23XI Racing, FRM warn of shutdown after 2025 season if NASCAR sells charter to someone else: Reports

NASCAR analyst Bob Pockrass recently dropped a major update on the ongoing lawsuit between 23XI Racing, Front Row Motorsports, and NASCAR. The situation initially arose when both Cup Series teams refused to sign the new charter agreement in October last year and filed an antitrust lawsuit against the governing body.

The Cup Series teams accused the NASCAR CEO, Jim France, of monopolizing the sport. Following a series of hearings, in July 2025, the court refused the team's request for a restraining order and ruled in favor of NASCAR, thereby stripping the teams of their charters. Since then, both 23XI and FRM have been running as open teams in the Cup Series.

According to a report shared by FOX Sports, NASCAR plans to issue charters to a team for the 2026 season, and 23XI Racing and Front Row Motorsports have claimed that if their charters are sold, they would shut down "following the 2025 Cup Series season." However, the governing body hasn't announced the name of the team getting the charters for the 2026 season.

Reflecting on the same, Bob Pockrass wrote:

"NASCAR says it plans to issue a charter to a team (that it didn’t name) for 2026 while 23XI and Front Row Motorsports said if the charters they had earlier this year are sold, they would shut down "following the 2025 Cup Series season."

Following that, ahead of the (August 28) hearing, 23XI Racing and FRM are seeking another injunction and to be recognized as chartered teams for the rest of the 2025 season. Reflecting on the same, the teams mentioned in their appeal:

"This court has already found that it is not economically viable to race as open teams on a long-term basis ... and NASCAR did not challenge that finding on appeal." (via FOX Sports)

The 2025 Cup Series season still has ten weeks to go, and as things stand, 23XI Racing and Front Row Motorsports will not receive the financial boost that comes with having charters. Additionally, chartered teams are guaranteed spots in the race after a rule change by the governing body in summer 2025.

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“We didn’t ask for this”: NASCAR president Steve O'Donnell got candid about the 23XI Racing lawsuit

A few days earlier, NASCAR president Steve O'Donnell was featured in an interview with stock car YouTuber Eric Esteep on his Out of the Groove podcast. During the interaction, O'Donnell shared his thoughts on the ongoing lawsuit between 23XI Racing, Front Row Motorsports, and NASCAR.

On the podcast, Esteep questioned the sanctioning body president about his views on the same. Steve O'Donnell expressed "disappointment" in the Cup Series teams for suing the racing organization and told the host:

"I can't get into the specifics, right, of the litigation, but uh it's important that uh I think everyone knows, you know, teams sued us, right? We didn't ask for this. Um, we're still not sure what they're even asking for. Um, candidly, in terms of an outcome, what we've seen really doesn't have anything to do with why the lawsuit was brought. So it's a little bit perplexing." [33:50 onwards]

"Um, but I think at the end of the day, um, you know, NASCAR is certainly going to, you know, we've got an 80-year history for our sport. We've got owners who are, uh, you know, signed up with charters, and we're working hard every day to grow the sport. And I think what's probably most disappointing, even for me personally, is, you know, we're spending time on this topic versus growing the sport. And, you know, I'm not sure our fans, you know, want to hear about lawsuits a lot of times," he added.

The drivers affected by the decision include Bubba Wallace, Tyler Reddick, and Riley Herbst of 23XI Racing. Followed by Todd Gilliland, Zane Smith, and Noah Gragson from Front Row Motorsports. Additionally, the lawsuit is set to go on trial in December 2025.