23XI, Front Row file new injunction as NASCAR mulls selling charters

23XI Racing and Front Row Motorsports are seeking a restraining order and new preliminary injunction to maintain their charter status days before an appeals court decision had them scheduled to lose it.

In court documents filed on Monday, the teams stated that losing their charter status would cause ‘irreparable harm’ and that NASCAR has ‘signaled its intention to immediately move or sell (their) charters to other entities — putting us in irreparable jeopardy of never getting their charters back and going out of business.’

NASCAR’s position is that they have owned four of those charters since January since 23XI and Front Row didn’t sign the charter extension agreement. The two charters each team purchased from Stewart-Haas Racing are a more complicated matter.

Either way, NASCAR also views this just a stall tactic for 23XI and Front Row to continue participating in the program and receive money from it while suing the

“It is unfortunate that instead of respecting the clear rulings of the Fourth Circuit, 23XI Racing and Front Row Motorsports are now burdening the District Court with a third motion for another unnecessary and inappropriate preliminary injunction.

“As both the Fourth Circuit and the District Court suggested, NASCAR has made multiple requests to 23XI Racing and Front Row Motorsports to present a proposal to resolve this litigation. We have yet to receive a proposal from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit.

“We will defend NASCAR’s integrity from this baseless lawsuit forced upon the sport that threatens to divide the stakeholders committed to serving race fans everywhere. We remain focused on collaborating with the 13 race teams that signed the 2025 charter agreements and share our mutual goal of delivering the best racing in the world each week, including this weekend in Dover.”

In the earliest weeks of the federal antitrust lawsuit, the two teams sought an order from the court for NASCAR to recognize the teams as ‘chartered’ despite both not signing an extension of the agreement that was the source of the legal conflict.

Read more: Why two Cup teams and NASCAR are suing each other

Judge Kenneth D. Bell, the presiding judge over the case in the Western District of North Carolina, ultimately ruled in favor of 23XI and Front Row after the teams showed ‘imminent harm’ and ‘a likelihood of success’ regarding the suit.

Specifically, the teams argued they could not pursue legal action and participate in the charter agreement due to a clause in the document that prevented participating teams from suing NASCAR. The two teams also provided evidence of opt-out clauses in driver and sponsorship contracts that could be executed if the two teams did not have chartered status.

The teams also successfully argued that the protective injunction would preserve the status quo of the moment legal proceedings began.

Read more: What is NASCAR's charter system and how it works

NASCAR appealed that decision from the Western District to the Fourth Circuit in Richmond, Virginia and a three-judge panel ruled against the teams -- using an argument that 23XI and Front Row could not ‘have their cake and eat it’ when it comes to wanting to sue over the charter agreement while also wanting the benefits.

Charter status entitles teams to guaranteed revenue through TV money and other programs. Teams can race without charters but they are at risk of failing to qualify if there is more than a full field and such ‘open teams’ earn less than a third of the money they would earn as a chartered team. 

Due to the decision issued by the Fourth Circuit this week, the two teams and their six combined cars would be at risk of losing their chartered status by this weekend at Dover International Speedway.

As a result, 23XI and Front Row Motorsports have filed this new injunction request, under the insistence that it has new information.

The teams have stated in their filing that they have brought “this new motion for a temporary restraining order and preliminary injunction to protect the status quo and prevent the irreparable harm that will result if (they) lose their charter rights or are forced to unwind their charter purchases before trial (Dec. 1).

“While the Fourth Circuit has vacated the prior preliminary injunction, and the mandate is scheduled to be issued on July 16, the Fourth Circuit’s decision was based on the narrow holding that NASCAR’s release in the 2025 Charter Agreement is not, standing alone, exclusionary conduct in violation of Section 2 of the Sherman Act. The Fourth Circuit expressly did not consider NASCAR’s other exclusionary acts that … clearly establish that (23XI and Front Row) are likely to prevail at trial.”

NASCAR is openly fielding calls from interested parties in these four charters, because they again believe they have ownership of the charters due to 23XI and Front Row not signing an extension.

The Sanctioning Body also wants the court to unwind the purchases of the two SHR charters.

“As the Court has already found, it is not economically viable for a team to participate in the Cup Series on a long-term basis racing under an ‘open’ agreement. Moreover, if Plaintiffs are forced to relinquish their charters before trial, they once again will face the prospect of losing key sponsors and star drivers, who will have the right to terminate their contracts and have already signaled their intention to pursue driving opportunities with other teams.”

So as a result, the teams are arguing that the court recognizing that 23XI and Front Row do not have charters in the midst of a case they believe they could win on the merits is a potentially catastrophic outcome.

That’s especially true for NASCAR entertaining offers to sell those charters.

“Moreover, if Plaintiffs lose their charter rights now, they may never be able to get them back. After the Fourth Circuit’s decision vacating the preliminary injunction, NASCAR’s counsel sent a letter to Plaintiffs on June 25, 2025, stating that NASCAR intended to “immediately undertake a process” to sell or unwind the 23XI and Front Row charters that Plaintiffs purchased from Stewart-Haas Racing. … NASCAR stated that it is “aware of interest from multiple prospective buyers for Charters.

“These potential buyers would also be a threat to obtain Plaintiffs’ other charter rights if Plaintiffs are forced to relinquish them, putting Plaintiffs’ entire future business at risk—as they cannot race as open teams on a long-term basis.”

Ultimately, NASCAR believes this is 23XI and Front Row asking for the same injunction request three times.

The two teams were set to lose their charter status by Wednesday and NASCAR is hoping the district court (Judge Bell) makes a ruling on this new injunction. If the court denies this ask, NASCAR’s view will be that the two teams will have to enter all six of their respective cars as open.