joe Custer claimed that even if the Charters were unsold, he didn’t expect the new Haas Factory Team to field these cars.
Unfortunately for 23XI and FRM, NASCAR made its plans clear on Dec. 2 when it filed its response to the lawsuit, indicating NASCAR would not transfer these Charters to the two teams.
This storyline leads into this week’s filing, which featured an affidavit from Custer.
Custer’s Claims
FRM and SHR Executives Claim NASCAR Was Going To Transfer New Charters
What’s Happening? In a new filing as part of an ongoing preliminary injunction motion, two individuals—Front Row Motorsports General Manager, Jerry…
In Thursday’s filing, 23XI and FRM focused on these two Charters in particular to prove irreparable harm, which is what they need to win their re-filed preliminary injunction.
First, FRM General Manager Jerry Freeze claimed that NASCAR President Steve Phelps told him their transfer would go through in September. The filing claims that NASCAR is “changing course” on the FRM transfer and “is insisting that we [FRM] drop the lawsuit and antitrust claims against it as a condition of being approved.”
Most importantly, this filing contained Custer’s affidavit stating that NASCAR told him they would transfer these Charters.
“NASCAR officials conveyed to me on more than one occasion that once the Buyers submitted their Transfer Approval Forms and signed their respective Joinder Agreements, NASCAR would promptly provide the necessary approvals to transfer the Charter Agreements to the Buyers.” – Joe Custer
Custer further clarified that what remains of SHR will suffer irreparable harm if they do not sell these Charters. As what remains of SHR does not have the means to enter these cars in 2025, Custer stated, “Stewart-Haas Racing, LLC will suffer irreparable harm because Stewart-Haas Racing, LLC does not have the personnel or resources to operate pursuant to the Charters.”
What Do The Four Parties Want?
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Of the four parties involved in this Charter transfer, it’s very clear who stands where.
23XI and FRM absolutely want their Charters transferred to them. As of now, 23XI has already announced an expansion for Riley Herbst in 2025, with or without a Charter. Furthermore, most expect FRM to field their third car next season, with or without a Charter.
The loss of these Charters could financially harm the plaintiffs, 23XI and FRM, as 23XI, at least, has already invested in these third cars by gathering the necessary driver, staff, and equipment.
How Many Will Cars Front Row Motorsports Field in 2025?
What’s Happening? Front Row Motorsports and 23XI Racing are currently fighting for their four Charters in court with NASCAR. We know…
As awkward as it is for the former SHR to be involved in this as they signed the 2025 NASCAR Charter Agreement, it appears that they absolutely want these teams to acquire these Charters, as Custer claims it would irreparably harm the remnants of the team.
NASCAR has already indicated they do not want these teams to receive these Charters and stated in their Dec. 2 filing that they believe “Plaintiffs’ Complaint reflects nothing more than dissatisfaction with business negotiations that didn’t go their way.”
It is unknown what will happen if the two teams do not win their preliminary injunction. There could be buyers on the market. However, that market could be slim this close to the start of the 2025 season. By all means, the story of these charters is just now picking up.
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