23XI Racing and FRM’s 2025 Charter Plans in Jeopardy Amid Legal Dispute with NASCAR
Michael Jordan’s 23XI Racing and Front Row Motorsports (FRM) face significant hurdles in their efforts to secure a third charter for the 2025 NASCAR Cup Series, as their ongoing legal battle with NASCAR intensifies.
Charter Agreement Standoff
The dispute revolves around NASCAR’s new charter agreement, which both teams have challenged. According to insider Bob Pockrass, 23XI Racing and FRM must win an injunction for their planned purchases of charters from Stewart-Haas Racing (SHR) to proceed while their lawsuit against NASCAR continues.
Should the court rule against the injunction, SHR may need to lease the charters to other teams for 2025. This would leave 23XI Racing and FRM to compete as open teams, without the guaranteed entry and benefits of charter status.
NASCAR has firmly stated that the charter agreement is currently “off the table” for both teams, though this stance could change if the governing body reconsiders its position.
Third Driver Announcements in Limbo
Despite the uncertainty, 23XI Racing has already named Riley Herbst as its third driver for 2025, marking the rookie’s full-time debut in the Cup Series. Similarly, FRM has signed Noah Gragson, who drove for SHR in 2024.
Who Could Step In If Charters Are Up for Grabs?
If the injunction is denied, two teams appear poised to capitalize on the opportunity to acquire additional charters:
Richard Childress Racing (RCR)
With Austin Dillon and Kyle Busch as its current charter drivers, RCR has a rich NASCAR history. Earlier this year, the team expressed interest in acquiring one of SHR’s charters but ultimately held off.
If 23XI Racing and FRM’s plans fall through, RCR may get another chance to add a third full-time driver to its roster. Reports suggested Noah Gragson was a potential candidate for RCR had they secured an SHR charter earlier this year.
Kaulig Racing
Kaulig Racing, with Ty Dillon and A.J. Allmendinger set for 2025, could also be a contender. The team has previously run a third car part-time and teased ambitions of expansion.
President Chris Rice hinted at “big news” earlier this year as the SHR charter bidding intensified. While financial considerations remain a challenge—charters cost tens of millions of dollars—Kaulig Racing’s addition of a third full-time driver could help boost its standings and overall competitiveness.
What’s Next?
As the legal proceedings unfold, the fate of the two SHR charters and the 2025 NASCAR Cup Series lineup hangs in the balance. If the court sides with NASCAR, teams like RCR and Kaulig Racing could step in, reshaping the competition landscape.
With high-profile figures like Michael Jordan and prominent drivers involved, the outcome of this dispute will undoubtedly have significant implications for the future of NASCAR’s charter system.
