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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Last day at school for McDowell and Front Row

A driver moving on from a race team is a lot like graduating from school. At the year’s end, loaned items need returning and lockers cleaned out. At some point, the open-door policy ends and the keycard access denied. Front Row Motorsports and …

A driver moving on from a race team is a lot like graduating from school. At the year’s end, loaned items need returning and lockers cleaned out. At some point, the open-door policy ends and the keycard access denied.

Front Row Motorsports and Michael McDowell are going through that transition. McDowell spent seven seasons driving for team owner Bob Jenkins and general manager Jerry Freeze, piloting the organization’s flagship No. 34 Love’s Ford Mustang. But he signed with Spire Motorsports for the 2025 season.

On Friday after the finale at Phoenix, McDowell was making the rounds at the Mooresville, North Carolina shop. There were still some hats and clothes to take from his locker in the hauler. And even a large canvas painting hanging on the wall.

“Oh, this is going to be real bad taking this off,” McDowell cracked.

The relationship between Front Row and McDowell remains as strong as ever. Both sides needed each other when they came together in 2018. Front Row needed a driver to help stabilize the program featuring their biggest sponsor. McDowell was at a crossroads in his career after being replaced by Kasey Kahne at Leavine Family Racing.

“When he came along, it was really good timing,” Freeze tells RACER. “We were trying to build our program up. He was looking for a home. I knew we were getting more than just a driver when he walked in the door. He wanted to be involved in everything we had going on, which was good. It was nice instead of having the drivers cruise through every Tuesday saying hey to everybody, and then you see them at the racetrack.

“Michael was more engaged than others. He really helped raise the bar at Front Row across the board and really challenged us to improve our processes and get better people when they were available. He really helped push things along.”

The team won the Daytona 500 in 2021. It was the first triumph for both the driver and the team in the sport’s biggest race, the third win for the organization, and the second time earning a postseason berth. McDowell then had a career year in 2022 with single-season high marks in top-10 finishes (12).

The 2023 season brought a victory on the Indianapolis road course and a career-high 15th-place finish in the championship standings – a career-high for both McDowell and the organization.

Meanwhile, Todd Gilliland grew into his place in the other Front Row car. Gilliland has earned eight top-10 finishes over the last two seasons and finished 22nd in the championship standings.

“I’ll always appreciate what he brought to the table,” Freeze says of McDowell.

Front Row has known McDowell would be leaving since early spring. Soon after, the same could be said for McDowell’s crew chief, Travis Peterson. The balance became wanting the team to succeed the remainder of the year but not have the two walk out the door “with every secret” Front Row has.

Freeze admitted it was challenging. It was business as usual through the summer, but the last part of the season saw isolation start for those who would not return to the organization next year. The meetings about future directions, technologies and partners were off-limits.

On the marketing side, Front Row wanted to be out front with their partners, such as Love’s, about the future. Love’s has materials with McDowell’s likeness that need to be adjusted.

How about fan mail? It turns out that never stops showing up to the race shop, even if a driver leaves. Freeze expects at least 12 to 18 months or longer of collecting McDowell pieces that must be forwarded along.

“We’ll get race fans who send stuff for drivers who haven’t driven here in over 10 years,” Freeze says. “We’ll get one or two pieces every year of stuff for Jimmy Means, who Bob was partners with at the very incarnation of Front Row Motorsports in 2005. But I’ve got Jimmy’s address, and I’ll send them to him. David Ragan still comes by once or twice a year because we’ll have a lot of David Ragan stuff to sign, and he knows people are sending it here.”

It’s a split between what Front Row owns and will get back from McDowell and what the driver brought. McDowell owns his racing seats and will take those with him. Front Row, however, paid for the seat inserts. But as they have no use for them, they’ll be given to McDowell.

Front Row will get back a tablet or laptop, which drivers use for SMT or other data-driven work and study. The Ford program vehicle has already been returned.

But there are no deadlines set on McDowell to get things done.

“It’s so familial (with us) that he was telling me when he was going to bring stuff back, so it’s like he’s still a part of the team,” Freeze says. “We’re not too heavy-handed. If we need something back, we’ll holler.

“I have had to chase down program vehicles and send a repo team to a driver’s house to get it because we needed it for somebody else and they hadn’t had a chance to get it back to us. I guess if you’re really mad at someone, you’d want everything back the Monday after Phoenix, but I don’t think we’ve come across that situation yet.”

The vehicle return was something Freeze and McDowell laughed about.

“He said, ‘I thought about when I picked up the program vehicle you guys first gave me and the (previous) driver had left some trash bags in the back with some dirty diapers,’” Freeze chuckles. “So, he said he did a better job returning the vehicle than how he got it.”

McDowell has since updated his social media profiles and has appeared in Spire Motorsports videos. But he’s not done with Front Row Motorsports just yet. Although he’s erased his existence from the place, McDowell is expected to attend the organization’s Christmas celebration and address the team one last time.

“It’s been an amazing journey, and even though this chapter is coming to an end, this is family to me,” McDowell says. “It always will be.”

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.

Todd Gilliland to switch car numbers at Front Row Motorsports for 2025

Todd Gilliland will move away from his No. 38 car at Front Row Motorsports, taking over the No. 34 car for Michael McDowell in 2025.

[autotag]Todd Gilliland[/autotag] will have a new car number at [autotag]Front Row Motorsports[/autotag] for the 2025 NASCAR Cup Series season. On Tuesday morning, Front Row Motorsports announced that Gilliland will move to the No. 34 Ford with sponsorship from Love’s in 2025. Michael McDowell, who previously drove the No. 34 car, joins Spire Motorsports’ Cup Series lineup.

Gilliland has spent the last three Cup Series seasons at Front Row Motorsports but made select starts with Rick Ware Racing in 2023 after the organization demoted him to a part-time schedule. Now, the son of former Front Row Motorsports driver David Gilliland will follow in his father’s footsteps with sponsorship from Love’s.

As for the rest of Front Row Motorsports’ lineup, Noah Gragson’s car number is uncertain, and the third entry is still vacant. Zane Smith is the favorite for the ride, but it has been a slower process as the organization continues its lawsuit against NASCAR. For now, Gilliland is the only driver with a locked in car number, solidifying his place at Front Row Motorsports for years to come.

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Gilliland to take over flagship No. 34 car at Front Row Motorsports in 2025

Todd Gilliland will drive the No. 34 at Front Row Motorsports in 2025 and carry the Love’s Travel Stops colors. Gilliland had driven the No. 38 for the organization, but he takes over the flagship No. 34 Ford Mustang after the departure of Michael …

Todd Gilliland will drive the No. 34 at Front Row Motorsports in 2025 and carry the Love’s Travel Stops colors.

Gilliland had driven the No. 38 for the organization, but he takes over the flagship No. 34 Ford Mustang after the departure of Michael McDowell.

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“It is really humbling to race the No. 34 Love’s Travel Stops Ford Mustang beginning next season,” Gilliland said. “It’s just another cool moment in my career to race for a company that represented my father at FRM. The 34 Ford is what started FRM in the Cup Series and there is a lot of history with Love’s, FRM, and my family. I still remember watching my dad race the Love’s Ford.

“I do not take this next step lightly. I have seen the rise of the team and the new level of expectations. It is an honor that Love’s is putting their trust in me to continue to grow this team and compete for wins and get into the playoffs. I am gracious for this opportunity and look forward to 2025.”

David Gilliland drove the Love’s car for the first time in 2013 in the Daytona 500. The older Gilliland competed with Front Row Motorsports for the 2014-2015 season.

Todd Gilliland, however, has raced under the Love’s Travel Stops banner himself – but he carried the Speedco colors, not Love’s – in the Craftsman Truck Series in 2020 and 2021.

A crew chief for Gilliland was not announced. He will be the longest tenured Front Row Motorsports driver beginning next season.

Gilliland will be teammates with Noah Gragson. The car number and team for Gragson has not been announced. The organization is also working through plans to expand to a third car.

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, 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:

Court denies expedited discovery motion for 23XI, Front Row

23XI Racing and Front Row Motorsports have had their motion for expedited discovery denied by the court. The request was filed earlier this month on the heels of the motion for preliminary injunction that was filed. The teams were seeking immediate …

23XI Racing and Front Row Motorsports have had their motion for expedited discovery denied by the court.

The request was filed earlier this month on the heels of the motion for preliminary injunction that was filed. The teams were seeking immediate access to documents and files from NASCAR CEO Jim France, Lesa France Kennedy, Ben Kennedy, Steve O’Donnell, Steve Phelps and Scott Prime. The requests concerned the 2025 charter agreement, the negotiation process, the take-it-or-leave-it final offer made to teams in September, exclusivity NASCAR has with racetracks, acquisition of the ARCA Menards Series, and specific provisions in the charter agreement.

In his ruling, United States District Judge Frank D. Whitney laid out multiple factors for the decision. First, the court determined the request would not be as the team’s proposed of “narrowly tailored” and a “minimal burden to Defendants.” The requests for production were also seen as overly broad as it spanned eight years.

As written in the ruling, “More critically, though, Plaintiffs seek all of this information within five days of a Court order granting their motion for expedited discovery … a timeframe that would put a significant burden on Defendants. Accordingly, this factor weighs heavily against granting the motion.”

Secondly was the issue of irreparable harm, which the teams had to show existed if the expedited discovery was not granted. The teams, however, had acknowledged they could show a likelihood of harm done. It was seen by the court that the Plaintiffs conceded that they didn’t need the expedited discovery as it pertains to the preliminary injunction.

“Plaintiffs do not address the potential irreparable harm caused by the risk of loss of evidence if this Court does not permit expedited discovery,” the ruling states. “Defendants state in their response that they ‘have implemented a litigation hold that preserves relevant materials, including those requested by Plaintiffs.’ Accordingly. This consideration also weighs against granting Plaintiffs’ motion.”

Thursday, the motion was denied. The preliminary injunction hearing is scheduled for Monday, Nov. 4.

23XI Racing and Front Row Motorsports filed the preliminary injunction to race as chartered teams in 2025 while the antitrust case goes through the legal system.

NASCAR asks for 23XI, Front Row motion to be denied; calls lawsuit ‘meritless’

NASCAR has asked for the expedited discovery motion filed by 23XI Racing and Front Row Motorsports to be denied. The 22-page response to the motion was filed by NASCAR on Wednesday. In asking for the motion to be denied, NASCAR claims it is a …

NASCAR has asked for the expedited discovery motion filed by 23XI Racing and Front Row Motorsports to be denied.

The 22-page response to the motion was filed by NASCAR on Wednesday. In asking for the motion to be denied, NASCAR claims it is a one-sided, non-reciprocal request for relief more akin to a motion to compel.

NASCAR, in its response to the plaintiffs’ motion, opens by saying, “Plaintiffs have filed a meritless suit against NASCAR alleging baseless antitrust claims in order to obtain commercial agreements they previously rejected, and to attempt to extort more favorable contract terms.” The commercial agreements would be the 2025 Charter Agreement the two organizations did not sign, which NASCAR goes on to say is no longer available.

It also says, “The deadline for Plaintiffs to sign 2025 Charter Agreements expired weeks ago, and NASCAR has taken steps, consistent with its contractual obligations to other Charter Teams, to plan for a season with only 32 Charters. Plaintiffs do not need these Charter Agreements to race, and indeed have stated publicly that they will be racing in NASCAR regardless.”

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23XI Racing and Front Row Motorsports have plans to field three full-time chartered entries next season. It would be an expansion for both organizations, which are fielding two cars. The additional charter for each would come from Stewart-Haas Racing, which is shutting down.

The two organizations filed a motion for expedited discovery with its preliminary injunction request on Oct. 9. As the antitrust lawsuit against NASCAR proceeds, 23XI Racing and Front Row Motorsports want to race as charter teams in 2025.

In the motion for expedited discovery, the organizations asked to receive immediate access to documents and files discussing the mandatory release provision in the 2025 Charter Agreement; documents discussing NASCAR’s decision to end negotiating with the Team Negotiating Committee and only negotiate with individual racing teams for the 2025 Charter Agreement; and documents discussing NASCAR’s decision to present to the teams a take-it-or-leave-it final proposal for the 2025 Charter Agreement.

“Plaintiffs’ overreaching requests belie their true aim: to use the antitrust discovery process as a weapon,” NASCAR’s filing claims. In turn, NASCAR laid out four arguments: the plaintiffs fail to demonstrate a likelihood of irreparable harm; plaintiffs’ expansive requests are not narrowly tailored to the preliminary injunction; the plaintiffs do not identify any information that is at risk of destruction; the procedural posture and timing of plaintiffs’ motion do not support expedited discovery.

However, if the court rules in favor of the expedited discovery motion, NASCAR has asked that the discovery be reciprocal and limited to non-privileged documents that are directly related to the issue raised in the preliminary injunction request.