23XI Racing and Front Row Motorsports are in no danger of missing the 2025 NASCAR Cup Series season.
NASCAR has removed a clause from its charter agreement that would have prevented the teams from operating as open teams next season after taking legal action against the sanctioning body. Neither team signed the charter agreement with the sanctioning body and has filed an antitrust lawsuit against NASCAR, accusing the company of monopolistic practices.
“We are pleased to announce that NASCAR has removed the anticompetitive release requirement from its open agreement, allowing 23XI and Front Row Motorsports to race as open teams in 2025,” attorney Jeffrey Kessler said in a statement. “My clients will continue their appeal to the 4th Circuit to issue an injunction allowing them to act as chartered teams to prevent irreparable harm.”
“Both racing teams are pleased to continue participating in this sport they love as they fight to make it fair and equitable for all.”
The teams’ original request for an injunction was denied last week. The two teams are appealing the ruling as they ask to compete as chartered teams next season while the lawsuit continues. Chartered teams are guaranteed entry to every race on the Cup Series schedule and receive a larger share of the money than open teams.
The two teams were the only ones not to sign NASCAR’s new charter agreement. The previous agreement expired at the end of the 2024 season. The teams have called NASCAR “monopolistic bullies” and 23XI Racing co-owner Denny Hamlin had said NASCAR’s offers to teams had not improved over the course of the season.
Both teams competed with two cars in 2024. 23XI Racing fielded cars for Bubba Wallace and Tyler Reddick, while Front Row had cars for Michael McDowell and Todd Gilliland.
While the removal of the clause means both teams can at least try out for the Daytona 500 without a guaranteed starting spot, the fate of their potential third-car charter deals is still unknown. Stewart-Haas Racing folded at the end of the 2024 season and had an agreement to sell a charter to each team. If both 23XI and FRM compete as open teams in 2025, it is unclear who will own the charters if the deal falls through.
