NASCAR News

23XI and FRM “pleased” as NASCAR removes anticompetitive clause

Tyler Reddick, 23XI Racing, The Beast Unleashed Toyota Camry, Denny Hamlin, Joe Gibbs Racing, FedEx Toyota Camry

While the antitrust lawsuit against NASCAR moves forward, the sanctioning body has removed an anticompetitive provision from its rulebook, allowing 23XI Racing and Front Row Motorsports to compete as open teams in 2025.

This move ends speculation the sport would deny the teams entry next year, but the fight against the new charter agreement is far from over.

The teams’ attorney, Jeffrey Kessler, released the following statement as they reacted to this news: “We are pleased to announce that NASCAR has removed the anticompetitive release requirement in its open agreement, which will now allow 23XI and Front Row Motorsports to race as open teams in 2025. My clients will continue their appeal to the 4th Circuit to issue an injunction so that they can run as chartered teams therefore avoiding irreparable harm.

“Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”

Tyler Reddick, 23XI Racing, The Beast Unleashed Toyota Camry, Denny Hamlin, Joe Gibbs Racing, FedEx Toyota Camry

Photo by: John Harrelson / NKP / Motorsport Images

Where does it go from here?

All indications are that running as open teams could result in a significant loss in revenue for 23XI and Front Row Motorsports, while also putting them in jeopardy of missing races as they won’t be locked in anymore. While the grid rarely exceeds the 40-car maximum these days, open teams are forced to race their way into the Daytona 500 with some always going home after the Duels.

In essence, Saturday’s development only removes rumors that NASCAR wouldn’t allow the teams onto the grid in 2025 as they challenge the legality of the new charter agreement they refused to sign in September. Denny Hamlin made waves at the season finale when he hinted at the possibility of 23XI not racing next year if they failed to hold onto the charters, but that no longer appears to be the case.

Earlier this month, a judge denied their motion for a preliminary injunction to keep hold of their charters while the lawsuit is ongoing, citing the fact that they did not meet the burden of proof in stating they will suffer irreparable harm.

The two race teams are appealing this decision as their four charters are set to expire at the end of the calendar year. They are also in the middle of purchasing two charters from the now defunct Stewart-Haas Racing, but that transaction cannot close due to this…

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