Disaster strikes for 23XI and FRM as federal court reverses its decision against NASCAR

There were just two things that 23XI Racing and Front Row Motorsports filed last Monday: a preliminary injunction and a temporary restraining order against NASCAR. However, on Thursday evening, the federal court denied their request for a preliminary injunction, as per reports.

This is because the teams will compete over the next couple of weeks without losing their sponsors; there won’t be irreparable harm, and therefore, they will not be issued a restraining order. It’s now confirmed that 23XI and FRM will participate in the upcoming events at Dover Motor Speedway and Indianapolis Motor Speedway as open teams.

Bob Pockrass of FOX Sports reported the news through X (formerly known as Twitter). He wrote,

“23XI Racing and Front Row Motorsports will be open teams for at least upcoming races at Dover and Indianapolis after they were denied a temporary restraining order to keep NASCAR from revoking their chartered status.”

“The judge said because they will make races over the next couple of weeks and because they won't lose their drivers or sponsors before a decision on preliminary injunction, there isn't irreparable harm and therefore teams can't get temporary restraining order,” he added.

The court mentioned that the only reason it was denying the filing for a temporary restraining order was that NASCAR agreed not to sell off the charters (previously owned by the teams) before a final ruling on the preliminary injunction is reached. The three 23XI cars and the three FRM cars are, hence, assured of qualifying in the next two weeks.

As things stand, the teams remain confident in the merit of their case. For now, they will continue pushing toward the playoff rumble, which will kick off with the Round of 16 opener at Darlington Raceway, scheduled for August 31.

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NASCAR commissioner gets real about meeting 23XI and FRM’s demands

NASCAR commissioner Steve Phelps during Daytona 500 media day at Daytona International Speedway on February 12, 2025 - Source: Imagn

In a recent interview with PUCK, NASCAR commissioner Steve Phelps said that he wasn’t sure what 23XI and FRM were suing the sport for. To him, it’s not an antitrust lawsuit but a contractual dispute.

Backing his claim, Phelps said that NASCAR was providing the teams (that signed the new charter deal) exactly what they always wanted: more money. Now, NASCAR is either going to settle or battle it out in court.

“We had 13 of the 15 charter holders representing 32 teams sign,” Phelps explained. “On balance, if there are winners and losers to the charter extension, I think the teams won.”

“Do I think we’d be willing to entertain a settlement? Yeah. To date, they have not come with anything. I don’t even know what their demands are. I don’t even know what they’re suing for,” he added.

As the legal saga continues, the drivers get ready for the 21st race of the season. Named the AutoTrader EchoPark Automotive 400, the 400-lap feature will be televised on TNT Sports with radio updates on PRN and SiriusXM NASCAR Radio. Notably, Denny Hamlin, who owns 23XI Racing, is the defending winner of the event.