"We'll defend NASCAR's integrity": Jim France's team slams 23XI and FRM over 'baseless' charter fight

In a bold escalation of NASCAR's charter dispute, the governing body released a sharp statement Monday morning. The notice came after 23XI Racing and Front Row Motorsports filed an urgent motion to preserve their Cup Series charter status, with just days remaining before the teams risk being officially classified as 'open teams' for the upcoming Dover race.

Both teams petitioned a U.S. District Court for a temporary restraining order and preliminary injunction, warning that NASCAR's looming revocation plan would cause irrevocable damage. The two organisations argue that NASCAR intends to sell or reassign its charters imminently. They claim the move could destroy their businesses, sever sponsor ties, and trigger driver contract terminations. Bob Pockrass took to X to announce the appeal:

"NASCAR has signaled its intention to immediately move to sell or issue Plaintiffs' charters to other entities - putting Plaintiffs in irreparable jeopardy of never getting their charters back and going out of business."

The dispute follows a decisive June 5 ruling by the Fourth Circuit Court of Appeals, which overturned an earlier injunction that had protected 23XI and FRM’s charter rights. That decision reinstated NASCAR's authority to revoke the charters both teams had purchased from Stewart-Haas Racing in 2024, asserting that the sanctioning body's controversial release clause did not constitute exclusionary behaviour under U.S. antitrust law.

Steve Phelps and Steve O'Donnell during the annual State of the Sport address at Phoenix. Source: Getty

With the appellate court denying a rehearing request on July 9, the clock began ticking. The teams are now banking on a final legal lifeline ahead of the July 16 mandate deadline. NASCAR's response, delivered with sharp language, accused the teams of delaying progress through litigation.

"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... We'll defend NASCAR's integrity from this baseless lawsuit forced upon the sport that threatens to divide the stakeholders committed to serving race fans everywhere," the league stated (via NBC).

The organisation doubled down on its support from the majority of teams in the Cup Series, reminding the public that '13 race teams signed the 2025 charter agreements' and emphasising its priority of collaboration.

"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 statement added.

For now, 23XI Racing's Tyler Reddick, Bubba Wallace, and Riley Herbst, and Front Row Motorsports' Todd Gilliland, Noah Gragson, and Zane Smith await a court ruling that could determine their operational futures.

Their filing paints a grim picture. Losing the charters could result in driver exits, sponsor losses, and an inability to compete long-term as open entries. With a December 1 trial date looming, the next few days could define not just their 2025 season but the long-term trajectory of two mid-tier organisations.

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NASCAR Charter vs open status: What 23XI Racing and FRM risk losing

Chairman Jim France with Denny Hamlin at Darlington. Source: Getty

As the July 16 deadline approaches, the practical implications of losing charter status come into sharp focus for both teams. Should the court deny the temporary restraining order, 23XI Racing and Front Row Motorsports would be demoted to 'open' team status beginning this weekend at Dover Motor Speedway.

Chartered teams are guaranteed entry into every race, receive a bigger share of NASCAR's $7.7 billion media rights revenue, and carry organisational stability that makes long-term planning possible. Open teams, by contrast, must qualify on speed each week, earn significantly less in race payouts, and face constant uncertainty.

Since the charter system was introduced in 2016, teams have treated these licenses as core business assets, with some charters reportedly selling for over $40 million. That's why the sudden threat of revocation has sent shockwaves through the Cup garage.

NASCAR's stance is that 23XI and FRM, by refusing to sign the 2025 Charter Agreement over concerns about a legal release clause, forfeited their rights. The teams argue that agreeing to such a clause would have prevented them from challenging a structure they view as monopolistic.

But NASCAR, citing multiple court victories, believes its authority is justified and wants to draw a clear line. The league insists it offered opportunities for settlement discussions, but that the plaintiffs have instead chosen prolonged legal entanglement.

Should the injunction be denied and the charters revoked, both teams may need to shift drivers or reconfigure operations to stay afloat. Their argument that no Cup team can economically survive long-term as an open entrant will now face direct scrutiny in court and on the track.