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NASCAR Legal Battle Flips as Court Ruling Revives SHR, 23XI Racing, and FRM in Dramatic Charter Sale Twist – Tony Stewart can finally walk away from SHR with millions in his pocket

Publisher by Publisher
January 29, 2025
in Motorsports
Reading Time: 4 mins read
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NASCAR Legal Battle Flips as Court Ruling Revives SHR, 23XI Racing, and FRM in Dramatic Charter Sale Twist – Tony Stewart can finally walk away from SHR with millions in his pocket

Oct 13, 2024; Ennis, TX, USA; Neal Strausbaugh, crew chief for NHRA top fuel driver Tony Stewart (not pictured) during the Fall Nationals at the Texas Motorplex. Mandatory Credit: Mark J. Rebilas-Imagn Images

The NASCAR offseason has been nothing short of a legal thriller, with the charter system lawsuit shaking up the power dynamics between the sport’s governing body and its teams. At the center of the chaos? None other than Tony Stewart’s Stewart-Haas Racing (SHR), which found itself entangled in a high-stakes courtroom battle that threatened to derail the team’s future.

But in a stunning turn of events, the court’s sudden ruling in favor of the teams breathed new life into SHR, allowing the stalled charter sales to finally go through. The victory didn’t just secure millions for Tony Stewart—it also gave clarity to Michael Jordan’s 23XI Racing and Front Row Motorsports (FRM) ahead of the 2025 NASCAR season.

And no one was more relieved than Kevin Harvick, the NASCAR legend and former SHR driver, who admitted he was bracing for the worst.

Harvick’s Reaction: From Skepticism to Relief

Harvick, who’s never been shy about voicing his opinions, initially thought NASCAR had the upper hand in the lawsuit. Speaking on his show, Kevin Harvick’s Happy Hour, he reflected on the early stages of the legal battle, saying:

“When I first started watching the whole thing take place, I’m like, ‘Man, NASCAR is kicking butt. This is not going to be very good for the teams.’”

For weeks, it seemed like NASCAR’s control over the charter system would remain ironclad, preventing SHR from completing its sale. But then, the judge flipped the script, shifting momentum toward the teams.

“Then the judge switched, and all of a sudden, everything swung towards the teams… I’m happy that the charters and the sale for SHR went through, I’m happy that they’re able to get the charters theoretically,” Harvick said, acknowledging that the lawsuit isn’t entirely over.

The Charter System Showdown: NASCAR vs. Teams

At the heart of the lawsuit was the charter system, a crucial agreement that guarantees teams:

  • Entry into every race
  • Revenue-sharing opportunities
  • The ability to sell or transfer their charters

Stewart-Haas Racing, which shut down after the 2024 season, was trying to sell its charters to 23XI Racing and FRM. But NASCAR’s interference in the process—combined with legal uncertainty—put the deals in jeopardy.

Had the court ruled in NASCAR’s favor, it could have led to an unprecedented level of chaos, where some teams might have been left without a guaranteed starting spot.

Harvick recognized the nightmare scenario that could have unfolded, calling it a potential “confusing mess”.

“I’m glad we don’t have to start the year with a bunch of ‘This guy’s in, this guy’s not. Well, his teammate’s in.’ It would have been just a mess,” he said, relieved that the issue had been resolved before the start of the season.

What’s Next for NASCAR and the Teams?

While the charter sales for SHR have finally been completed, the legal battle over the system itself isn’t over. NASCAR’s fight to retain control over the charter agreement continues, and there’s still a long-term question about whether the teams will gain more autonomy in the future.

For now, however, Tony Stewart can finally walk away from SHR with millions in his pocket, and 23XI Racing and Front Row Motorsports can prepare for 2025 without uncertainty.

As for Kevin Harvick, he’ll be watching closely—because if this legal battle has taught NASCAR anything, it’s that nothing is set in stone until the checkered flag drops in court.

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