Teams Suing NASCAR Seek Charter Protection Pending Lawsuit Resolution
On Friday, NASCAR filed a legal motion regarding whether a request by 23XI Racing and Front Row Motorsports (FRM) to compel the transfer of a purchased Stewart-Haas Racing (SHR) charter should be dismissed as a procedural matter. This request is part of the broader antitrust lawsuit filed by the teams against NASCAR following years of negotiations over the renewal of the charter agreement that governs the economics of the Cup Series.
Key Issue: Temporary Charter Protection
The Western District of North Carolina must decide if NASCAR should temporarily grant charter status to 23XI and FRM while the lawsuit proceeds. The controversy involves two SHR charters purchased by the teams. NASCAR is withholding approval for these transfers, arguing that the terms agreed upon by previous owners of the charters do not apply to teams suing the sanctioning body.
NASCAR has already planned for the 2025 season to feature 32 chartered and eight open entries, but the four charters tied to 23XI and FRM remain unresolved. The two SHR charters in question were sold under agreements made earlier this year. In April, FRM secured a deal to acquire one of the charters.
Stewart-Haas Racing’s Concerns
In an affidavit, Joe Custer, president of SHR, emphasized the team’s inability to field additional cars. He warned of “irreparable harm” if forced to do so.
“Stewart-Haas Racing, LLC has sold one NASCAR Charter Agreement and has executory contracts to sell two more NASCAR Charter Agreements and related assets … NASCAR officials conveyed to me on more than one occasion that once the Buyers submitted their Transfer Approval Forms and signed their respective Joinder Agreements, NASCAR would promptly provide the necessary approvals to transfer the Charter Agreements to the Buyers.”
Custer detailed significant actions SHR has taken to wind down operations by December 31, 2024, including:
- Releasing two professional drivers.
- Terminating over 200 employees and assisting with their reemployment.
- Returning or selling equipment.
- Selling two airplanes.
- Terminating sponsorships.
Arguments from Both Sides
23XI Racing and Front Row Motorsports claim NASCAR’s actions—alleged anticompetitive behavior and refusal to approve the charter transfers—have forced this dispute. They argue that charter protection would merely maintain the current state until the lawsuit is resolved.
“Nor is this irreparable harm self-inflicted,” the teams stated in a legal filing. “The fact that Plaintiffs were the only two teams who would not acquiesce to NASCAR’s demands does not change the fact that Defendants’ monopolization is causing Plaintiffs’ irreparable harm. Blaming victims for asserting their antitrust rights is not a defense to a Sherman Act violation.”
On the other hand, NASCAR accuses Front Row of acting in bad faith. They claim FRM requested additional time to consider the 2025 agreement but instead filed a lawsuit. NASCAR is seeking to have the teams’ last-minute charter transfer request struck from the record or, at the very least, to allow time to respond.
Next Steps
Judge Kenneth Bell will decide whether to strike the charter transfer request or permit NASCAR to respond. Oral arguments will then determine if 23XI and Front Row are entitled to temporary charter protection for two or three of the disputed charters.
With the 2025 season looming, the resolution of these issues is critical, even before the broader antitrust lawsuit can proceed.
