NASCAR: Biggest lawsuit loser wouldn't be 23XI – or Front Row
By Asher Fair
Stewart-Haas Racing announced early in the 2024 NASCAR Cup Series season that they would be shutting down once the season ended, putting them in position to find buyers for all four of their charters for the 2025 season.
One of those four charters was retained by team co-owner Gene Haas, who is set to run a new one-car Haas Factory Team with former Stewart-Haas Racing Xfinity Series (and Cup Series) driver Cole Custer behind the wheel of the No. 41 Ford.
Another one of the four charters went to Trackhouse Racing Team, which had long been discussing expansion. This transaction was fairly straightforward, and the Justin Marks and Pitbull-owned team are indeed set to run a third full-time entry for Shane van Gisbergen, alongside the existing full-time cars for Ross Chastain and Daniel Suarez.
But not much else has been straightforward about this process.
Two-car teams 23XI Racing and Front Row Motorsports each agreed to purchase one charter from Stewart-Haas Racing as well amid plans to expand to three cars.
However, those two teams did not sign the new NASCAR charter/revenue sharing agreement, and they have since been locked in a legal battle with NASCAR after filling an antitrust lawsuit against the sanctioning body and Chairman Jim France.
NASCAR had said that they are prepared to run the 2025 season with 32 charters instead of the usual 36. The problem is that 23XI Racing and Front Row Motorsports had each planned on running three charters, meaning that there were 30, not 32, accounted for.
In essence, two charters were "missing" and without homes for next year, with the start of the 2025 season less than two months away.
Why? Because NASCAR refused to acknowledge Stewart-Haas Racing's transfer of charters to 23XI Racing and Front Row Motorsports. Those transactions both would have been worth upwards of $20 million each, but NASCAR effectively blocked the charter transfers.
So officially, those two missing charters still belonged to a team that no longer exists. While there had reportedly been inquiries about those charters, the offseason is nearing its halfway point, and there are already several potential suitors that have effectively been ruled out.
Richard Childress Racing plan to run a third car, but only on a part-time basis, and while RFK Racing have also expanded from two cars to three like Trackhouse Racing Team, their third charter is being leased to them by Rick Ware Racing, the team with which they have had a technical alliance for two seasons.
Fortunately for everybody, a judge ruled in favor of 23XI Racing and Front Row Motorsports this week, stating that they are allowed to sign the charter agreements while pursuing their antitrust lawsuit against NASCAR.
The preliminary injunction means that these two teams are indeed allowed to race as chartered teams next year using their existing two charters, and it also means that they are both able to purchase a charter from Stewart-Haas Racing, bringing the accounted for charter count back up from 30 to 36.
Unfortunately for everybody, NASCAR has appealed this ruling, and they are aiming to continue to block these two charters from leaving Stewart-Haas Racing for 23XI Racing and Front Row Motorsports.
If NASCAR succeeds, Stewart-Haas Racing could end up being the big loser here.
NASCAR obviously can't force teams to run more cars than they are willing to run. Haas certainly has no plans to run a three-car team, so he has no use for the extra two charters, and the more time that passes, the price tag on these charters is presumably dropping.
23XI Racing and Front Row Motorsports had both planned on running three cars full-time next year regardless, even if all three were classified as open (non-chartered) entries. But the most desirable outcome was always that both of those teams would be able to run three chartered cars to bring the total back to 36.
Based on the ruling earlier this week, that's what should happen, but NASCAR's appeal could still change up the picture.
The Denny Hamlin and Michael Jordan-owned team have already confirmed a third driver, announcing that Riley Herbst is set to join Bubba Wallace and Tyler Reddick.
The Bob Jenkins-owned team are expected to confirm ex-Spire Motorsports driver Zane Smith, who won a Truck Series title for the organization in 2022, alongside Todd Gilliland and ex-Stewart-Haas Racing driver Noah Gragson.
The 67th annual Daytona 500 is scheduled to get underway on Sunday, February 16. Fox is set to provide live coverage from Daytona International Speedway starting at 2:30 p.m. ET.