Last month, 23XI Racing and Front Row Motorsports filed another restraining order against NASCAR and requested a new preliminary injunction to restore their charter status. Late Monday night, NASCAR filed its response opposing the new injunction request.
In the 34-page document, NASCAR said that the injunction, if granted, would imminently harm it and the Cup Series, per Matt Weaver of The Sporting News. NASCAR has continued to argue that 23XI and FRM do not own their four original charters because they did not sign the charter extension agreement last September. Both teams also acquired an additional charter from Stewart-Haas Racing.
NASCAR claimed in the filing that “multiple interested parties have expressed interest” in acquiring the charters in question. Requests have come from existing teams, other racing teams and others, according to Bob Pockrass of FOX Sports.
Acquiring the charters in question requires a 30-day bidding process, which NASCAR said needs to start now because any new teams likely need to get started by Oct. 1 to prepare for the 2026 season. The teams officially lost their charter status last month, becoming open teams. NASCAR’s position is that the court cannot force them to be in a business relationship with parties they don’t want to.
“Unlike the Plaintiffs, many individuals and organizations, including the interested parties referenced above, view the 2025 Charters as a good investment and want to acquire them and work with NASCAR to further grow the Cup Series,” NASCAR commissioner Steve Phelps said in his written deposition.
“In fact, demand for Charters increased between 2022 and September 2024, the period of time that NASCAR and the Teams were negotiating over the Terms of the 2025 Charters.”
It’s getting ugly between NASCAR, 23XI/FRM
NASCAR argued once more that 23XI and FRM do not have a federal antitrust case. The sanctioning body stated it is not a monopoly because it allows teams to compete on the CARS Tour, the Late Model touring series owned by former Cup Series winner Dale Earnhardt Jr., Jeff Burton, Kevin Harvick and Trackhouse Racing owner Justin Marks.
NASCAR said it increased payouts to teams by 62% in the latest charter agreement. The sanctioning body claimed that it “pays a higher percentage of its operating income to Charter Teams than Formula 1 pays to its teams.” NASCAR said that Michael Jordan, who co-owns 23XI Racing, has made “reasonable” profits each year.
NASCAR also said that 23XI and FRM “ignore the pay raises,” and instead, focused on a text sent during negotiations that said, “an internal version of the May 2024 (charter agreement) draft contained ‘zero wins’ for Teams.” The sanctioning body said that was untrue because that specific draft increased payments for teams.
A hearing for the new injunction request is set for Aug. 28. The case goes to trial Dec. 1.
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