A three-judge panel reversed the decision, allowing 23XI Racing and Front Row Motorsports to run as chartered organizations in 2025, on June 5. The preliminary injunction was no longer protecting the two teams after they didn’t sign the charter deal and took NASCAR to court over charter disagreements. The clock was ticking on the team owners, and they resorted to the last-ditch efforts of appealing the decision.

“Today, we filed a petition with the U.S. Court of Appeals in the Fourth Circuit requesting a rehearing before the full court… the panel’s decision does not address the merits of our case,” Jeffery Kessler, the attorney for both 23XI and FRM said in a statement. However, given the latest development, it feels that the efforts to revoke the decision over the injunction might not be fruitful for Michael Jordan and his partners.

Jeff Gluck shared an update on the appeals filed by the two teams on X: “23XI and Front Row’s request for the entire Fourth Circuit Court of Appeals to rehear their case — not just the three-judge panel who overturned the preliminary injunction — has been denied. Next steps are unclear, but the teams could lose charter status in seven days.”

Jeffery Kessler shared the statement over this decision, “We are disappointed by the Fourth Circuit Court of Appeals decision to deny our request for a full rehearing. This decision has no bearing on the strength of our antitrust case, which we look forward to presenting at trial. We are committed to racing this season as we continue to fight for more competitive and fair terms for all teams to ensure the future of the sport, and remain fully confident in our case.”

If the current status of the appeal does not change, both 23XI Racing and Front Row Motorsports could lose their charters heading into the Dover race weekend. As the charter clock ticks down, NASCAR’s broader counteroffensive intensifies the pressure. On March 5, 2025, NASCAR filed its own countersuit against 23XI and Front Row, accusing them of “willfully violating the antitrust laws by orchestrating anticompetitive collective conduct” when they refused to sign the 2025 charter agreement.

That filing seeks triple damages and demands up to 11 years of financial records. A move 12 other Cup teams warned would be “catastrophic” if forced public. Combined, these parallel battles threaten not only charter status but also the confidentiality that teams rely on for sponsorship negotiations and competitive planning. Meanwhile, the fallout is roiling the Race Team Alliance, NASCAR’s owners’ caucus. Earlier this year, teams demanded “meaningful dialogue” on charter permanence and revenue sharing.

It is worth noting that this is a separate issue and not part of the antitrust case. The date set for trial is December 1st, but without the charters, both 23XI Racing and Front Row Motorsports could lose their sponsors and even drivers.

Financial disclosure battle adds fuel to the fire

Meanwhile, 12 NASCAR teams, including powerhouse Hendrick Motorsports. They are locked in a separate dispute over NASCAR’s demand for up to 11 years of detailed financial records. At a Charlotte federal hearing, attorneys warned that even redacted documents could expose proprietary sponsorship deals, driver salaries, and revenue streams, compromising team negotiations and market positioning.

This clash stems from NASCAR’s countersuit against 23XI and Front Row. Alleging anti-competitive behavior and seeking triple damages under antitrust laws. NASCAR insists the financial data is necessary to assess whether certain teams are struggling under the charter model. But team lawyers maintain that broad data disclosure violates confidentiality clauses and opens the door to paralyzing public scrutiny.

U.S. District Judge Kenneth Bell has expressed frustration with the escalating feud, questioning why mutual arbitration mechanisms wouldn’t suffice over sweeping document demands. As the legal battles converge, NASCAR’s ecosystem faces unprecedented challenges to transparency. Sponsors, fans, and media are watching closely.

This tussle between the two parties has now engulfed the entire NASCAR industry, and any potential outcome could redefine a new era for stock car racing.