Photo credit: Nigel Kinrade Photography

Charter agreement adds new limit for Cup Series teams

The start of the new year also means the start of the new charter agreement that the majority of teams signed back in September. This new deal brings multiple changes, including a limit for all but two teams.

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A reported part of the new deal — which Fox Sports' Bob Pockrass has since confirmed — was that teams would be limited to a maximum of three charters. The only exceptions would be the teams that already had four charters. They would be "grandfathered in."

What does this mean? Basically, Hendrick Motorsports and Joe Gibbs Racing will be able to continue operating as four-car teams. They will be the only teams able to do so moving forward as every other team will have the three-charter limit in place.

The teams that currently own three charters are 23XI Racing (pending appeal by NASCAR), Front Row Motorsports (pending appeal), Team Penske, Spire Motorsports, and Trackhouse Racing. RFK Racing will operate three chartered entries in 2025 but will lease its third charter from Rick Ware Racing.

The teams with three charters can still enter a fourth car in Cup Series races. This fourth car will just be an open entry, so it will have to qualify for the 40-car lineup. An example is Trackhouse Racing's Project91 car, which should return this season in select events.

The pending appeal references the ongoing legal battle between 23XI Racing/Front Row Motorsports and NASCAR. After declining to sign the new charter agreement, the two teams filed an antitrust lawsuit against the sanctioning body and CEO Jim France.

The case has featured one appearance in court for a preliminary injunction hearing and multiple rulings by two different judges. One ruling from Judge Kenneth D. Bell granted the preliminary injunction to the two Cup Series teams and kept NASCAR from refusing the transfer of charters from Stewart-Haas Racing to 23XI Racing and Front Row Motorsports.

NASCAR filed court documents stating it would appeal the ruling. The appeal has not yet taken place.