23XI, Front Row suffer loss in case vs. NASCAR, charter loss countdown heightens worries

The U.S. Court of Appeals for the Fourth Circuit has denied 23XI Racing and Front Row Motorsports’ request to rehear their case after a three-judge panel overturned the preliminary injunction which granted charter status to the teams throughout the duration of their lawsuit against NASCAR, Jeff Gluck of The Athletic reported Wednesday. The Court of Appeals vacated the preliminary injunction June 5.

There was a 14-day window for the teams to ask the case to be heard by the entire panel of judges at the Court of Appeals. 23XI and Front Row filed their petition June 20. As a result of the latest decision, 23XI and Front Row could potentially lose their charter status effective for the July 20 Cup Series race at Dover Motor Speedway.

If the teams lose their charter status, they will run as open teams. Chartered teams are guaranteed a spot on the grid each week. Open teams must qualify on speed. Whereas chartered teams receive a portion of the revenue from NASCAR’s multi-billion-dollar media rights deal, open teams do not. Regardless of finish, open teams earn far less money.

Furthermore, loss of charter status would compromise and void contracts with sponsors and drivers. Jeffrey Kessler, attorney for 23XI and Front Row, said last month that if the ruling was upheld, it “would set a dangerous precedent, allowing monopolists to shield themselves from legal challenges simply by requiring release language as a condition of doing business with the monopoly.”

Federal judge concerned for 23XI, FRM and NASCAR amid heated lawsuit

23XI and Front Row filed their antitrust lawsuit against NASCAR and its CEO Jim France Oct. 2, 2024. The antitrust lawsuit was filed after 23XI and Front Row opted not to sign NASCAR’s final charter proposal last September at Atlanta Motor Speedway. Teams negotiated an extension of the original 2016 Charter Agreement for two years ahead of its Dec. 31 expiration.

23XI and Front Row were the two holdouts among the 15 Cup teams. The final offer included a nearly 50 percent increase that teams earned from NASCAR’s record $1.1 billion per year television deal that went into effect in 2025 and also runs through 2031. Judge Ken Bell of North Carolina’s Western District urged both sides to settle before the case goes to trial Dec. 1.

“It’s hard to picture a winner if this goes to the flag — in this case,” Bell said June 18. “It scares me to death to think about what all this is costing.”