23XI Racing and Front Row Motorsports are two teams in NASCAR that have decided not to sign the Cup Series Charter agreement. Despite this, they still intend to compete in the 2025 season. Bubba Wallace and Tyler Reddick are set to race for 23XI, while Noah Gragson has been confirmed for Front Row Motorsports. The teams are moving forward with their plans and are committed to growing and competing at the highest level.
The teams are requesting a preliminary injunction that would allow them to operate under the 2025 Charter agreement while their antitrust lawsuit against NASCAR is ongoing. They want to benefit from the Charter’s perks, such as guaranteed starting positions in each race and financial incentives, without being bound by the rules of the agreement. Specifically, they do not want to give up their antitrust claims against NASCAR while still enjoying the benefits they declined to sign for.
In their lawsuit, 23XI Racing stated that they had acquired two Charters, one in 2020 and another in 2021, from Cup teams that had gone out of business. They claim to have invested around $30 million in the team by the end of 2021. Front Row Motorsports, on the other hand, received two original Charters from NASCAR in 2016 and signed extensions that expire in 2024. Despite making the playoffs in 2021 and 2023, the team claims to have never turned a profit.
Both teams have also purchased Charters from Stewart-Haas Racing, which has signed the new Charter agreement. These transactions are still pending approval from NASCAR and are in escrow. While Stewart-Haas Racing is set to close at the end of the season, they had to sign the agreement to keep their Charters valid for the 2025-2031 seasons. This situation highlights the complex nature of NASCAR’s Charter system and the legal battles that can arise between teams and the organization.
