Ahead of the championship race in Phoenix, 23XI Racing co-owner Denny Hamlin shared the harsh reality his team could face if their injunction appeal failed. When asked about preparations for the Daytona 500 and the Clash at Bowman Gray Stadium, Hamlin’s response—”I think it’s all TBD”—sent shockwaves through the NASCAR world, hinting at a potential setback for 23XI Racing in their ongoing legal battle with NASCAR.
This all began after a federal judge dismissed the team’s request for a preliminary injunction, citing a lack of proof of irreparable harm. The situation seemed hypothetical at that point, contemplating a future where both 23XI Racing and Front Row Motorsports might lose their charters for the 2025 season. Despite the unfavorable odds, 23XI Racing announced the signing of Riley Herbst as their third driver for 2025, leaving fans and insiders puzzled.
Former Xfinity Series driver Landon Cassill, however, saw through the uncertainty and accused Denny Hamlin of manufacturing chaos. According to Cassill, Hamlin and 23XI Racing were working on securing Herbst well before they publicly painted a picture of doubt about the team’s future.
It was no secret that 23XI Racing had plans to expand to a three-car lineup for the 2025 season. They even built a new racing facility, “AirSpeed,” specifically for their growing ambitions. But what they didn’t foresee was the charter negotiations turning into a legal nightmare, throwing a wrench into their expansion.
Unlike the other 13 teams in the Cup Series, 23XI Racing refused to sign the new charter agreement, choosing instead to sue NASCAR on anti-trust grounds. Their preliminary injunction request was intended to preserve their chartered status for 2025, but the federal judge denied the motion. Still, they are not giving up—they are planning to appeal this decision, and all the while, they managed to sign Riley Herbst. Cassill believes this move was calculated to influence the court, showcasing a team determined to move forward despite legal obstacles.
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Speaking on the Money Lap podcast, Cassill said, “I think it just shows there’s some disingenuous communication from Denny to the public. A week ago, he said they had no idea if they could have cars ready for Daytona, and now they’ve signed Riley Herbst. That happened overnight. I think it’s interesting.” He added that Hamlin might have been posturing to help the case: “Maybe it’s their only chance with this injunction—to prove irreparable damage if there was no charter… But all along, they were working on adding a third car.”
Meanwhile, NASCAR is attempting to play hardball with the two teams by dragging out the case. The first time 23XI Racing filed for an injunction, they couldn’t prove irreparable harm. But now, with new evidence—including the purchase of the Stewart Haas Racing charter—the teams have re-filed. The key argument is that they have roughly three weeks to confirm the purchase or risk losing it, along with potential losses involving their drivers and sponsors.
One pivotal point in this battle is Tyler Reddick’s contract, which has a clause allowing him to leave 23XI Racing if the #45 car is not a chartered entry. Both NASCAR and the teams have deadlines—NASCAR has set theirs for December 9, while the teams want the hearing expedited by December 12 or 13. The teams are seeking a swift resolution, while NASCAR aims to delay any ruling into 2025. It’s evident that NASCAR wants to stretch this case out, hoping to avoid a favorable judgment for the teams before the end of the year.
The outcome of this legal struggle is still up in the air, but one thing is clear: the stakes are incredibly high, both for the racing teams and for NASCAR itself. As the year draws to a close, both sides are bracing for a decisive moment that could redefine NASCAR’s future.
