23XI Racing and Front Row Motorsports’s attempt to secure a foothold in NASCAR’s charter system has hit a roadblock as NASCAR appeals a court ruling which approved the preliminary injunction request from the teams.
The lawsuit, initiated by 23XI Racing and Front Row Motorsports, targets what they refer to as monopolistic practices by NASCAR, specifically focusing on NASCAR’s charter system, implemented in 2016, which guarantees teams a spot in races and promises financial stability.
The controversy began after negotiations over the 2025 agreements failed, prompting the teams to file their legal dispute on October 2, 2024, in the Western District of North Carolina. This action was taken against NASCAR and its CEO, Jim France, accusing them of using the charter system to enrich themselves at the expense of competitive fairness.
At the heart of the lawsuit is a preliminary injunction that was granted, allowing the teams the ability to acquire charters from Stewart-Haas Racing to compete in the 2025 season as chartered teams.
Tyler Reddick, driver of the #45 The Beast Unleashed Toyota, Carson Hocevar, driver of the #77 Delaware Life Chevrolet, and Ross Chastain, driver of the #1 Busch Light Chevrolet, race during the NASCAR Cup Series… Tyler Reddick, driver of the #45 The Beast Unleashed Toyota, Carson Hocevar, driver of the #77 Delaware Life Chevrolet, and Ross Chastain, driver of the #1 Busch Light Chevrolet, race during the NASCAR Cup Series Championship Race at Phoenix Raceway on November 10, 2024 in Avondale, Arizona. NASCAR files appeal in legal battle with 23XI Racing and Front Row Motorsports. More James Gilbert/Getty Images
However, NASCAR has responded by filing an emergency appeal to stay this injunction, citing severe consequences. In NASCAR’s emergency motion, the organization argued that the injunction would bind them into a lasting contractual relationship, stating: