The NASCAR world was rocked on September 6, 2025, when NASCAR issued a bombshell announcement that delivered a crushing blow to 23XI Racing, co-owned by Michael Jordan and Denny Hamlin. The sanctioning body confirmed it would move forward with plans to reallocate charters for the 2026 season, following the expiration of a preliminary injunction that had allowed 23XI and Front Row Motorsports to race as chartered teams in 2025. This decision, detailed in a filing reported by Motorsport.com, effectively strips 23XI of its three charters, forcing the team to operate as an open entry next season, a move that could jeopardize its financial stability and competitive future.
The announcement stems from the ongoing antitrust lawsuit filed by 23XI and Front Row against NASCAR in October 2024, alleging monopolistic practices and unfair charter terms. Initially, a December 2024 injunction granted by Judge Kenneth Bell allowed both teams to retain their charters, including two acquired from Stewart-Haas Racing, while the legal battle unfolded. However, the Fourth Circuit Court of Appeals overturned this on June 5, 2025, and denied a rehearing on July 9, as reported by Jayski’s NASCAR Silly Season Site. NASCAR’s latest filing revealed an agreement to transfer one of the disputed charters to an unnamed entity for 2026, with plans to sell the remaining five if 23XI and Front Row lose their case, set for trial on December 1.
For 23XI, the loss of charter status is catastrophic. Charters guarantee race entry and a larger share of purse money, critical for team operations. Without them, 23XI’s drivers—Tyler Reddick, Bubba Wallace, and Riley Herbst—face the uncertainty of qualifying for races, as noted by The Athletic. The team’s filing warned that losing charters could force 23XI out of business post-2025, a sentiment echoed by fans on X, with one posting, “MJ and Hamlin built something special—NASCAR’s playing dirty!” Financially, the impact is stark: open teams earn less than a third of chartered teams’ revenue, per Racing News.
Michael Jordan, a fierce advocate for fairness, responded on X: “We’re fighting for what’s right. This isn’t over.” Hamlin, meanwhile, emphasized the team’s commitment to racing in 2025, stating in a Fox Sports interview, “We’ll compete as open teams if we must, but NASCAR’s actions hurt the sport.” The announcement has also raised questions about driver contracts, particularly Reddick’s, which reportedly includes a clause requiring a chartered car, per The Athletic. Losing him could be a further blow to 23XI’s roster.
As the December trial looms, 23XI faces an uphill battle. NASCAR’s assurance that six charters will remain available pending the trial’s outcome offers little comfort, as new teams could snap them up if the lawsuit fails. Fans and analysts alike are watching closely, with one X post summing it up: “NASCAR vs. 23XI is the fight of the year.” The outcome will shape not only 23XI’s future but also NASCAR’s charter system and the sport’s competitive landscape.
