The legal tussle between 23XI Racing/FRM against NASCAR wasn’t supposed to drag the other teams who had signed the charter agreement. At least, that was the idea when this battle kicked off on October 2, 2024, in North Carolina’s Western District. The lawsuit filed by the two teams accuses NASCAR of throwing its weight around with “monopolistic practices” that choke the sport’s growth.
The heart of the fight? A clause in the 2025 charter agreement that blocks teams from suing NASCAR, a deal breaker for 23XI and Front Row, who refused to sign but still wanted to race as chartered teams, keeping their guaranteed spots and bigger payouts. The battle swung like a pendulum when 22XI Racing and FRM initially with the preliminary injunction safeguarding their charter team status. But, NASCAR hit back with an appeal, and revoked the initial ruling by Kenneth D. Bell, forcing them to run as open entries for the rest of the 2025 season.
The two did try to reverse this decision with a counterclaim, but it was denied. However, there’s a bigger storm now brewing at the heart of this tussle. Remember those 13 teams that had signed the new charter agreement? Despite having nothing to do with the lawsuit, they have now found themselves right in the middle of it. On June 18th, NASCAR filed a motion demanding the financial details for the 13 teams, which they argued were essential to their defense against Michael Jordan and Denny Hamlin’s rebellion. But it was the court that was going to have a final say on it. And, it looks like the teams aren’t entirely safe from this legal tussle that has taken the industry by storm.
Bob Pockrass shared an update on X, stating, “Judge ordered the non-suing teams to provide the financial information in the manner that those teams had offered to provide to NASCAR (NASCAR had wanted more detailed from each team). Only attorneys and their experts can view it.”
Judge ordered the non-suing teams to provide the financial information in the manner that those teams had offered to provide to NASCAR (NASCAR had wanted more detailed from each team). Only attorneys and their experts can view it: pic.twitter.com/9jY4fhJodP
— Bob Pockrass (@bobpockrass) June 25, 2025
The court’s order, issued for the Western District of North Carolina, lays it out: by noon on June 27, NASCAR and the 13 non-suing Cup teams must pick an independent accounting firm to handle anonymized financial data. If they can’t agree, each side submits a name to the court. The non-suing teams like Joe Gibbs Racing and Hendrick Motorsports have to cough up annual top-line numbers (revenue, costs, profits/losses) per car from 2014 onward, including sponsorship cash, but only for Cup Series operations.
The accountant will compile a confidential spreadsheet for NASCAR’s and the plaintiffs’ legal teams, marked “Highly Confidential Attorneys Eyes Only.” NASCAR foots the bill for the accountant, but everyone covers their own legal fees. This move keeps the teams’ books private while giving NASCAR a peek to counter 23XI and Front Row’s claims, tightening the screws in this legal dogfight. The idea behind this is that NASCAR wants to argue that teams aren’t in a financial crunch; rather, they’re making enough money through sponsorships and other revenue streams.
If the governing body had gotten hold of the clear financials of the racing organization, it would leave them vulnerable. Why? Because both NASCAR and the teams compete for the same sponsorship dollars, this could lead to a conflict of interest and widespread chaos. Right now, per-car costs would help NASCAR to make their argument, but this wasn’t the scenario the 13 teams intended to be in; that was the whole point of signing the new charter deal.
While the teams are feeling the heat of this legal tussle, not everything is well within 23XI Racing. It seemed as if off-track drama and outside noise won’t affect the performances on the racetrack, but reality is far from it. Tyler Reddick, though good in terms of points, hasn’t won a race. Meanwhile, Bubba Wallace is facing déjà vu after a disastrous race in Pocono.
Denny Hamlin delivers a ‘Painful’ reality check to 23XI Racing
On the track, 23XI Racing hit a rough patch at Pocono Raceway’s Great American Getaway 400, and Denny Hamlin didn’t sugarcoat it. On his Actions Detrimental podcast, the Joe Gibbs Racing driver and 23XI co-owner sounded stumped over why all three 23XI cars—driven by Wallace, Reddick, and Herbst suffered brake issues, while JGR’s cars ran clean.
“I don’t know what’s going on over there… typically when JGR doesn’t have brake issues, 23XI does and I don’t know why. They had things going really well but man, it’s painful right now.” Hamlin said. With a technical alliance since 2021, JGR supplies chassis and Toyota Racing Development handles engines for both teams, making the brake debacle a head-scratcher. Wallace and Herbst crashed out with DNFs, and Reddick limped to a 32nd-place finish, his worst in a points race this season.
Meanwhile, JGR’s Chase Briscoe won, Hamlin took second, and Christopher Bell and Ty Gibbs finished 17th and 14th. All JGR drivers except Gibbs are playoff-bound, while 23XI’s trio is still chasing spots. The legal storm and track struggles set the stage for a high-pressure Quaker State 400 at Echo Park Speedway on June 28, 2025. It is a chance for 23XI and Front Row to fight back.
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