23XI Racing and Front Row Motorsports have filed a notice of appeal while aiming to keep their status as chartered teams throughout the 2025 season.
On June 5, a panel of three judges from the Fourth Circuit Court of Appeals ruled in favor of NASCAR. This panel overturned the preliminary injunction granted by Judge Kenneth D. Bell.
This put 23XI Racing and Front Row Motorsports in a situation where they could lose their status as chartered teams. This would force them to race as open teams for the rest of the season and take significantly less prize money each week.
The two Cup Series teams had a limited amount of time to appeal this decision and request that the full panel of judges hear their case. They chose to pursue this option.
"Today, we filed a petition with the U.S. Court of Appeals for the Fourth Circuit requesting a rehearing before the full court," Jeffrey Kessler, lead attorney for the two teams, said in a statement. "This follows a panel decision that reversed a District Court ruling granting a preliminary injunction, which had allowed 23XI and Front Row Motorsports to compete as chartered teams during the 2025 season while pursuing their antitrust claims.
"The panel's decision does not address the merits of our case. It was based solely on a narrow question: whether the release of claims in the charter agreement could be considered anticompetitive. If upheld, the ruling would set a dangerous precedent, allowing monopolists to shield themselves from legal challenges simply by requiring release language as a condition of doing business with the monopoly.
"Our lawsuit is about making NASCAR more competitive and fair. The release provision is just one of many anticompetitive tactics NASCAR has used to preserve its monopoly. We remain fully confident in our case and are committed to racing the full season--regardless of the outcome of this position."
The two teams will continue racing as chartered organizations as this situation unfolds. If the full panel hears the case and rules in favor of the two teams, they will keep their charters. If the panel rules in favor of NASCAR, 23XI Racing and Front Row Motorsports would lose their charters after seven days.
NASCAR has not said what it would do with these six charters if 23XI Racing and Front Row Motorsports lose them.