Amid the protracted legal battle that began in October 2024, fresh developments and revelations have continued to surface throughout the case. While the sweeping antitrust complaint accused NASCAR of wielding monopoly power through its charter system and parts-supply rules, the two parties are almost at the conclusion of their lawsuit. A surprise win came in December, when U.S. District Judge Kenneth Bell granted the teams a preliminary injunction that let them operate as full charter members for 2025 while the broader lawsuit marched toward a trial.

NASCAR appealed, and in June 2025, a three-judge Fourth Circuit panel overturned that injunction, calling Bell’s order an “abuse of discretion.” The same court refused to rehear the matter in July, triggering a 7-day clock that will strip the teams of charter status on July 16th, just in time for the Dover weekend. Now, the matter only seems to get worse for both Michael Jordan and Denny Hamlin’s 23XI Racing and Front Row Motorsports, but with new insights at hand.

New motion reveals high-stakes gamble in NASCAR charter dispute

The two teams have officially filed for a temporary restraining order and renewed preliminary injunction to retain their charters through the end of the 2025 season. The move comes just days before their charter status is set to expire on Wednesday, following the Fourth Circuit’s earlier ruling that denied their previous injunction. The teams argue that new evidence, specifically a letter from NASCAR, shows an “immediate” intent to sell or reissue their charters before the lawsuit concludes, which could irreparably harm their business.

“NASCAR has signaled its intention to immediately move to sell or issue Plaintiffs’ charters to other entities—putting Plaintiffs in irreparable jeopardy of never getting their charters back and going out of business,” the filing states. In its statement included in the filing, NASCAR rebuked the request and reiterated its position that 23XI and FRM are improperly attempting to reargue a case already decided. “It is unfortunate that instead of respecting the clear rulings of the Fourth Circuit, 23XI Racing and Front Row Motorsports are now burdening the District Court with a third motion for another unnecessary and inappropriate preliminary injunction,” NASCAR wrote.

FOX reporter Bob Pockrass wrote on X, “Much of the 23XI/FRM filing today is redacted as it contains information gathered through discovery that currently remains confidential. It does include that they got a letter from NASCAR indicating it could sell their charters before lawsuit is complete.”

The sanctioning body said it has repeatedly asked the teams to present a resolution proposal but claims, “We have yet to receive a proposal from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit.” NASCAR emphasized its focus on the thirteen teams that signed the 2025 charter agreement, and added, “We will defend NASCAR’s integrity from this baseless lawsuit forced upon the sport that threatens to divide the stakeholders committed to serving race fans everywhere.” The organization made clear its intention for 23XI and FRM to be unchartered at the upcoming race weekend in Dover.

At the heart of it lies the precarious fate of the Stewart-Haas Racing charters, now caught in the crossfire of a contentious lawsuit. As part of SHR’s announced closure at the end of the 2024 season, 23XI and FRM had acquired two of the four available SHR charters, each, with Gene Haas retaining one for a new Haas Factory Team. Initially, the preliminary injunction guaranteed starting points and a larger share of the race purse money while the lawsuit proceeded. But it was a temporary truce, a brief moment of calm before the storm.

However, the calm was shattered, with a recent ruling by the U.S. Court of Appeals overturning the injunction, effectively stripping both teams of their chartered status for their three new cars. This move sent shockwaves through the industry, as it meant that these cars would now be forced to compete as “open” entries, requiring them to qualify for every race and significantly reducing their prize money. More ominously, in the court filings from July 14th, 2025, the two teams explicitly stated that NASCAR has “signaled its intention to immediately move or sell (their) charters to other entities — putting (23XI Racing and Front Row Motorsports) in irreparable jeopardy of never getting their charters back and going out of business.”

This means that other parties eyeing the charters have a greater chance of acquiring them. And multiple suitors are in line to grab the charters if they are placed on the market.

Orphaned charters in play as NASCAR plans reallocation post-lawsuit

With SHR’s 2 charters up for grabs, and NASCAR’s threat to reallocate the ones purchased by 23XI Racing and FRM, the paddock is on alert. The Fourth Circuit’s June ruling opened the door for NASCAR to treat those charters as unassigned in case Jim France wins the lawsuit, which looks more likely each passing day. The seismic shift has sent a ripple of opportunity through the Cup Series garages, as several established owners are now openly expressing their ambition to expand their teams.

Leading the charge is RFK Racing co-owner Brad Keselowski, who has made no secret of his desire to grow his team. Earlier in the 2025 season, RFK Racing officially expanded to a three-car option but by leasing an RWR charter. Ryan Preece joined Keselowski and Chris Buescher. The veteran driver/team owner has openly stated that further expansion remains a goal. “If you’re not growing, you’re dying in this sport, and we’re growing,” Keselowski said. “We’re adding people, adding teams, making key investments. It’s an exciting time for me. You know, ’23 versus ’24 looks really similar, but I’m keen to say that ’25 should be a step up for us.” 

Another prominent figure actively looking to expand his team is 7-time Cup Series champion Jimmie Johnson, who co-owns Legacy Motor Club. Johnson has made it clear, saying, “It’s been a process, unfortunately, but I think we’ll have some form of outcome here soon. It’s our intentions and ambitions to put a third car on the grid in ’26, I’d say worst case scenario would be ’27.” 

While the immediate future of the 23XI and FRM charters remains tied to the legal proceedings, the explicit threat by NASCAR paints a vivid picture of a competitive landscape bracing for a significant shake-up. The outcome will shape the future ownership structure and competitive balance of the sport for years to come.