NASCAR’s lawsuit has been taking sudden turns every week. In mid-July, both 23XI Racing and Front Row Motorsports petitioned a U.S. District Court judge for a temporary restraining order and preliminary injunction to protect their coveted Cup Series charters for the remainder of 2025. These legal instruments sought to halt NASCAR from selling or repurposing the charters, for the teams to guarantee race entry and revenue-sharing. Without them, the teams warned of “irreparable harm,” citing the risk of jeopardizing sponsorship commitments, driver contracts, and long-term competitiveness.

On July 17, U.S. District Judge Kenneth Bell denied the TRO request, determining that the teams had not demonstrated imminent harm and noting NASCAR’s assurance that charters wouldn’t be sold or used before the preliminary injunction ruling. “We made the decision to bring this lawsuit to challenge NASCAR’s monopolistic practices and bullying tactics, and we are not going to let them push our teams – or others – out of the sport that they love,” said Jeffrey Kessler, the teams’ attorney, in a statement. “We are confident in the merits of our case and the teams remain focused on competing this weekend and continuing their playoff push.”

As a result, the teams’ vehicles at Dover and Indianapolis will race as “open entries, albeit with full qualification chances intact for now. But despite the bitter loss and the situation of losing out on their charter, Denny Hamlin aimed shots at NASCAR in this legal tussle.

Denny Hamlin’s legal gamble builds toward December reveal

At the heart of the dispute is the clause in Reddick’s contract and the broader issue of charter agreements, which effectively grant teams guaranteed race entries and revenue share. Denny Hamlin, co-owner of 23XI Racing, has refrained from addressing the specifics of Tyler Reddick’s contract clause or any potential team poaching. The Athletic’s Jeff Gluck wrote on X, “I also asked Hamlin if he is worried Tyler Reddick could now be lured away by another team (due to the clause in Reddick’s contract that says 23XI must provide him with a chartered entry): “I don’t have any direct comment to that.”

Reddick’s 2024 contract with 23XI Racing reportedly includes a pivotal clause: if the team fails to secure a chartered car for him, one that guarantees entry prize money, he has the legal leverage to become a free agent and explore other opportunities. But Hamlin offered a pointed promise to clarify matters in the courtroom. “All I can tell you, and this will just be my blanket answer for all questions about this, is that if you want answers, you want to understand why this is all happening, come December 1st. You’ll get the answers that you’re looking for and all will be exposed.”

Tyler Reddick has already endured a solid but winless 2025 Cup Series campaign, currently sitting 4th in the standings with 615 points, five Top-5s, and eight Top-10 finishes through 20 races. His season highlights include a dominant pole at Circuit of The Americas, a second-place finish at Atlanta, and impressive top-tier runs on both street and road courses. Though Reddick’s consistency has kept him playoff-bound, the lack of victory has left his team and fans hungry for a return to the winner’s circle.

The recent revelation about Reddick‘s contract has raised the stakes significantly. Recently, NASCAR said in a statement, “There is no credible risk or even threat that any of the Plaintiffs’ drivers will leave mid-season, let alone over the next two weeks. None of their evidence even makes that claim.” But if NASCAR puts the charters on the market, there is a threat of rival camps poaching Reddick from 23XI Racing. And why wouldn’t they? He is a championship-contending driver.

“There are numerous teams in the garage who have looked at this situation and said, ‘We would love to have Tyler Reddick in our race car,'” Jordan Bianchi said in the ‘Teardown’ podcast. “Do I think anything will happen in the middle of the season? I do not. For a lot of reasons, I don’t think you would expect to see anything midseason. There are too many hoops to hop through; it gets messy and complicated.” But amid these dynamics, Bubba Wallace, with a similar exit clause, parks in a parallel lane. While Reddick navigates legal landmines, Wallace is focused on performance, entering the 2025 season ranked 14th with 3 Top-10s to date.

Despite the legal turbulence, Hamlin and Michael Jordan remain defiant and confident about their team’s future. His statement underscores 23XI Racing’s commitment to transparency and indicates that the most important revelations are still months ahead, even when the 7-day window is now over. But this clause adds significant weight to 23XI’s legal fight to retain their charters, if they do not get a restraining order or a new injunction, there is a possibility of Reddick leaving the #45 team.

Can Denny Hamlin overcome off-track distractions in time?

Denny Hamlin is having one of the most successful Cup seasons in recent memory, already securing three wins as he aims for an elusive championship at age 44. But this might also be his most complicated year yet. While his performance on the track signals a potential for a deep playoff run, the off-track legal drama with NASCAR is threatening to unravel everything he has built.

As legal proceedings intensify, speculation about how it impacts the team is growing louder. FOX Sports’ Bob Pockrass told Kevin Harvick on the ‘Happy Hour’ podcast, “I think the biggest discussion, or the biggest impact would be theoretically, without a charter, drivers can become free agents because their contracts typically require a charter car. Now, do you expect any of them to leave? No, but you know, Tyler Reddick, pretty darn good driver, and you would think that if there is a chance he’s available, a team could potentially make an offer for him, you know. Does that become another distraction for Denny and their team to have to go through that? Possibly.”

The looming deadline in December could upend the entire 23XI and FRM structures. If Hamlin wants to stay locked in on championship contention, he must compartmentalize and manage pressure on multiple fronts. With 6 races left until the playoffs, there is still little room for distraction, and no margin for legal missteps.