Despite Chris Yates, NASCAR’s attorney, initially asserting that the number of charters would be capped at 32 without plans to restore the four combined charters previously owned by 23XI and FRM, both teams have successfully secured a preliminary injunction to compete as chartered teams in 2025, including approval for the SHR charter transfers. A big factor in this development appears to be Tyler Reddick’s involvement.
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This judicial triumph is a considerable victory for the teams, as, without it, 23XI Racing and Front Row Motorsports would have had to compete as open teams in 2025, a situation that could have made Reddick a free agent.
Such an outcome would have had broad implications, potentially affecting other drivers like Bubba Wallace, Noah Gragson, and Corey Heim, all of whom are bound by similar contractual terms or have expressed the need for a swift resolution.
The primary factor influencing Judge Kenneth Bell’s decision to grant the request was rooted in the team’s statements that the potential loss of star drivers posed an immediate and irrevocable risk.
He articulated, “The ‘present prospect’ of the loss of star drivers constitutes irreparable harm that ‘cannot be fully rectified by the final judgement after trail…’ These are the changed circumstances that the court finds to have moved Plaintiffs likely harm from remote and speculative to present and immediate.”
Delving deeper into the concept of ‘irreparable harm,’ journalist Bob Pockrass explained on his X handle: “As far as irreparable harm, judge noted: “Absent entry of a preliminary injunction by December 18, 2024, Tyler Reddick will become a “free agent” and whether or not he has a firm plan to leave 23XI, other teams will have the present ability to contract for his services.””
As far as irreparable harm, judge noted: "Absent entry of a preliminary injunction by December 18, 2024, Tyler Reddick will become a “free agent” and whether or not he has a firm plan to leave 23XI, other teams will have the present ability to contract for his services."
— Bob Pockrass (@bobpockrass) December 18, 2024
Judge Bell concluded that the drivers had sufficiently notified their teams about potential contract breaches and sponsors had indicated they were reassessing their financial commitments, providing ample evidence of the irreparable harm at stake.
Given this situation, 23XI Racing risked losing one of its top drivers if the preliminary injunction had not been granted. The potential departure of Reddick could have inflicted lasting damage on the team’s long-term prospects, a scenario not easily mitigated by financial compensation, even if the teams were to eventually win the lawsuit.
Reddick joined the 23XI Racing team in 2023 and has since competed for two seasons behind the wheel of their #45 Toyota Camry, securing sixth and fourth-place finishes respectively.