The court denied 23XI Racing and Front Row Motorsports a full rehearing on the preliminary injunction, putting them at risk of losing their valuable NASCAR charters.
The ruling which could take effect as soon as the upcoming race at Dover Motor Speedway, marks the latest development in the ongoing antitrust lawsuit filed by the two teams against NASCAR.
Charters in NASCAR, akin to franchises in other major sports leagues, are the lifeblood of team operations. They guarantee a starting position in every Cup Series race and entitle teams to a significantly larger share of race purses compared to non-chartered, or “open,” teams.
Each charter represents not only competitive security but also immense financial value, with recent sales reportedly reaching $45 million per charter.
For 23XI Racing and Front Row Motorsports who collectively hold six NASCAR charters the stakes could not be higher. The potential loss of these charters represents a threat not only to their competitive standing but also to their financial stability and long-term viability in the sport.
The roots of this controversy trace back to the 2025 NASCAR season, when a new charter agreement was proposed. While most teams signed the agreement, 23XI Racing and Front Row Motorsports declined, citing concerns over a clause that prevented teams from pursuing legal action against NASCAR.
Instead, the two teams filed an antitrust lawsuit against NASCAR and its CEO, Jim France, alleging monopolistic practices and seeking more equitable terms for all teams.
The lawsuit marked a significant escalation in the ongoing debate over the power dynamics between NASCAR’s governing body and its teams, shining a spotlight on the business practices that have shaped the sport for decades.
Initially, the courts granted 23XI Racing and Front Row Motorsports a preliminary injunction, allowing them to continue operating as chartered teams while the lawsuit proceeded.
This injunction was seen as a lifeline, enabling the teams to maintain their competitive and financial standing during the legal battle. However, NASCAR appealed the decision, and a three-judge panel from the Fourth Circuit Court of Appeals ultimately overturned the injunction.
Following the appellate decision, 23XI Racing and Front Row Motorsports sought a full-court rehearing, hoping to overturn the panel’s ruling and preserve their charter status.
On July 9, 2025, the Fourth Circuit Court of Appeal denied this request, setting the stage for the teams to lose their NASCAR charters as early as the next race at Dover.
In a statement following the ruling, the teams’ lead attorney Jeffrey Kessler expressed disappointment but reaffirmed the teams’ commitment to fighting for fairer terms and greater competitive balance within the sport.
“We are disappointed by the Fourth Circuit Court of Appeals decision to deny our request for a full rehearing,” Kessler said. “This decision has no bearing on the strength of our antitrust case, which we look forward to presenting at trial.
“We are committed to racing this season as we continue to fight for more competitive and fair terms for all teams to ensure the future of the sport, and remain fully confident in our case.”
With the estimated value of each charter at $45 million, the combined potential loss for both teams could reach $270 million. This is not merely a paper loss; it represents real assets that underpin sponsorship deals, driver contracts, and the operational budgets that make competitive racing possible.
The uncertainty surrounding the redistribution of the forfeited charters and the associated prize money further complicates matters, with questions remaining about whether the funds will be immediately allocated to the remaining 30 charter teams or held in escrow pending the outcome of the lawsuit.
However, the legal battle is far from over as the antitrust lawsuit is scheduled to go to trial on December 1, 2025.
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