NASCAR’s new charter agreement is ‘off the table’ for 23XI Racing

NASCAR’s new charter agreement is “off the table” for 23XI Racing and Front Row Motorsports amid its antitrust lawsuit.

The 2024 NASCAR offseason is well underway, and one news story has dominated the headlines. [autotag]23XI Racing[/autotag] and [autotag]Front Row Motorsports[/autotag] filed an antitrust lawsuit against NASCAR regarding the new charter agreement. It has been a back-and-forth battle; however, it doesn’t appear the two NASCAR Cup Series teams will have another chance at signing.

According to FOX Sports’ Bob Pockrass, NASCAR said the charter agreement is “off the table” for 23XI Racing and Front Row Motorsports. This means 23XI Racing and Front Row Motorsports won’t have charters moving forward unless they win the injunction, sign charter agreements for transferred charters with Stewart-Haas Racing, or if NASCAR changes its mind.

This has been an up-and-down journey, but 23XI Racing and Front Row Motorsports are in a tough spot. The original charter agreement is off the table for NASCAR, and it might get even more tricky moving forward. It will be fascinating to watch the process play out as NASCAR and the two Cup Series organizations continue the process.

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NASCAR moves to dismiss 23XI and Front Row lawsuit

NASCAR filed a motion on Monday for a dismissal of the antitrust lawsuit brought by 23XI Racing and Front Row Motorsports. “Plaintiffs’ Complaint is a misguided attempt to dress up private business frustrations in antitrust garb,” the motion states. …

NASCAR filed a motion on Monday for a dismissal of the antitrust lawsuit brought by 23XI Racing and Front Row Motorsports.

“Plaintiffs’ Complaint is a misguided attempt to dress up private business frustrations in antitrust garb,” the motion states. “Plaintiffs’ bring claims barred by the statute of limitations and laches; they fail to plead any reduction in competition, meaning they do not have the required antitrust injury to establish antitrust standing; and they aim to renegotiate contractual terms rather than address anticompetitive behavior. Plaintiffs’ claims should be dismissed.”

The lawsuit was jointly filed Oct. 2 against NASCAR and chairman Jim France. 23XI Racing and Front Row Motorsports accuse NASCAR and the France family of being monopolistic bullies and that they’ve used anticompetitive practices that have prevented fair competition within the sport.

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In addition to the lawsuit, a motion was filed for a preliminary injunction to race as charter teams next year while undergoing litigation. It was denied Nov. 8. After initially appealing the decision, the appeal was dropped and the request refiled in district court.

There were four different grounds for the motion to be dismissed presented by NASCAR.

The first was that “most of the Plaintiffs’ claims are time-barred by the statute of limitations and laches because they concern conduct that occurred more than four years ago.” Those claims were about NASCAR acquiring the ARCA Menards Series in 2018 International Speedway Corporation (ISC) in 2019, requirements for the Next Gen car in 2020, and NASCAR’s exclusivity arrangements with racetracks, and the original charter agreement.

The second was that “Plaintiffs’ lack antitrust standing to sustain their challenges to the 2025 Charters’ release of claims and noncompete provisions, which are their only claims that arguably fall within the statute of limitations, because Plaintiffs’ did not sign the Charters and their failure to secure preferred contractual terms is not antitrust injury.”

23XI Racing and Front Row Motorsports were the only two teams that did not sign the 2025 charter agreement. Jeffrey Kessler, the lead attorney for the teams, issued a statement Nov. 16 that NASCAR had removed the anticompetitive release requirement in the Open agreement. It clears the way for the organizations to race as open teams next season.

Because they did not sign the agreement, NASCAR argues the two terms 23XI Racing and Front Row Motorsports are challenging (the release and non-compete provisions) do not impact them. Furthermore, because they are not bound by those provisions, they do not suffer any “concrete injury” from the terms being included in the charter agreement.

NASCAR went on to say that without a signed agreement, 23XI Racing and Front Row are free to race in any league or start their own.

“To the extent Plaintiffs are arguing that they were injured from their inability to secure better terms from NASCAR, ‘[f]ailure to secure preferred contractual terms is not an antitrust injury’ and ‘a breakdown in contract negotiations is outside the Sherman Act’s scope.’”

The third ground made by NASCAR in its motion was that “Plaintiffs’ proposed market definition is legally deficient because it analyzes the market post-investment rather than pre-investment.”

And the fourth grounds for dismissal point was that “Plaintiffs have not alleged any facts demonstrating exclusionary conduct by NASCAR for two reasons. First, NASCAR did not refuse to deal with Plaintiffs; rather, NASCAR proposed contractual terms which Plaintiffs rejected and which are no longer available. Second, Plaintiffs have not pleaded any facts plausibly demonstrating that either of the two challenged Charter provisions reduces competition.”

NASCAR chairman and CEO Jim France filed a memorandum in support of the motion to dismiss the case. France argues the claims against him fail for the same reasons they fail against NASCAR, and that the claims do not make plausible, factual allegations that he “actively and knowingly engaged in a scheme designed to achieve anticompetitive ends.”

23XI Racing and Front Row Motorsports have until Dec. 16 to respond to NASCAR’s motion for the case to be dismissed.

Riley Herbst joins 23XI Racing full-time for 2025 NASCAR Cup season

23XI Racing announced that Riley Herbst will drive the No. 35 car full-time during the 2025 NASCAR Cup Series season.

[autotag]Riley Herbst[/autotag] has a new home in NASCAR for the 2025 season. On Wednesday morning, [autotag]23XI Racing[/autotag] revealed that Herbst will drive the No. 35 car full-time in the NASCAR Cup Series during the 2025 season. This comes as 23XI Racing and Front Row Motorsports go through their lawsuit against NASCAR regarding the charter agreement.

Herbst will bring Monster Energy as a sponsor, making him the third driver with that partnership in the Cup Series. The former Stewart-Haas Racing driver ended the 2024 season on a high note after winning the season finale at Phoenix Raceway in the NASCAR Xfinity Series, sending the organization off with one final victory.

Over the weekend, NASCAR removed a clause allowing 23XI Racing to continue with its lawsuit while racing without charters in the Cup Series. Herbst’s future has been up in the air with the ongoing lawsuit, but he has landed with one of NASCAR’s best teams for now. This is an amazing opportunity for Herbst and one that could lift his career to new heights.

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Latest updates on 23XI Racing’s lawsuit against NASCAR in 2024

What are the latest updates on 23XI Racing’s lawsuit against NASCAR in 2024? Check out the latest developments in the ongoing lawsuit!

[autotag]23XI Racing[/autotag] and [autotag]Front Row Motorsports[/autotag] are currently in the midst of a lawsuit against NASCAR regarding the charter agreement. Neither NASCAR Cup Series organization has signed the new agreement, making them open organizations starting in 2025. So, what are the latest updates on 23XI Racing and Front Row Motorsports’ lawsuit against NASCAR?

Over the weekend, NASCAR removed a key clause, which will now allow 23XI Racing and Front Row Motorsports to race as “open” organizations while pursuing the antitrust lawsuit. The two NASCAR teams wouldn’t receive the benefits of a charter, meaning they still need to qualify for every race, including the 2025 Daytona 500.

Meanwhile, NASCAR commented on 23XI Racing and Front Row Motorsports’ motion to expedite an appeal over the preliminary injunction on Monday. According to FOX Sports’ Bob Pockrass, NASCAR had this to say on the request.

“There is … certainly no urgency that would justify Plaintiffs’ extraordinary request to require NASCAR to file its opening brief within a mere 12 days, over a period that includes the Thanksgiving holiday…Moreover, Plaintiffs’ proposed schedule is highly unfair to this Court: it would give the Court only one week with that briefing before oral argument.”

The lawsuit continues to be an ongoing process with no end in sight. 23XI Racing and Front Row Motorsports’ lawsuit figures to be the top story throughout the 2024 NASCAR offseason.

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23XI Racing, Front Row Motorsports to run as open teams in ’25

23XI Racing and Front Row Motorsports will compete next season as open teams in the NASCAR Cup Series. “We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and …

23XI Racing and Front Row Motorsports will compete next season as open teams in the NASCAR Cup Series.

“We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025,” Jeffrey Kessler, the lead attorney for the teams, said in a statement. “My clients will continue their appeal to the 4th Circuit to issue an injunction so that they can run as chartered teams, therefore avoiding irreparable harm.

“Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”

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The issue with the clause is that it states legal claims cannot be brought against NASCAR. 23XI Racing and Front Row Motorsports want to be able to see litigation through while still competing but could not sign either agreement because of the clause.

The organizations did not sign the 2025 charter agreement or the open agreement when given a deadline by NASCAR in early September. In response, an antitrust lawsuit was filed in which 23XI Racing and Front Row Motorsports accused NASCAR and Jim France of anti-competitive practices and being monopolistic bullies.

A judge denied the initial request for a preliminary injunction to be recognized as charter teams next season while removing the release clause on Nov. 8. The following day, Denny Hamlin, one of the co-owners of 23XI Racing, said it was “TBD” if the organization races next year.

Kessler has asked for an expedited appeal. The first event of the 2025 season is Feb. 2.

An open team will be required to qualify for each race. However, charter teams have guaranteed starting spots and a larger portion of the prize money.

The lawsuit, meanwhile, will be assigned to the fast track for a quick resolution.

23XI Racing’s plans for 2025 Daytona 500, NASCAR season are ‘TBD’

23XI Racing’s plans for the 2025 Daytona 500 and NASCAR season are “TBD.” Will 23XI Racing compete as a full-time organization in 2025?

[autotag]23XI Racing[/autotag]’s plans for the 2025 NASCAR season became uncertain on Friday afternoon. During the State of the Sport address, a federal judge denied a motion to recognize 23XI Racing and Front Row Motorsports as chartered teams as they move forward with their antitrust lawsuit involving NASCAR. On Friday, 23XI Racing owner Denny Hamlin confirmed the fluidity of those plans.

When asked if 23XI Racing will have cars at the Busch Light Clash and the 2025 Daytona 500, Hamlin said he thinks it’s “all [to be determined].” This was the first time Hamlin has admitted that 23XI Racing may not show up for the 2025 Daytona 500, affecting the team’s eligibility throughout the season. Yet, the comment about 2025 could be for legal purposes.

It’s unclear how 23XI Racing will look in three months, but it has been a stressful journey for Bubba Wallace and Tyler Reddick. The two NASCAR drivers could find themselves in a tough situation if 23XI Racing truly isn’t able to compete in February. For now, 23XI Racing will continue to move forward with its lawsuit with Front Row Motorsports against NASCAR.

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‘It’s been a frustrating week’ for Wallace after Martinsville penalty

Bubba Wallace does not believe he did anything wrong at Martinsville Speedway that resulted in his 23XI Racing team being penalized with two others for race manipulation. “We can all agree to disagree,” Wallace said Saturday at Phoenix Raceway. “It …

Bubba Wallace does not believe he did anything wrong at Martinsville Speedway that resulted in his 23XI Racing team being penalized with two others for race manipulation.

“We can all agree to disagree,” Wallace said Saturday at Phoenix Raceway. “It is what it is. We’re here at Phoenix.”

Wallace slowed on the final lap of the elimination race and was passed by Toyota teammate Christopher Bell going into Turn 3. Both drivers were running one lap down, but Bell needed the position from Wallace because it put him into a tiebreaker with fellow championship contender Wiliam Byron. Bell had the tiebreaker on Byron to advance.

But NASCAR penalized Bell for riding the wall in the final corners and it’s Byron who is racing for a championship. Wallace was fined $100,000 and docked 50 points. His team was also fined $100,000 and docked 50 points while his spotter (Freddie Kraft), crew chief (Bootie Barker), and a team executive (Dave Rogers) are suspended from this weekend’s events.

Wallace said he was unaware of the situation unfolding around him last weekend. Denny Hamlin, Wallace’s co-owner, also denied his driver did anything wrong and said a look at the right rear tire post-race showed it had gone bald.

“We were running our own race and started to bleed there really hard,” Wallace said. “I tried to hold off the [No.] 5 from getting to the next lapped car and just burnt my [expletive] up, so a product of racing, and the frustrating part is we showed up there in the spring with a car capable of winning and showed back in the fall, and we’re a nobody. That’s super frustrating.

“It’s been a really frustrating week.”

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A week that is capped off in bittersweet fashion…

Barker is not only sitting at home but also doing so to end his tenure as Wallace’s crew chief. He is moving to an internal role with the organization next season.

“Bootie’s last race with the [No.] 23 group has to be tarnished by that,” Wallace said. “Bootie has meant a lot to me in the short amount of time I’ve gotten to be with him [over] the last three years. He’s become one of my best friends, and I told him that when we made the decision to go a different direction. I said I don’t throw out the best friend term very easily, so to see him on the sidelines and not going to our last race – win, lose, or draw, it doesn’t matter – he’s not here in the trenches with us, and that [irritates me] for sure.

“But [life] goes on. Time doesn’t wait for you; it keeps going. We’re here. I feel like we’ve got a really good Star Wars/Columbia Toyota Camry. We just have to make it all happen tomorrow.”

23XI Racing chose not to appeal the penalty. Wallace’s teammate, Tyler Reddick, is racing for the Cup Series championship Sunday afternoon and the organization wanted to focus its time and effort on his car.

“Tyler and the [No.] 45 group have worked their [rears] off to put themselves in a spot to go for a championship,” Wallace said. “For us to make the decision not to appeal, I didn’t agree with that, but I understood once they broke it down. We have to have all of our eggs in the same basket and time invested in the right things and at the right time. The right time is focusing on the championship for the [No.] 45 and bringing home 23XI their first championship.

“As soon as that was communicated, it was easy to let your guard down and appreciate that and support the team’s decision because, at the end of the day, that’s the most important thing. We’ll continue to go on and race and be competitive and do everything we can.”

Hamlin says it’s ‘TBD’ if 23XI Racing competes in Cup next season

Denny Hamlin acknowledged for the first time Friday it is “TBD” if 23XI Racing will compete in 2025. The reaction comes a day after 23XI Racing and Front Row Motorsports were denied their preliminary injunction request. As the only two teams who …

Denny Hamlin acknowledged for the first time Friday it is “TBD” if 23XI Racing will compete in 2025.

The reaction comes a day after 23XI Racing and Front Row Motorsports were denied their preliminary injunction request. As the only two teams who have not signed the 2025 charter agreement, not only has a lawsuit been brought against NASCAR on antitrust claims, the two organizations want to race as charter teams next season while pursuing litigation.

A charter team is guaranteed a spot in each race and a portion of the prize money; open teams receive significantly less.

“I think it’s all TBD,” Hamlin said of the Nos. 23 and 45 teams running The Clash at Bowman Gray Stadium in February and the season-opening Daytona 500. “There are certain agreements we’re going to have to navigate, so I hope so.”

Although the injunction was denied, as it was determined the teams only complained of speculative harm, 23XI Racing indicated it will appeal the ruling. Additionally, U.S. District Court Judge Frank Whitney said the team could file a renewed motion if circumstances change.

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“We were obviously pleased with the ruling that the judge sees merit in [the] case,” Hamlin said. “He’s going to move forward to expedite it [and] expedite the discovery side of it, which is a reverse from what he had before. Obviously [this could give us] an opportunity to refile once the situation changes, because he knows that things will change over the next few months.

“He understands the complexity of it and obviously understands that the situation is fluid, and we obviously could see some pretty bad harm coming up.”

A two-car team since 2022, the plan is to expand to three full-time entries beginning next season. 23XI Racing is one of the teams that is in the market to buy a charter for sale from Stewart-Haas Racing, which is closing its doors. Gene Haas kept one charter for the rebranded Haas Factory Team, but the other three are headed elsewhere.

NASCAR approves all charter sales, but it is unclear what NASCAR will decide about the charter if 23XI Racing cannot purchase it.

Hamlin also admitted he does not “have any indication of [what happens to] it. I don’t.”

23XI, Front Row denied in preliminary injunction request

23XI Racing and Front Row Motorsports have had their preliminary injunction request denied. In his ruling, U.S. District Court Judge Frank Whitney said the teams “have not met their burden as required.” However, the teams can file a renewed motion …

23XI Racing and Front Row Motorsports have had their preliminary injunction request denied.

In his ruling, U.S. District Court Judge Frank Whitney said the teams “have not met their burden as required.” However, the teams can file a renewed motion for a preliminary injunction if circumstances change.

The current charter agreement expires on Dec. 31. The lawsuit will be assigned to the fast track to be settled as quickly as possible.

The request was heard earlier this week. 23XI Racing and Front Row Motorsports argued to race as charter teams in 2025, or their operations would suffer. Additionally, they asked for the release clause in the charter agreement to be waived, which gives teams no right to sue NASCAR.

However, Whitney cited case law that states “a plaintiff seeking a preliminary injunction must ‘demonstrate that irreparable injury is likely in the absence of an injunction.’ A showing of the ‘possibility of irreparable harm’ is not sufficient.” He went on to additionally cite that “the required irreparable harm must be neither remote or speculative, but actual and imminent.”

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23XI Racing and Front Row Motorsports, through their lead lawyer, Jeffrey Kessler, argued that without a charter agreement, the teams could lose their sponsor partners, and the drivers could leave for another team. Whitney viewed both of those prospects as too speculative.

Whitney addressed that the teams did not allege that their business would not survive without a preliminary injunction. “Instead, they allege that their businesses may not survive without a preliminary injunction. This allegation does not indicate an ‘impending threat of [Plaintiffs’] operations not surviving the pendency of this matter.’”

“Fourth, although loss of goodwill may justify injunctive relief … at this stage, Plaintiffs have alleged only a potential loss of goodwill, contingent on a host of events occurring, including speculation about how third parties may or may not act. Finally, the possibility that NASCAR may exclude open teams … is merely speculative. Based on the parties’ representations at the hearing, the Court understands Plaintiffs could sign open contracts today and continue racing in 2025.

“Instead, they have chosen not because they have been unable to negotiate a contract without the provision of which they complain. As such, this speculative harm does not warrant the extraordinary relief of a preliminary injunction.”

23XI Racing and Front Row Motorsports announced they intend to appeal the decision:

23XI Racing won’t appeal race-manipulation penalty

23XI Racing did not file an appeal of the penalty issued Tuesday for being involved in manipulating Sunday night’s elimination race at Martinsville Speedway. “After internal deliberations, 23XI has decided not to appeal NASCAR’s decision to penalize …

23XI Racing did not file an appeal of the penalty issued Tuesday for being involved in manipulating Sunday night’s elimination race at Martinsville Speedway.

“After internal deliberations, 23XI has decided not to appeal NASCAR’s decision to penalize the No. 23 team,” a team statement read. “We disagree with the penalty ruling and strongly believe we did not break any rules at Martinsville. It is our conclusion that it is in our best interests, and those of our team members, partners, and fans, to fully devote our personnel and resources this week toward the championship and not an appeal.”

NASCAR announced its penalties Tuesday night with 23XI Racing being one of three teams who were docked points, fined, and issued suspensions. Bubba Wallace crew chief Bootie Barker and spotter Freddie Kraft will not be with the team this weekend for the season finale at Phoenix Raceway.

It was a 50-point deduction and a $100,000 fine each to the driver and the team.

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Kraft did not give Wallace specific instructions over the in-car radio but did update his driver on the situation with Toyota teammate Christopher Bell and other playoff contenders. Barker also discussed the situation on the team’s channels. With a few laps to go, Wallace reported that he thought he had a flat tire.

Wallace slowed at the white flag and nursed his Toyota to the finish. Bell, meanwhile, passed him for a position he needed going into Turn 3. It put Bell into a tiebreaker with Byron, which he would have won and made the Championship 4. Subsequently, NASCAR deemed Bell drove against the wall in Turn 4, which is an outlawed move.

The penalty to 23XI Racing fell under member conduct, which includes race manipulation and actions detrimental to stock car racing.

Tyler Reddick will compete for the Cup Series championship on Sunday for 23XI Racing.

The appeals of Trackhouse Racing and Richard Childress Racing will be heard Thursday.