23XI and FRM Face NASCAR Charter Loss After Court Defeat

23XI Racing and Front Row Motorsports face the real possibility of losing their NASCAR Cup Series charters for the remainder of the 2025 season. This outcome follows a major ruling from the United States Court of Appeals in Richmond, Virginia.

The decision came after months of legal debate between NASCAR and the two teams, who currently each own three charters. A charter in NASCAR guarantees entry into every race, making it a critical asset for all competing teams.

The legal dispute began last year when both teams received a preliminary injunction in December, granting them permission to compete as chartered teams while challenging certain elements of the 2025 Charter Agreement. This deal required teams to agree not to sue NASCAR as a condition.

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Attorneys for 23XI and Front Row Motorsports claimed this rule had antitrust concerns, arguing it restricted team rights unfairly and could negatively impact team finances and stability.

On May 9, arguments from both parties were heard by the Court of Appeals. Counsel for the teams, Jeffrey Kessler, insisted that forcing 23XI and FRM to qualify as open teams would hurt their financial health and put sponsor relationships and driver contracts at risk.

However, the court’s final ruling on June 5 sided with NASCAR, finding no legal grounds to keep the teams’ injunction in place. The judges questioned whether the teams should benefit from the very agreement they were simultaneously challenging in court.

The removal of the injunction does not take effect immediately. Both teams have a short window of at least two weeks to seek another hearing.

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If they fail to overturn the decision, 23XI and FRM will need to compete as open teams. This means they would not be guaranteed a spot in each event, unlike teams with charters.

Racing as open teams can add financial pressure, reduce sponsor confidence, and force more uncertainty in driver lineups through the rest of the season.

Both organizations had recently expanded, buying one of their three charters each from the now-closed Stewart-Haas Racing. This expansion raised the stakes, as all six charters are now tied up in the ongoing litigation.

The court decision specifically mentioned that the teams failed to demonstrate a strong likelihood of winning their lawsuit, and that their antitrust arguments did not align with any established legal precedent.

If the ruling stands, 23XI Racing and Front Row Motorsports must now adapt to a new reality in the middle of a highly competitive NASCAR season. The trial date for the larger lawsuit is set for December 2025.

Until then, both teams and their partners await future court developments, knowing that a permanent loss of their charters could reshape their position in the sport, further complicating an already intense NASCAR Cup Series season.

Daniel Miller

Daniel Miller reports on Formula 1 Grand Prix weekends with race-day analysis, team-radio highlights, and point-standings updates. He explains power-unit upgrades, aerodynamic developments, and driver rivalries in straightforward, SEO-friendly language for a global F1 audience.