BREAKING NEWS: 23XI/FRM stated that if NASCAR sells the charters they held earlier this year, the team would be out of business after 2025: “This Court has already found that it is not economically viable to race as open teams on a long-term basis … and NASCAR did not challenge that finding on appeal.”

In a statement carrying significant implications for the future of some NASCAR teams, 23XI Racing and Front Row Motorsports (FRM) have declared that if NASCAR proceeds to sell the charters they held earlier this year to other teams, both organizations could be forced out of business after the 2025 season. This stark warning underscores the critical role that the charter system plays in the financial stability and long-term viability of Cup Series teams.

The teams cited a legal finding already upheld by the court, which concluded that it is “not economically viable to race as open teams on a long-term basis.” NASCAR did not contest this finding on appeal, reinforcing the notion that the current economic structure of the sport is heavily dependent on charter ownership. Without a charter, teams face reduced revenue opportunities, no guaranteed starting positions, and significantly diminished sponsorship value—factors that could quickly render operations unsustainable.

This statement adds urgency to the ongoing negotiations over the future of the charter system, which has become a cornerstone of team business models since its introduction in 2016. If NASCAR moves forward with reselling the disputed charters rather than returning them to 23XI or FRM, it could trigger a destabilizing effect on the competitive and financial landscape of the sport. The potential loss of prominent, competitive teams like 23XI and FRM would not only impact drivers and crews, but could also erode fan trust and investor confidence in the sport’s governance.