NASCAR insider weighs in on 23XI and FRM potentially hitting the "panic button"

As the July 16 deadline looms, NASCAR's escalating charter crisis has entered a decisive phase. After weeks of legal uncertainty, 23XI Racing and Front Row Motorsports face the very real prospect of showing up to Dover as open teams.

The situation intensified Monday as the two teams filed an emergency motion in U.S. District Court, seeking a temporary restraining order and a renewed preliminary injunction. They argue that NASCAR's plan to revoke their charters would cripple their businesses.

On the latest episode of Kevin Harvick's Happy Hour, NASCAR insider Bob Pockrass assessed just how close 23XI and FRM are to disaster.

"Right now, I would say things are a little rocky, but I don't think it's time to hit the panic button yet. Both sides are still taking depositions. They're getting all their discovery done, and I think it'll be another couple months before you really get a feel for which way this case could go. If I'm a 23XI or Front Row fan, I'm just kind of crossing my fingers to get through the rest of this year with not too much drama and then see what happens in the off-season," Pockrass said. (32:50 onwards)

The two teams' legal gamble began after they bought charters from Stewart-Haas Racing earlier this year but refused to sign the league's new charter agreement. In June, the Fourth Circuit Court of Appeals ruled in NASCAR's favor, reinstating its ability to revoke the charters and confirming the league's controversial release clause wasn't anticompetitive.

With the appellate court denying a rehearing on July 9, the pressure mounted. The teams petitioned for immediate relief, seeking to delay NASCAR's move to reassign or sell their charters. On Monday (July 14), they pushed for the court to compel NASCAR to respond by Tuesday. The league, however, requested more time and now has until 5 p.m. ET on Wednesday to file a response.

That means the earliest possible ruling on the restraining order and the fate of these two teams won't arrive until Thursday, just ahead of the Dover race weekend. Until then, 23XI Racing and Front Row Motorsports drivers hang in limbo.

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NASCAR and the teams fire back with opposing views on the sport's future

NASCAR Cup Series drivers meeting at Kansas Speedway on May 11, 2025. Source: Getty

The consequences of this dispute ripple far beyond garage politics. Losing their charters would not only jeopardize millions in revenue and sponsor commitments, but it could also affect driver contracts. As Bob Pockrass explained on the podcast, most Cup Series driver deals are predicated on the team fielding a chartered car.

Without one, a driver could technically become a free agent. While no departures are expected imminently, Pockrass acknowledged the uncomfortable truth:

"Without a charter, drivers probably become can become free agents because their contracts typically require a charter car. Now do you expect any of them to leave? No. But, Tyler Reddick - pretty darn good driver. And you would think that if there is a chance that he is available a team potentially could make an offer for him." (35:55 onwards)

Meanwhile, NASCAR issued a sharply worded statement defending its position and accusing the plaintiffs of disrupting progress. Posted via NASCAR Communications on X, the league said:

NASCAR Communications

@NASCAR_Comms

LINK

NASCAR Statement Regarding 23XI Racing and Front Row Motorsports Filing:

“It is unfortunate that instead of respecting the clear rulings of the Fourth Circuit, 23XI Racing and Front Row Motorsports are now burdening the District Court with a third motion for another unnecessary and inappropriate preliminary injunction. As both the Fourth Circuit and the District Court suggested, NASCAR has made multiple requests to 23XI Racing and Front Row Motorsports to present a proposal to resolve this litigation. We have yet to receive a proposal from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit. We will defend NASCAR’s integrity from this baseless lawsuit forced upon the sport that threatens to divide the stakeholders committed to serving race fans everywhere. We remain focused on collaborating with the 13 race teams that signed the 2025 charter agreements and share our mutual goal of delivering the best racing in the world each week, including this weekend in Dover.”

The teams, however, painted a very different picture in their joint legal filing (via Jayski):

"New information surfaced through the discovery process that overwhelmingly supports our position that a preliminary injunction is legally warranted and necessary. The teams' love of stock car racing and belief in a better future for the sport for all parties – teams, drivers, employees, sponsors, and fans – continues to motivate their efforts to pursue this antitrust case."

Whether that 'better future' is still attainable likely depends on how the court views this week's motion. A favorable ruling would preserve chartered status through 2025, giving 23XI and FRM time to make their full antitrust case in the trial scheduled for December 1. A denial, on the other hand, could have wide-ranging implications for drivers, sponsors, and the competitive makeup of the Cup grid.

For now, both organizations are preparing to compete at Dover Motor Speedway under a cloud of uncertainty.