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23XI Racing and Front Row Motorsports are not in danger of missing the 2025 NASCAR Cup Series season.
NASCAR has dropped a clause from its charter deal that would have prevented the teams from running as open teams next season because they brought legal action against the sanctioning body. Neither team has signed the charter agreement with the sanctioning body and have filed an antitrust lawsuit against NASCAR accusing it of monopolistic practices.
“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,” attorney Jeffrey Kessler 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.”
The teams’ initial 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 proceeds. Chartered teams are guaranteed entries into every race on the Cup Series schedule and get a larger share of purse money than open teams do.
The two teams were the only ones to not 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 that NASCAR’s offers to teams had not improved over the course of the season.
Both teams competed as two-car entries 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 that both teams will at least be able to attempt the Daytona 500 without a guaranteed starting spot, the fates of their potential charter deals for third cars are still unknown. Stewart-Haas Racing closed down 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’s unclear who will own the charters if the deal doesn’t go through.