NASCAR has received a significant blow as an appellate court overturned a lower-court decision that had allowed two key teams—23XI Racing (co-owned by Denny Hamlin and Michael Jordan) and Front Row Motorsports—to continue operating under NASCAR charters amid their antitrust lawsuit. The Fourth Circuit Court of Appeals ruled that the initial injunction, which had preserved the teams’ charter status while litigation continued, was improperly granted—reopening the door for NASCAR to revoke their charters .
The implications are serious. NASCAR charters—each valued in the tens of millions of dollars—guarantee entry into all Cup Series races and are essential for securing sponsorships and consistent funding. Losing charters would relegate 23XI and Front Row to “open” status, forcing them to qualify on speed for every event and resulting in substantially decreased earnings from race purses .
Despite this reversal, both teams are committed to continuing their legal battle. Their attorney, Jeffrey Kessler, emphasized that the appellate decision only addressed a narrow contractual issue and does not affect the main antitrust case, which remains set for trial in December .
Denny Hamlin, who is both a driver and part-owner of 23XI Racing, downplayed the impact of the ruling. Speaking before the FireKeepers Casino 400 in Michigan, he expressed confidence, stating the decision affected just one aspect of the litigation and wouldn’t deter the team or its future. He also affirmed that they’re prepared to continue racing—even without charters—highlighting their financial capability and determination to see the lawsuit through .
Still, the stakes remain high. Without charters, both teams face financial strain, greater operational challenges, and the risk of being bumped from races if they don’t qualify on time. NASCAR has yet to indicate how it might redistribute or reassign those charter slots . With the legal showdown moving toward its December trial, watch for further developments that could reshape team ownership dynamics and competition structure in the Cup Series.
