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Would 23XI and FRM Losing Their Charters Hurt NASCAR?

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What’s Happening?

23XI Racing and Front Row Motorsports are facing a major battle off the track, with NASCAR in the courtroom. The two are also facing the potential loss of both of their charters. While this would negatively affect these two teams, would it also negatively affect the sport of NASCAR?

The Battle So Far:

In the fallout of NASCAR’s Charter Agreement, 23XI and FRM were two of 15 teams to hold out on signing the Charter Agreement. Almost one month later, on Oct. 2, the two teams sued NASCAR on antitrust grounds.

When the two first held out on signing the agreement, fans worried about the implications of this move. The two appeared to be at risk of losing their charters. As the lawsuit continued to fall out, we learned two key details.

First, 23XI and FRM have filed a preliminary injunction to race as chartered teams under the 2025 agreement as the last suit goes forward. Second, we learned Wednesday in a response from NASCAR that the sanctioning body is planning on racing in 2025 without the teams’ combined four charters.

On Page 2 of NASCAR’s response, via a copy from SportsNaut:

“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 sentence clarifies that NASCAR will do this if the two teams do not get the injunction they need. While this seems to be the precedent for NASCAR, is it necessarily good for the sport?

A Race Minus Two Major Stars?

With the introduction of the NASCAR Charter System in 2016, NASCAR Cup Series fields shrank from 43 to 40 cars, with 36 automatic entries or charters owned by car owners.

The loss of a charter not only eliminates automatic entry for the two teams but also stops valuable revenue sharing with NASCAR. This money helps field cars by covering expenses, while automatic entry provides teams with their share of the purse.

Since the introduction, some races have had 36 to 38 cars entered. Without the money from charters, the two teams might miss or skip a far race. More realistically, at road courses and drafting tracks, the fields fill out with ease.

One particular race, the Daytona 500, sees frequent full fields.

Imagine a Daytona 500 without Tyler Reddick or Bubba Wallace and their major sponsors. What if the FRM are out front using their fast Superspeedway cars to hold down the front of the pack? What if Michael Jordan isn’t there? All those trending and memorable moments could go away for NASCAR and it’s fans.

Major drivers have missed the Daytona 500 in the past. A recent example was Daniel Suarez in 2020. As odd as it would be not to see a 23XI or FRM car at a major race, it would be unlikely to benefit NASCAR.

Will Everything Be Alright?

This year, both FRM and 23XI have entered open cars in races. Particularly, 23XI’s No. 50 and No. 67 entries have not missed a race in the past two seasons.

Of course, the two teams do not need charters to enter a race. Furthermore, the smaller fields are beneficial for opening cars, with some very slow cars making it into races in recent years, leaving little for the teams to worry about for a fruitless trip to a far-away race track.

While it would be a shock not to have four important and recognizable cars on track, the old tradition of the show must go on would ring true with or without these two teams.

It would be sad to see these four teams not on the track. If NASCAR has its way, this could be the reality fans face in 2025. But, if the teams get their injunction, this will be a forgotten topic of the past. It’s up to the courts to decide what the future of NASCAR is.

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Kauy Ostlien

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