23XI Racing and Front Row Motorsports achieved a significant win over NASCAR in federal court on Wednesday.
Judge Kenneth Bell ruled in favor of the teams’ request for a preliminary injunction to race as chartered teams in 2025. This ruling in a North Carolina federal court allows the two teams to race with the benefits of a chartered team and complete their purchases of charters from Stewart-Haas Racing. NASCAR has the option to appeal the decision.
The lawsuit was filed by the two teams in October, as they were the only ones to not sign the new charter agreement with NASCAR. The previous charter agreement expired at the end of the 2024 season.
“The Court hereby enters a limited preliminary injunction only for the duration of the 2025 NASCAR Cup season as follows: defendants and their agents, servants, employees, attorneys, and all persons in active concert or participation with Defendants, must allow Plaintiffs to each enter two race cars in all NASCAR Cup races under the 2025 Charter Agreement terms applicable to all charter teams, with the exception that the ‘release’ language in Section 10.3 of the 2025 Charter Agreement shall not be enforceable to the extent that it would release or bar Plaintiffs’ claims in this action,” the ruling states. “Further, NASCAR is preliminarily enjoined from refusing to approve Plaintiffs’ purchases of two Stewart-Haas Racing, LLC charters, which Plaintiffs will be entitled to use in all 2025 NASCAR Cup races on the same terms as other charter teams, again with the exception of the application of the release language to Plantiffs’ claims in this action; and a Case Management schedule will be set by the Court which, in the absence of a voluntary resolution of this dispute among the Parties, provides for a trial on Plaintiffs’ claims to be concluded in advance of the beginning of the 2026 NASCAR race season.”
Both 23XI and Front Row ran as two-car teams in 2024. 23XI, co-owned by Michael Jordan and NASCAR Cup Series driver Denny Hamlin, had cars for Bubba Wallace and Tyler Reddick, while Front Row fielded drivers Michael McDowell and Todd Gilliland. With the closure of four-car Stewart Haas Racing, each team agreed to purchase a charter from SHR to expand to three cars and drivers in 2025.
Hamlin expressed his excitement on social media following the ruling.
Front Row is planning to add a third car for Zane Smith in 2025, replacing McDowell with Noah Gragson. 23XI Racing has announced that Riley Herbst will drive a third car for the team.
“We welcome today’s decision by Judge Bell granting a preliminary injunction in our favor,” the teams’ attorney Jeffrey Kessler said in a statement. “The court’s ruling allows 23XI and Front Row Motorsports to race existing cars as chartered teams in next year’s Cup Series. The decision also requires NASCAR to approve both teams’ purchases of a third charter from Stewart-Haas Racing and allow these cars to also race as chartered teams in the 2025 season. We are confident in the strength of our case and will continue to fight so that racing can thrive and become a more competitive and fair sport in ways that benefit teams, drivers, sponsors, and, most importantly, our fans.”
Charter teams receive a larger share of purse money from NASCAR and the charters guarantee a car entry into every race on the Cup Series calendar. 23XI and FRM would have competed as open teams in 2025 if the injunction had not been granted, but they would not have been guaranteed three spots in the Daytona 500 if more than 40 cars attempted to race.