“Too many unknowns”: Insider on drivers’ future who could be forced to switch teams if NASCAR vs 23XI/FRM lawsuit falls apart

NASCAR Cup Series YellaWood 500 - Source: Getty
TALLADEGA, ALABAMA - OCTOBER 06: Co-owners of 23XI Racing, Denny Hamlin, driver of the #11 FedEx One Rate Toyota, and NBA Hall of Famer, Michael Jordan talk on the grid after the NASCAR Cup Series YellaWood 500 at Talladega Superspeedway on October 06, 2024- Source: Getty

The lawsuit between NASCAR and 23XI Racing, along with Front Row Motorsports, is changing the future of the Cup Series in ways no one can predict. The case, centered on the controversial charter system, could determine whether both 23XI and FRM continue after 2025. If NASCAR wins, many high-profile drivers will be left searching for new rides at a time when there are almost no seats available.

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In recent court filings, 23XI and FRM stated clearly that if their charters are stripped, they will be “out of business following the 2025 Cup Series season.” This puts stars like Bubba Wallace and Tyler Reddick, plus younger drivers Corey Heim and Zane Smith, at risk of losing stable rides.

The uncertainty has already raised alarm in the garage. U.S. District Court Judge Kenneth D. Bell, who is overseeing the case, warned,

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“Hard to picture a real winner if this goes to the mat, or the flag, in this case.”

If 23XI and FRM close, Wallace and Reddick would become top free agents, but the market is nearly locked until 2027. Wallace, who recently won the Brickyard 400, and Reddick, a former Championship 4 contender, could likely land in another organization.

For Heim and Smith, the situation is tougher. Both are viewed as long-term Cup prospects, but insiders note sponsorship and timing could delay their opportunities. Answering a fan question in The Athletic’s NASCAR Mailbag, insider Jordan Bianchi summed up the situation. He said,

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“Predicting where these guys all would land is nearly impossible; there will be teams that don’t currently have openings but will reevaluate their driver lineups if an upgrade is suddenly available. There are too many unknowns.”

The antitrust trial is scheduled to begin on December 1. At issue is whether NASCAR unfairly controls the charter system, which functions like franchises in other sports. Denny Hamlin and Michael Jordan’s team argue the system is stacked against teams, while NASCAR claims the lawsuit is simply fallout from failed negotiations.

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Judge Bell urged both sides to consider a settlement. As sourced via The Athletic,

“Everybody is going to get hurt if this thing goes a certain way. If either party feels certain they’re going to win, they’re wrong.”

If the teams lose, NASCAR can redistribute the six charters tied to 23XI and FRM. That would erase guaranteed starting spots, essentially ending both teams. This could trigger major sponsor shakeups. Wallace’s car carries McDonald’s and Columbia, while Reddick and FRM’s drivers have their own backers. Without 23XI and FRM, those sponsors would have to shift their money elsewhere, leading to financial instability across the series.

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Personal rifts add fuel to NASCAR’s battle with 23XI and FRM

Recently unsealed court records reveal harsh private comments from both sides, underlining how bitter the fight has become. One of the most direct statements came from Denny Hamlin himself. As reported in the filings, Hamlin wrote,

“my despise for the France family runs deep.”
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Court documents also showed emails and texts among NASCAR executives, including Jim France, Steve O’Donnell, and Steve Phelps. In those exchanges, leaders discussed forcing 23XI and FRM to accept terms by giving them contracts with no choice but to sign or lose their charters.

The teams countered with what they called “smoking gun” documents. These included details about NASCAR’s agreements with Speedway Motorsports to block rival events, along with internal plans known as “gold codes.”

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The gold codes, according to the two teams, were a way for NASCAR to stage the Cup Series without team owners by filling the field with Xfinity or Truck teams. Motorsport senior editor Matt Weaver reacted to the revelations, writing on Twitter,

“Court has let out. It’s not an understatement to say the gloves have come off and the mutual animosity and bitterness from both parties spilled over today. To prove likelihood of success, 23XI and Front Row made public the redacted ‘smoking gun’ documents…”

At the heart of the conflict is the value of charters. 23XI and FRM argue they are suing because they love the sport and want fairer financial terms for all teams. NASCAR responds by insisting that charters remain valuable and that the teams are exaggerating their financial problems.

Get the latest NASCAR All-Star race news, Xfinity Series updates, breaking news, rumors, and today’s top stories with the latest news on NASCAR.

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Edited by Tushhita Barua
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