23XI Racing and Front Row Motorsports have encountered a significant challenge in their attempt to secure a place in NASCAR’s charter system, as NASCAR has appealed a court’s decision that initially approved the teams’ request for a preliminary injunction. The lawsuit, filed by 23XI Racing and Front Row Motorsports, accuses NASCAR of engaging in monopolistic practices, particularly focusing on the charter system that was introduced in 2016. This system ensures that certain teams have guaranteed entry into races, providing them with financial stability.
The dispute began after negotiations over the 2025 agreements between the teams and NASCAR broke down, leading the teams to file the legal action on October 2, 2024, in the Western District of North Carolina. In the lawsuit, the teams claim that NASCAR and its CEO, Jim France, have exploited the charter system for their own financial gain, undermining competitive fairness.
Central to the lawsuit is the preliminary injunction granted by the court, which would allow the teams to acquire charters from Stewart-Haas Racing, enabling them to compete as chartered teams in the 2025 season. However, NASCAR has filed an emergency appeal to prevent the injunction from taking effect, arguing that it could have severe consequences for the organization. In its emergency motion, NASCAR stated that the injunction would effectively force the league into a long-term contractual relationship with the teams, spanning anywhere from seven to fourteen years, which it argues would be detrimental.
NASCAR’s appeal highlights the concern that the injunction could disrupt its operational control over the charter system and hinder its ability to implement future changes to the league. One of NASCAR’s main goals is to reduce the number of chartered teams from 36 to 32 by the 2025 season.
The legal proceedings are being handled by U.S. District Court Judge Bell, who has indicated that the case should be resolved before the start of the 2025 season, unless the dispute is settled beforehand. Judge Bell also mentioned that if a settlement is not reached, the case would proceed to trial ahead of the 2026 NASCAR race season. To allow for a fair process, the judge set a deadline for 23XI Racing and Front Row Motorsports to respond to NASCAR’s appeal motion by 10:00 a.m. on December 23, 2024, with no further replies allowed from NASCAR.
