Following a preliminary injunction request by 23XI Racing and Front Row Motorsports related to their antitrust lawsuit against NASCAR, the league has now filed an opposition that revealed it intends to sell all six charters in October.
As reported by Bob Pockrass of Fox Sports, NASCAR filed a response on Monday night stating that it has existing teams interested in buying the charters originally issued to 23XI and FRM. With a 30-day bidding process required, NASCAR argued it must begin that process soon since new entrants would likely need to get started by Oct. 1 in order to prepare for the 2026 Cup Series season.
Related: Tyler Reddick Landing Spots if He Leaves 23XI Racing over Lost Charters
23XI Racing and Front Row Motorsports lost their charters in July, after a federal judge rejected the teams’ bid for a temporary restraining order. U.S. District Court Judge Kenneth Bell stated in his denial that neither team was at risk of losing their drivers or sponsors in the immediate future as a result of losing the charters.
NASCAR first positioned itself for that legal victory by creating a new rule that ensured all six drivers from FRM and 23XI would still qualify for every remaining race on the Cup Series schedule.
The two teams filed their latest injunction request recently in hopes of being re-chartered for the remainder of the year. If granted, they would receive a larger share of the prize pool for race finishes and collect the full payouts for playoff participation and top-16 results in the NASCAR standings.
In their July filing, 23XI and FRM stated they learned through discovery that NASCAR intended to begin the sale process of the six charters, which they claimed put them in “irreparable jeopardy of never getting their charters back and going out of business.” In his decision, Judge Bell wrote that while that was a “fair and significant” concern, NASCAR had agreed not to sell the charters before the court could rule on the plaintiffs’ motion for a preliminary injunction.
“This is a fair and significant fear; however, NASCAR has agreed that it ‘will not sell any charters before the court can rule on plaintiffs’
U.S. District Court Judge Kenneth Bell in July in his ruling against 23XI Racing and Front Row Motorsports
NASCAR’s agreement only applied directly to the preliminary injunction filed earlier in the summer. However, the league’s admitted timeline to sell the charters would fall during the playoffs. 23XI driver Bubba Wallace has already clinched a playoff spot and Tyler Reddick is on the verge of securing one of the final positions. This could allow the team to argue that the sale of both charters would result in the loss of sponsors or even cost them Reddick and Wallace during the postseason. Reddick’s contract includes an opt-out clause if 23XI loses its charters.
Following Monday night’s developments, 23XI co-owner Denny Hamlin posted on X that NASCAR may release the 2026 schedule this week to divert attention from its plan to sell the six charters. To his argument, reports have indicated the schedule is expected to be released later this week.
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As reported by Jeff Gluck of The Athletic, NASCAR’s filing on Monday night stated that the court cannot force it to be in a business relationship with parties it does not want to. The filing also argued NASCAR would be harmed if the court blocked it from selling the six charters to “many eager potential entrants.”
“Unlike the Plaintiffs, many individuals and organizations, including the interested parties referenced above, view the 2025 Charters as a good investment and want to acquire them and work with NASCAR to further grow the Cup Series.”
NASCAR President Steve Phelps in the legal response to the preliminary injunction filed by 23XI Racing, Front Row Motorsports
The teams interested in acquiring the six charters were not named. Joe Gibbs Racing and Hendrick Motorsports are ineligible because they already hold four charters, “grandfathered in” past the current limit of three per organization. Trackhouse Racing is also at the three-charter limit. Legacy Motor Club is actively seeking a third charter. It is also likely that RFK Racing is interested, while Kaulig Racing, Richard Childress Racing, and Rick Ware Racing are other possible suitors.
