23XI Racing and Front Row Motorsports are currently engaged in an antitrust lawsuit against NASCAR after both teams chose not to sign the new charter agreement preceding the legal action. These teams face potential loss of their charters as NASCAR moves forward with plans related to the dispute. The focus on this lawsuit highlights significant tension in the sport’s management and charter system ahead of the 2026 racing season.
NASCAR recently filed court documents arguing that it does not hold a monopoly over stock car racing, citing other competitive series such as the CARS Tour, an asphalt late model racing division. The sanctioning body emphasized that its charter arrangements include allowances for team owners to participate in other racing series, maintaining they have not restricted any charter holder’s ability to race elsewhere.
“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 court 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 court filing
Impending Sale of Charters Spurs Court Requests and Racing Season Concerns
Both 23XI Racing and Front Row Motorsports have petitioned the court to reinstate their charter statuses, but a decision is still pending. Meanwhile, NASCAR is pushing the courts to permit the sale of the charters formerly owned by these teams by October 31st. Additionally, NASCAR aims to reclaim earnings the teams received for participating as charter holders during the early part of the 2025 season.
NASCAR’s position is firm in asserting they are not legally obligated to continue business relations with teams that decline to accept their charter terms. The organization highlighted that significant interest exists from other parties wishing to acquire these available charters.
With the lawsuit trial scheduled to begin December 1, the timing poses challenges for the redistribution of charters before the 2026 racing season. If the trial lasts several weeks, the new allocations would have little time to prepare for the upcoming season, underscoring the urgency of the court’s decisions.
NASCAR is seeking to prevent an injunction that would block the sale of these charters, maintaining that 23XI Racing and Front Row Motorsports forfeited their rights by failing to agree to the new terms.
NASCAR Details Financial Support to Charter Teams Amid Lawsuit
In its court presentations, NASCAR has drawn attention to the financial benefits provided to charter teams. They noted a higher share of operating income paid to these teams compared to the payouts Formula One offers its competing teams. The initial 2016 charter agreement increased team payments by an average of 28% compared to the period before charters existed. Furthermore, NASCAR claims that the forthcoming 2025-2031 charter period will bring a further 62% rise in those payments.
Denny Hamlin Voices Frustration Over Timing of Schedule Release
Denny Hamlin, co-owner of 23XI Racing, expressed skepticism about NASCAR’s decision to release the 2026 racing schedule amidst the ongoing legal conflict. Hamlin suggested this move was designed to distract from the courthouse battles his team is involved in.
“This is where a schedule would come out to divert your attention.”
— Denny Hamlin, 23XI Racing co-owner
Current Driver Rosters for 23XI Racing and Front Row Motorsports
The driver lineup for 23XI Racing includes Bubba Wallace in the No. 23 car, Tyler Reddick racing the No. 45, and Riley Herbst piloting the No. 35 vehicle. Front Row Motorsports fields Noah Gragson in the No. 4 car, Todd Gilliland in the No. 34, and Zane Smith driving the No. 38.
Significance of the Lawsuit and Future Implications for NASCAR
The resolution of this legal dispute will have lasting effects on how NASCAR manages charters and team relations moving forward. With a trial date approaching quickly, the timing presents logistical and operational challenges for all parties involved. The potential loss or redistribution of charters could reshape the competitive landscape of the upcoming seasons and redefine the balance of power within stock car racing.
