“I have a lot of fears that sustainability is going to be a real challenge,” said Jeff Gordon when RTA was a united front a couple of years ago. The teams united under one banner and wanted a better economic split while negotiating the new charter agreement. But last year, NASCAR decided to drop the hammer and proposed a ‘take it or leave it’ offer and this time even the mighty organizations like Hendrick Motorsports and Team Penske bent their knee. Meanwhile, 23XI Racing and Front Row Motorsports launched a counter against the governing body and filed an antitrust lawsuit.
Only two teams challenged the status quo, and this was the first sign of RTA crumbling. Michael Jordan and Bob Jenkins did have a small win last year when they were granted a preliminary injunction. This allowed them to race as chartered teams without signing the new deal. But this win didn’t last long, as on Thursday, the U.S. Courts of Appeals overruled the injunction in favor of NASCAR’s appeal. And this could have serious implications for 23XI Racing and FRM for the rest of the year. RTA was supposed to stand by in support of fellow teams, but after this decision, Brad Keselowski made a statement that signals a drastic shift in sentiment within the Cup garage.
Brad Keselowski feels his team has no say in the ongoing legal dispute
Keselowski, who dons a similar hat as Denny Hamlin, of being a team co-owner/driver, was asked about his take on the verdict that leaves the two teams in a vulnerable position. His response was rather surprising. “Bob, I would say that we signed the Charter agreement. There’s really three parties here: the teams that sign a charter agreement, teams that didn’t, and then NASCAR. You know, we fall into that first party and feel like, at this time, it doesn’t make us a part of the energy. Either way, on anything.”
The message is clear: RFK Racing has no say in the legal saga, as they made their choice by signing the new deal. Even when there was a backlash against NASCAR with reports stating that teams were forced to sign the charter deal, Keselowski had a clear message. “We know we want to run NASCAR for a long time to come and signing the charter agreement is a statement to our commitment to doing just that.”
At June 17 hearing in 23XI/FRM-NASCAR lawsuit, an issue to be discussed is whether all teams should be parties b/c potential impact on them. The teams are fighting that (partly b/c they say charter agreement disputes are supposed to go to arbitration). What Brad Keselowski said: pic.twitter.com/dr3tVcWoWb
— Bob Pockrass (@bobpockrass) June 7, 2025
But Hamlin wasn’t one to retreat. Speaking to the media, he held his ground that they felt confident in their approach despite the current setback. “You know, we remain very confident in our case for December 1st. We are confident in it. We feel like a factor on our side. And I think if you listen to the judges, even they mentioned that we might be in pretty good shape.”
When asked about the possibility of running as an open team for the rest of the 2025 season, he replied, “Same as what we said in December, is that we are committed to run this season open. If we have to, our team is going to be here for the long haul, and we’re confident of that.” His message? 23XI isn’t going anywhere. But, there’s a possibility of his star driver, Tyler Reddick, becoming a free agent. Also, the team could sustain heavy financial losses if NASCAR takes over the Stewart-Haas charter they bought to expand to a three-car operation.
With the June 19 appeal deadline fast approaching, the fate of both teams remains uncertain as a crucial decision on their charter status nears. If they end up losing their charters, it could create a major opportunity for other teams, particularly Roush Fenway Keselowski Racing, to secure or even grow their presence on the grid. That’s especially noteworthy given RFK’s ongoing lease of Rick Ware Racing’s charter, currently tied to the number 60 car piloted by Ryan Preece.
What are the possible implications for 23XI Racing and FRM?
The recent court ruling has sent shockwaves through the NASCAR garage. With the Fourth Circuit vacating the preliminary injunction, both 23XI Racing and Front Row Motorsports have effectively lost the protective shield of charter status. While they are still allowed to compete in the cup series, the safety net is gone. Without a charter, they’ll need to qualify for every race on speed alone, no automatic entry, no guaranteed payout.
But the implications go far deeper than the racetrack. Charter status isn’t just about getting a permanent on the grid, but also provides teams with a revenue stream. With it comes a share of NASCAR media rights revenue, higher purse cuts, and, perhaps most importantly, long-term sponsor security. Now, both teams face an uphill battle convincing sponsors to stay on board in a world of uncertainty. If you’re a partner who is paying for consistent national TV exposure, hearing your car might not make it into the field is enough to spark some hard conversations behind closed doors.
While the situation is tense, it’s not completely catastrophic yet. The effects of the ruling don’t become fully binding until after June 26, allowing time for a possible petition for rehearing, which must be filed by June 19. And in recent seasons, very few cup races have had more than 40 entries, meaning both teams could still make every race. They might face some competition at the Brickyard, Daytona or Talladega races.
Looking ahead, the next few weeks are very critical. If 23XI Racing and FRM file for an appeal, and it’s denied, NASCAR will regain control over their six charters. This opens doors to redistribution, leasing, or even expansion of other teams like RFK Racing, who are notably keeping close watch.
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