NASCAR states that there “are many eager potential entrants” who want to obtain Cup charters and cite that as among reasons why a judge should not grant 23XI Racing and Front Row Motorsports a preliminary injunction to receive benefits of a charter team for the rest of the season.
Denying the preliminary injunction could allow NASCAR to begin the process of selling the six available charters 23XI Racing and Front Row Motorsports claim they have a right to.
An Aug. 28 hearing is scheduled on a request by 23XI Racing and Front Row Motorsports to be granted a preliminary injunction so they receive the benefits of a charter team despite not signing the charter agreement last year.
This is the third time the teams have sought a preliminary injunction for charter status. The first attempt was denied in November. The second attempt was granted in December but the Fourth Circuit Court of Appeals overturned that decision in June — a ruling that went into effect ahead of the Dover race in July.
Since Dover, 23XI Racing and Front Row Motorsports have competed as open teams and do not receive the financial benefits of a charter team.
Saturday night’s race will air on NBC and Peacock.
The teams seek a preliminary injunction to restore the benefits they had earlier this year through the end of the season. 23XI Racing and Front Row Motorsports each received the benefits of three charters. 23XI Racing employs drivers Bubba Wallace, Tyler Reddick and Riley Herbst. Front Row Motorsports employs drivers Todd Gilliland, Zane Smith and Noah Gragson.
The lawsuit by 23XI Racing and Front Row Motorsports against NASCAR is scheduled to go to trial Dec. 1.
In court documents late Monday, NASCAR noted that with the trial expected to last two to three weeks, it would prove difficult for some groups that purchased the charters after the trial to be ready for the start of the season.
“If the fate of these six Charters is not resolved until after the trial concludes in mid-December 2025, it will be impossible for a new team to gear up for the 2026 season,” NASCAR stated in court documents.
“New owners would require more time than that to adequately prepare for the first and most significant points race of the season—the Daytona 500—scheduled for February 15, 2026. From prior experience, NASCAR estimates that a new entrant would need to begin its preparation process by no later than October 1 to ramp up for a competitive entry in the 2026 Cup Series.”
Tyler Reddick finished 34th after his car was damaged in an incident at Richmond.
As for potential new owners, NASCAR stated in court documents: “NASCAR has a unique opportunity to bring in new teams that would delight fans and inject valuable innovation and investment into the sport. These are aspiring entrants that have a passion for motorsports, have infrastructural support behind them, and have histories of on-the-track success. It would benefit fans, other teams, broadcast partners, and the Cup Series generally to bring in these new teams.”
NASCAR also noted that 23XI Racing and Front Row Motorsports each acquired a charter from Stewart-Haas Racing last year. Should NASCAR win the trial and those charters be available for reissue, those charters would be subject to a 30-day bidding process open to qualified existing charter holders.
“Beginning that 30-day process after a December trial, would not permit a team to put that Charter to effective use by the February 2026 start of the 2026 Cup Series season,” NASCAR stated in court documents.
NASCAR redacted any reference to who the interested parties could be for these charters if they become available.
“There are many eager potential entrants who want to obtain Charters, including organizations from other motorsports who recognize the value that NASCAR offers and want to help grow the sport for the betterment of fans, media partners, tracks, NASCAR, and Charter Teams,” NASCAR stated in court documents.
Also in the court documents, NASCAR noted:
— In the 2016 charters, NASCAR increased annual payments to teams by 28% on average over the pre-charter period.
— In the 2025 charters, NASCAR increased those payments by another 62% for the 2025-2031 period.
— NASCAR pays a higher percentage of its operating income to charter teams than Formula 1 pays to its teams.