Two teams have been standing apart this season, but not for the reasons you would hope for. While most teams have signed NASCAR’s new charter agreement, securing guaranteed race spots and steady payouts, Front Row Racing and 23XI Racing chose a different path. They sued NASCAR over antitrust grounds owing to the charter disagreement and even bagged the injunction to run as chartered teams until the lawsuit was settled. However, NASCAR wasn’t going to let this slide and reached out to the Appeals court to fight this decision.

The two teams have enjoyed the perks of being a chartered team so far this year, but that might not last any longer. A three-judge federal appellate panel last week ruled in favor of NASCAR and chalked off the chartered team status both 23XI and FRM enjoyed so far. The implication of this ruling stretches well beyond the starting position on the grid, and with the hearing date between the two parties scheduled for December 1, a lot could unravel during this time. Dale Jr. took stock of the situation and stated this was indeed a surprising win for NASCAR, while touching upon the potential impact this decision could have on the two teams.

Michael Jordan and Denny Hamlin might have to brace for a financial hit

To understand how things reached this point, you have to rewind to last September at Atlanta Motor Speedway. That’s when NASCAR gave teams a final charter proposal, with a 6-hour deadline to sign. The stakes were high; NASCAR allegedly wants to eliminate the charter system entirely for 2025 and beyond if teams don’t comply. While most teams caved, 23XI Racing and Front Row Motorsports held their ground. They wanted permanent charters, something NASCAR refused to offer despite the proposal including a nearly 50% bump in revenue from NASCAR’s $1.1 billion per year TV deal; they opted out. That holdout laid the groundwork for the antitrust lawsuit, which is now unfolding. But without the injunction, the teams are essentially riding on two wheels instead of all four. And that has got Dale Jr. worried.

“They might get outqualified, I’m not worried about that. I’m more worried that the financial burden that this places on the team. They have a budget at the start of the year, anticipating the money that charter brings in. That’s why they wanted to race as chartered teams, they need that money. While they are going to survive it, it’s going to be difficult financially, and they are taking that risk,” Jr. stated on DJD. Being a team owner at JRM, he understands the risks that are involved with this scenario and the stakes are even higher for a Cup team that has obligations to sponsors, drivers and their employees.

And why does that matter? The reason this matters is plain and simple: it’s because money is involved. Dale Jr. goes on to emphasize that having a charter guarantees teams a substantial share of NASCAR television revenue, adding up to tens of millions across the season. In Denny Hamlin’s case, he estimated that each charter could bring in anywhere from $10 to $15 million. If 23XI Racing had signed the new agreement, they’d likely be pocketing that income right now. They had their way with the injunction until now, but the road ahead is going to be difficult.

Dale Jr. called it AS: “a big win for NASCAR.” But he also reminded listeners that this is only one part of the much larger legal battle.. He says, “I did not—in my opinion—it’s a big win for NASCAR. Denny takes the approach that it’s just a small part of the bigger picture in terms of the lawsuit, which he’s correct. The lawsuit is about the charter system. They want a lot of things different than NASCAR does in how the charters are handled.”

It has to be noted that the drivers under the contract at 23XI Racing and FRM could be free agents, and that might reignite the silly season drama. Moreover, there’s no clarity on what will become of the two Stewart-Haas Racing charters, which are reportedly worth $45 million each. NASCAR might list them out on the open market, and this would only add to the financial woes of the team owners. There are a lot of ifs and buts surrounding the current scenario, but for now, NASCAR seems to be in control in this legal tussle.

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Denny Hamlin remains unfazed by the court ruling

Despite the noise surrounding the veteran JGR driver, he seemed unfazed when he put on the helmet and took on the wheel at Michigan. Not only did Hamlin race with clarity, but he also bagged his third win and his career’s 57th. Just when it looked like he had the weight of the world on his shoulders, he channeled it into motivation and silenced his critics at the Irish hills. And he remained calm and composed when Kevin Harvick asked him about the charter situation.

“Yeah, listen, it is hard to win everything. There’s so many emotions and this and that go in litigation. I’ve got a really big education on it over the last eight months we’ve been doing this. But certainly, we’ve remained committed to running our cars, whether it’s chartered or open. We’ve said this the entire season that we’re going to be racing no matter what. We’re going to have our day in court, December, and we look forward to that day,” Hamlin said on Victory Lap.

The question is, how long can 23XI Racing keep turning the wheel against the odds? If the revenue streams dry up, how long will they continue to field open cars? And will their current drivers stay committed, knowing the uncertainty surrounding the organization?