
NASCAR drivers Bubba Wallace and Tyler Reddick have become central figures as 23XI Racing’s legal dispute with NASCAR approaches a critical point, casting doubt on the team’s future in the Cup Series. The controversy revolves around the team’s refusal to sign a new charter agreement, potentially threatening the status of its drivers due to contractual exit clauses.
23XI Racing, co-owned by Michael Jordan and Denny Hamlin, partnered with Front Row Motorsports following their rejection of NASCAR’s charter terms. However, a federal judge denied their request to continue competing under their current charters, creating the risk of losing their charter rights as soon as the upcoming race in Dover.
Implications of Possible Charter Loss on Drivers’ Contracts
If 23XI Racing proceeds with the lawsuit, both Wallace and Reddick could become free agents under their contracts, which feature exit clauses allowing them to leave the team should the charter disappear. This situation has generated speculation about their availability to rival teams.
However, NASCAR has attempted to dispel fears of mid-season driver departures.
“There is no credible risk or even threat that any of the Plaintiffs’ drivers will leave mid-season, let alone over the next two weeks. None of their evidence even makes that claim,” NASCAR said in a statement.
Contracts Grant Reddick and Wallace Potential Options Amid Uncertainty
Details from The Athletic highlight that Tyler Reddick’s contract permits him to seek opportunities elsewhere if his team is unable to provide him with a chartered car. Bubba Wallace holds a similar contractual protection, tying both drivers’ futures to the outcome of the charter dispute.

Despite this, close relationships with owners Hamlin and Jordan, alongside the team’s rapid growth, may encourage both drivers to remain committed even under challenging circumstances.
Expert Insight on Reddick’s Prospects and Market Interest
NASCAR insider Jordan Bianchi weighed in on the ongoing situation, noting the team’s precarious position and the potential ripple effects across the sport. With a possible charter loss, Reddick could become one of the most sought-after drivers during the season.
“There are numerous teams in the garage who have looked at this situation and said, ‘We would love to have Tyler Reddick in our race car’. Do I think anything will happen in the middle of the season? I do not. For a lot of reasons, I don’t think you would expect to see anything midseason. There are too many hoops to hop through; it gets messy and complicated,” Bianchi said via the Teardown podcast.
Currently ranked fourth in the NASCAR Cup Series standings, Reddick has yet to secure a race win that would guarantee his playoff spot. His performance at Dover this weekend will be especially important amid this uncertain situation.
The Stakes and What’s Next for 23XI Racing and Its Drivers
The outcome of the charter lawsuit will have significant implications not only for 23XI Racing’s participation in the Cup Series but also for the stability of its driver lineup. The presence of exit clauses for Bubba Wallace and Tyler Reddick underscores how legal battles in motorsports can directly impact team rosters and driver movement.
As the Dover race approaches, the racing community remains watchful, knowing that the developments may influence driver availability and team dynamics well beyond this season.