23XI Racing and FRM reportedly face big blow in their court case against NASCAR

23XI Racing and Front Row Motorsports' future in NASCAR may be on the line following a court hearing on Friday. Per AP News, the injunction allowing the teams to compete with the charter benefits could be overturned.

For context, the injunction, approved last December, made 23XI and FRM temporary chartered teams for the 2025 season despite them refusing to sign the charter extension deal, citing unfair monopolistic practices and the rule forbidding teams to sue NASCAR. A charter guarantees entry to all 36 races and provides massive payouts.

However, a three-judge panel in the U.S. Court of Appeals in Virginia thought the district court erred in issuing the injunction. The panel also told the plaintiff's attorney, Jeffrey Kessler, that the teams should sign the charter agreement to race full-time in the stock car racing series.

The latest development was shared by NASCAR Insider Jenna Fryer on X (formerly Twitter). She wrote:

"Judges indicate they may throw out order allowing 23XI, Front Row to race as #NASCAR chartered teams."

If the court overturns the injunction, 23XI Racing and Front Row Motorsports would have to qualify to make the starting lineup. In doing so, the teams could lose some of their sponsors as they are not guaranteed to make an appearance on the track. Moreover, the plaintiffs would lose their guaranteed payouts, affecting the livelihood of their team members, including the drivers.

23XI, co-owned by veteran NASCAR driver Denny Hamlin and NBA Hall of Famer Michael Jordan, fields Bubba Wallace and Tyler Reddick in the #23 and #45, respectively. The Toyota-affiliated team also added Riley Herbst (#35) to its third new car acquired from the now-defunct Stewart-Haas Racing.

Tyler Reddick took the #45 Toyota Camry to the Championship 4 last year - Source: Imagn

Meanwhile, FRM has a younger driver lineup consisting of Noah Gragson (#4), Todd Gilliland (#34), and Zane Smith (#38). Both Gragson and Smith are the Ford camp's newest recruits, made possible by an expansion to three cars, with the #38 ride also from SHR.

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"The drivers could leave": NASCAR Insider on possibility of 23XI Racing, Front Row Motorsports drivers leaving amid charter dispute

Following the recent court hearing, veteran NASCAR reporter Bob Pockrass weighed in on the situation of 23XI Racing and Front Row Motorsports drivers. He argued that the drivers could leave their respective teams, given that they signed a contract for a full-time ride.

Responding to a fan question about the matter, Pockrass wrote on X:

"They wouldn't have to release drivers but team contracts with drivers require a chartered car so theoretically the drivers could leave 23XI/FRM if they are open teams. Whether they would or not is TBD (depending on how contract structured, could be less $ b/c open makes less $)."

While the lawsuit continues to develop, the court has scheduled a trial in December, after the 2025 season. The court looks to conclude the case before the next season commences. Of the 15 chartered Cup teams, 23XI and FRM are the only ones facing NASCAR in the ongoing lawsuit battle.