23XI Racing and Front Row Motorsports could lose their charter status and be forced to compete as open teams as soon as next week’s NASCAR Cup Series race at Dover Motor Speedway after the Fourth Circuit Court of Appeals denied their request for a rehearing Wednesday.
The decision means both teams would receive significantly less prize money per race and would not be guaranteed starting spots.
However, a full field of cars is not anticipated for many upcoming races.
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“We are disappointed by the Fourth Circuit Court of Appeals decision to deny our request for a full rehearing,” Jeffrey Kessler, attorney for 23XI Racing and Front Row Motorsports, said in a statement. “This decision has no bearing on the strength of our antitrust case, which we look forward to presenting at trial. We are committed to racing this season as we continue to fight for more competitive and fair terms for all teams to ensure the future of the sport, and remain fully confident in our case.”
Kessler’s statement echoes comments made by Hamlin on June 7 at Michigan, where he affirmed 23XI Racing’s commitment to racing this season even if it became an open team.
“Same as what we said in December, is that we’re committed to run this season open if we have to, even before they decided on the injunction,” Hamlin said then. “So, we’re going to race and fulfill all of our commitments, no matter what. We’re here to race. Our team is going to be here for the long haul, and we’re confident of that.”
Hamlin’s remarks followed a June 5 ruling by a three-judge appellate panel that vacated a preliminary injunction. That injunction had allowed 23XI Racing and Front Row Motorsports to compete as chartered teams despite not signing the charter agreement last year.
The teams had requested a rehearing from the full Fourth Circuit Court of Appeals on June 20. Had they not, the three-judge panel’s decision would have taken effect a week later.
With Wednesday’s order, the appellate panel’s decision to vacate the preliminary injunction will go into effect next week, potentially impacting the six cars belonging to 23XI Racing and Front Row Motorsports before the July 20 Dover race.
23XI Racing, co-owned by Denny Hamlin and Michael Jordan, fields chartered teams for drivers Tyler Reddick, Bubba Wallace and rookie Riley Herbst. Front Row Motorsports has chartered cars for Todd Gilliland, Zane Smith and Noah Gragson.
“We’re all just focused on our jobs and allowing the lawyers to kind of take care of that side,” Smith told NBC Sports on Wednesday afternoon. “We’re racers, not lawyers. I don’t know anything about that so I’m not going to act like I do. We’re excited to compete.”
He added, “With this charter change, we often don’t see 40-plus cars (per race), so I don’t know what it will look like … but I know I’ll still have the same tools every Saturday for practice and qualifying and same for the race, and my seat is not going to change. Just trying to stack up some good runs and hopefully get (Front Row Motorsports car owner) Bob Jenkins a win here shortly.”
23XI Racing and Front Row Motorsports initially sought the injunction last year to operate as chartered teams, unlike 13 other Cup organizations that signed the charter agreement. The two teams refused to sign due to a clause prohibiting teams from suing NASCAR. They argued that losing charter status could lead to the loss of sponsors and drivers.
During his argument for the preliminary injunction last November, Kessler highlighted the potential impact, stating, “So, right here, for example, 23XI has a driver who might be the champion this year. He will be in the finals next week. Says if we do not have a charter, he is free to leave. He could be the number one driver. We will never be able to get him back if we do not have a charter.”
U.S. District Court Judge Kenneth D. Bell granted the preliminary injunction on Dec. 18, noting in his opinion that “NASCAR fans (and members of the public who may become fans) have an interest in watching all the teams compete with their best drivers and most competitive teams.”
A three-judge federal appellate panel indicated its likely decision during a May 9 hearing. One judge stated during the hearing, “If you don’t want the contract, you don’t enter into it and you sue. Or if you want the contract, you enter into it and you’ve given up past releases. But … you can’t have your cake and eat it too.”
This matter is part of a larger lawsuit filed by 23XI Racing and Front Row Motorsports against NASCAR and NASCAR CEO Jim France.
The case is scheduled for trial on Dec. 1.
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