A confidential NASCAR source has confirmed that 23XI Racing and Front Row Motorsports (FRM) are set to shift from chartered status to “open teams” before the upcoming Chicago Street race. This major development stems from a recent appellate court ruling that dismantled a preliminary injunction protecting their charter positions.
Court Decision Sparks Transformation
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The Fourth Circuit Court of Appeals vacated the preliminary injunction that allowed both teams to be treated as chartered despite rejecting NASCAR’s new charter agreements
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With the injunction lifted on June 5, 2025, NASCAR can now revoke the charters belonging to both teams, forcing them into open-team status unless a rehearing is sought before June 26 .
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What “Open Team” Status Means
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As open teams, neither 23XI nor FRM will have guaranteed entries into races—they must now rely on qualifying times.
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Financially, this change could slash their prize income by more than two-thirds, as chartered teams receive significantly higher payouts
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Denny Hamlin and Michael Jordan remain committed to racing through the season, confident the courts will ultimately side with them in December’s full trial
Implications for the Chicago Street Race
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The Chicago Street race is approaching rapidly. Success in qualifying will now be critical for these teams to avoid missing out entirely.
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NASCAR insiders suggest that both teams are preparing contingency plans in the event they’re forced to navigate the new qualification process
Broader Consequences
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Losing chartered status not only harms race participation—it erodes guaranteed revenue, sponsorship confidence, and long-term team planning.
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Despite the ruling, both teams have an opportunity to file for a full-court rehearing by June 19, delaying the transition until at least June 26
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The antitrust lawsuit remains active, with the final trial slated for December 1
Summary Table
| Key Detail | Timing / Status |
|---|---|
| Preliminary Injunction Lifted | June 5, 2025 |
| Rehearing Deadline | Charter status frozen until June 26 if rehearing filed |
| Teams Affected | 23XI Racing, Front Row Motorsports |
| Race Impact | Must qualify for entry; no guaranteed participation |
| Financial Hit | Potential two-thirds drop in prize earnings |
| Next Legal Step | Court trial on December 1, 2025 |
Final Takeaway
23XI and FRM are facing a dramatic shake-up just as the NASCAR Cup Series heads into the high-profile Chicago Street race. Their ability to qualify without charters and hold financial ground will be tested in the coming weeks. Both teams still expect a court resolution in their favour by December—but for now, they must compete under a new, highly uncertain framework.
