23XI Racing and Front Row Motorsports initiated an antitrust lawsuit against NASCAR after both teams declined to sign the updated charter agreement. This dispute centers on the ownership and future of their NASCAR charters, with NASCAR aiming to sell those charters by October 31.
The lawsuit has brought new court filings from NASCAR, asserting that they do not hold a stock car racing monopoly, pointing to competition from the CARS Tour, which hosts asphalt late model races. NASCAR emphasized exceptions in the charter agreements that allow team owners to participate in other racing series with NASCAR’s approval.
In addition to the long list of exceptions, which include every major known racing organization and sanctioning body in North America, the Goodwill Provisions in the 2016 and 2025 Charters also allow Team Owners to seek NASCAR’s approval to race in other series.
—NASCAR legal filing
NASCAR has never withheld approval from any Charter holder (including direct and indirect Team Owners, as defined by the 2016 and 2025 Charters) to race in any other stock car series or any other racing series.
—NASCAR legal filing
NASCAR’s Plans to Sell Charters and Court Decisions Pending
23XI Racing and Front Row Motorsports have requested the court to reinstate their charter statuses, but a ruling has yet to be issued. Meanwhile, NASCAR is petitioning the court to permit selling these charters by October 31 and to require the teams to return earnings from their charter status for the early part of the 2025 season.
NASCAR maintains that it cannot be forced to do business with teams unwilling to comply with charter terms and argues that 23XI and Front Row Motorsports lack legal rights to the charters as they never agreed to the new contracts, thus forfeiting their positions.
The trial, scheduled for December 1, is expected to last two to three weeks, occurring just a few months before the 2026 NASCAR season. This timeline leaves a limited window for redistributing the charters to eligible teams, which has spurred concern about disruption within the sport.
The sanctioning body notes there is significant interest from other teams in acquiring the charters previously held by 23XI Racing and Front Row Motorsports.
Financial Comparisons and Charter Value Highlighted by NASCAR
NASCAR highlighted that it pays a higher percentage of operating income to its charter teams compared to what Formula One distributes to its teams. The introduction of the 2016 charter system raised annual payments to teams by an average of 28 percent over prior compensation, and the latest agreement for 2025-2031 promises a further 62 percent increase in those payments.
Denny Hamlin Criticizes NASCAR’s Schedule Release Amid Lawsuit
Denny Hamlin, a co-owner of 23XI Racing, accused NASCAR of releasing the 2026 schedule to divert attention from the ongoing legal dispute surrounding the charters. Hamlin articulated his viewpoint on social media platform X, expressing frustration with the timing of the schedule announcement.
This is where a schedule would come out to divert your attention.
—Denny Hamlin, 23XI Racing co-owner
23XI Racing’s current driver lineup includes Bubba Wallace in the No. 23 car, Tyler Reddick driving the No. 45, and Riley Herbst in the No. 35 vehicle. Front Row Motorsports competes with Noah Gragson (No. 4), Todd Gilliland (No. 34), and Zane Smith (No. 38) behind the wheel.
Context of NASCAR Commissioner and Future Outlook
While NASCAR’s commissioner has addressed the antitrust lawsuit, the legal process continues to generate tension among teams, owners, and fans alike. The outcome of this lawsuit may redefine the structure and control over charter agreements, impacting team operations and the competitive environment in NASCAR.
The timing of the upcoming trial and potential redistribution of charters could reshape team compositions heading into the 2026 season, creating uncertainty for drivers and organizations across the sport.