NASCAR Ford team Front Row Motorsports (FRM) and Toyota outfit 23XI Racing teamed up to sue the sanctioning body over what they felt was an unfair charter agreement. It’s not looking good for FRM and 23XI, and the two Cup Series teams could be forced to race without charters in 2025 now that a federal judge has denied the teams’ motion in the ongoing antitrust lawsuit.
According to a report from the Associated Press, the motion was signed by federal Judge Frank Whitney of the U.S. District Court of Western North Carolina in Charlotte on Friday, November 8th. Ironically, NASCAR executives were presenting the 2024 State of the Sport address at Phoenix Raceway at the time the motion was being signed. The court decision was reached just hours before FRM and 23XI hit the track for practice ahead of the season-ending race at Phoenix.
Jeffrey Kessler, the antitrust attorney handling the case for NASCAR Ford team FRM and 23XI, stated that the plaintiffs will be able to immediately appeal the ruling, saying, “Although we are disappointed that the preliminary injunction was denied without prejudice and as premature, which we intend to appeal, this denial has no bearing on the merits of our case. My clients will move forward to race in 2025 and fight for a more fair and equitable system in NASCAR that complies with antitrust laws.”
FRM and 23XI allege that if NASCAR elects to revoke their charters for 2025, the teams could lose sponsors if they’re unable to compete in all races next year. As a reminder, the charter system ensures that participating teams have a guaranteed spot on the grid. If the charters are revoked, then FRM and 23XI could fail to qualify for certain races throughout the year, especially with tough competition. They could continue to race as “open teams,” but run the risk of substantial loss of revenue.
“Although plaintiffs allege they are on the brink of irreparable harm, the 2025 racing season is months away – the stock cars remain in the garage,” the judge said. “Plaintiffs have not alleged that their business cannot survive without a preliminary injunction. Instead, they allege that their businesses may not survive without a preliminary injunction.”
Comment
The story and the headline are misleading. The existing charters all expire at the end of this year. 23XI and FRM are refusing to sign the 2025 charters and are suing NASCAR for perceived anti-trust violations. A judge has allowed both teams to continue in 2025 as ‘open’ teams meaning they must qualify for each race and are not guaranteed a spot in every race. They will also receive less money than the charter teams.