No halt for 23XI Racing, FRM in 2025 even with charter loss: Reports

23XI Racing and Front Row Motorsport's non-compliance with NASCAR regarding the latest Charter deal sent ripples across the NASCAR fraternity. On top of that, the two organizations' decision to file a lawsuit against the governing body recently sent further shockwaves within the sport.

After signing a massive $7.7 billion worth of broadcasting deal last year, NASCAR announced a new charter agreement for all teams to follow from 2025 to 2031. While most of the teams signed the new agreement, 23XI and FRM did not. They not only did not comply with the terms but also called NASCAR's move on the Charter deal as unfair.

Since the organizations did not sign the charter deal, their existing charters have now come in jeopardy. The drives of Tyler Reddick, Bubba Wallace, Michael McDowell, and Todd Gilliland have no future for now since things hang in the balance with a potential for a charter loss.

On top of this, 23XI and FRM filed an anti-trust lawsuit against NASCAR and alleged them of running the sport with unfair advantage. This complicated the entire situation further and brought the organization's future in doubt.

Questions began to arise if 23XI Racing and Front Row Motorsport would lose their Cup Series entry in 2025 under such a situation. According to Curtis Polk, the co-owner of 23XI Racing, and longtime associate of Michael Jordan, the plan is to continue racing.

"23XI plans to race next year," Polk said as per Bob Pockrass' column on Fox Sports. "We plan to continue to go through with all the things that we were planning before this lawsuit. Our business model is going to move forward, and we were going to continue to grow and compete at the highest level."

Front Row Motorsport's owner, Bob Jenkins, reiterated the same.

"We made a commitment to our teams and staffing people and preparing for 2025. So we're full speed ahead either way," Jenkins said.

Besides this, 23XI Racing and Front Row Motorsport agreed to take one charter each from defunct Stewart-Haas Racing from next year. NASCAR put a hold on the transfer of the charter amid the current situation, complicating the situation further.

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23XI Racing and Front Row Motorsport seem confident about the lawsuit

23XI co-owners Michael Jordan talks with Denny Hamlin - Source: Getty Images

As 23XI Racing and Front Row Motorsport filed a lawsuit, their stance on the case seems stronger. Going by the words of Jeffrey Kessler, a renowned lawyer whom the teams hired for his expertise in such complicated cases, the teams will look to keep competing in the sport.

"Our clients are in this to the end — what that's going to be is going to depend on what the courts rule and allow," Kessler said. "But they are going to do their best to keep competing as long as they can. And we expect that to add to the legal victory or the settlement that transforms this sport."

NASCAR is yet to respond to the charter deal dispute.