CHARLOTTE, N.C. (AP) — The two teams suing NASCAR over an antitrust complaint said Saturday that they will compete in 2025 as “open teams” after the sanctioning body removed anticompetitive release claims that will allow them to race while the legal process continues.

What You Need To Know

  • 23XI Racing and Front Row Motorsports filed an antitrust suit against NASCAR after refusing to agree to take-it-or-leave-it revenue sharing offers in September

  • The two teams faced the options of not racing or having a judge dismiss the lawsuit because of a provision that teams can't sue the sanctioning body

  • But on Friday, the language that prohibited NASCAR from being sued was removed in documents delivered to teams 

  • A lawyer for 23XI Racing and Front Row Motorsports said Saturday that they can compete as "open teams," which don't get the same benefits as chartered teams 

23XI Racing, the team owned by NBA Hall of Famer Michael Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports refused in September to sign take-it-or-leave it revenue sharing offers made by NASCAR just 48 hours before the start of the playoffs.

The teams have filed an antitrust suit calling NASCAR “monopolistic bullies.” A federal court last week denied their request to be recognized as “chartered” teams as the suit continues. A charter is essentially a franchise and guarantees prize money, a spot in the field each week and other protections.

Both teams insisted they'd compete as open teams, which would require them to show up each week and qualify their cars for every race. Open teams do not receive the same benefits as chartered teams, including a fair cut from the financial purses.

After losing the injunction — which both teams are appealing — Hamlin reversed course and said it was “TBD” if 23XI would be at the season-opening Daytona 500 in February as an open team.

The options for 23XI and Front Row, which is owned by entrepreneur Bob Jenkins, were to either not race or risk a judge dismissing the lawsuit outright because of the claim teams can't sue the sanctioning body.

That language that prohibited NASCAR from being sued was removed in documents delivered to teams on Friday.

In a Saturday morning update from the attorney for the two teams, Jeffrey Kessler said NASCAR “has removed the anticompetitive release requirement in its open agreement" to allow 23XI and Front Row to operate as open teams. Both teams have two chartered cars and have purchase agreements with Stewart-Haas Racing for a third charter each.

Those sales have not closed and the existing four charters between 23XI and Front Row expire at the end of the year. Kessler has asked for an expedited December hearing on the appeal as the season begins in February.

Kessler said the teams will enter as open teams.

“My clients will continue their appeal to the 4th Circuit to issue an injunction so they can run as chartered teams therefore avoiding irreparable harm,” Kessler said. “Both race teams are pleased that they will continue to be a participant in this sport that they love while fighting to make it fair and just for all.”