NASCAR Insider says 23XI and FRM driver exodus possible after court’s ultimatum

A recent court ruling in the ongoing legal battle between NASCAR and Cup Series teams 23XI Racing and Front Row Motorsports (FRM) could lead to major changes. It could possibly result in the departure of drivers from both teams, according to NASCAR insider Bob Pockrass.

A hearing of the lawsuit, which started in October 2024, was held 8:30 am ET, Friday (May 9). After the hearing, Pockrass noted that judges seemed concerned about the teams wanting to keep their charters while suing NASCAR under antitrust laws. The judges questioned whether teams should either accept the charter and its rules or give it up and sue while racing as open (non-chartered) teams.

Responding to a fan's question about whether drivers would be released if the teams lost their charters on X, Fox Sports' Pockrass shared that driver contracts are tied to having a chartered car.

"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 $)," Bob Pockrass wrote on X.

In other words, if 23XI and FRM lose their charters and are forced to run as open teams, they would receive less revenue. As a result, drivers may have the option to walk away, depending on how their contracts are structured.

The court had earlier earlier passed an injunction that gave the two teams the rights to compete in the 2025 Cup season as chartered teams. However, the teams did not sign the new charter aggrements, which were presented in September of last year.

NASCAR later appealed the decision to the court in Richmond, Virginia and Friday's hearing was about the same injunction.

"Hearing is over. Judges seemed troubled that 23XI/FRM trying to have cake (be chartered) & eat it too (sue under antitrust violations) & whether not-to-sue clause in charter agreement is violation of antitrust law. Implied either sign charter or sue for damages while racing open," Pockarss wrote in an earlier tweet.

The lawsuit trial is set for December 1.

Court ruling to allow NASCAR to add allegations

Another recent ruling by a judge allowed NASCAR to amend its March 5 counterclaim. The sanctioning body now reportedly has the permission to add new allegations.

NASCAR had claimed that 23XI Racing co-owner Curtis Polk led the plan, including trying to organize a boycott of the 2024 Daytona Duel races. It also called this an illegal "cartel" and said the teams had colluded to gain better terms in the ongoing charter negotiations.

The judge also asked both parties whether other chartered teams should be added to the lawsuit under federal rules. This could mean that the lawsuit be expanded to include other Cup Series teams as well.