Tyler Reddick exit clause thrust into spotlight after 23XI Racing blow
NASCAR superstar Tyler Reddick has an exit clause in his 23XI contract that could allow him to leave the team if it cannot provide a chartered car.
The 2024 NASCAR Cup Series Regular Season champion, Tyler Reddick, could become the hottest free agent in stock car racing, with the 23XI Racing star having an exit clause in his contract amid the team's ongoing antitrust lawsuit with NASCAR.
Michael Jordan and Denny Hamlin's 23XI has teamed up with Front Row Motorsports after refusing to sign up for NASCAR's new charter agreement. Still, a federal judge on Thursday rejected a request from the two Cup teams to continue racing with charters. This means the teams will be open entries for this weekend's race in Dover, followed by Indianapolis.
U.S. District Judge Kenneth Bell denied the teams' bid for a temporary restraining order. While they will race and won't lose their drivers or sponsors in the coming weeks, should 23XI and FRM fail in their legal efforts, the six charters are at risk.
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It could leave NBA legend Jordan and Joe Gibbs Racing star Hamlin at risk of losing both Reddick and Bubba Wallace, who have exit clauses in their 23XI contracts, should the team not be able to provide charters. According to The Athletic, Reddick's contract states that 23XI must provide him with a chartered car, or he can sign with someone else, making him the hottest free agent in NASCAR.
Reddick currently sits fifth in the Cup Series standings despite being winless. Should six different drivers win the remaining six regular-season races, he risks missing the postseason after making the Championship 4 last year. Wallace faces the same fate despite sitting 13th and inside the 16 spots.
However, 23XI has received a promise from NASCAR not to sell until the court delivers a ruling on the preliminary injunction motion, which Judge Bell is expected to officially rule on later. The promise comes after the two teams claimed NASCAR was intent on immediately selling the six chartered cars.
"Since the Fourth Circuit's decision, NASCAR has signaled its intention to immediately move to sell or issue Plaintiffs' charters to other entities—putting Plaintiffs in irreparable jeopardy of never getting their charters back and going out of business," 23XI Racing and FRM said.
NASCAR has pushed back, stating that "there is no credible risk (or even threat) that any of Plaintiffs' drivers will leave mid-season, let alone over the next two weeks. None of their evidence even makes that claim."
"It is unfortunate that instead of respecting the clear rulings of the Fourth Circuit, 23XI Racing and Front Row Motorsports are now burdening the District Court with a third motion for another unnecessary and inappropriate preliminary injunction," NASCAR added further in a statement.
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"As both the Fourth Circuit and the District Court suggested, Nascar has made multiple requests to 23XI Racing and Front Row Motorsports to present a proposal to resolve this litigation. We have yet to receive a proposal from 23XI or Front Row, as they have instead preferred to continue their damaging and distracting lawsuit.
"We will defend NASCAR's integrity from this baseless lawsuit forced upon the sport that threatens to divide the stakeholders committed to serving race fans everywhere.
"We remain focused on collaborating with the 13 race teams that signed the 2025 charter agreements and share our mutual goal of delivering the best racing in the world each week, including this weekend in Dover."
Neither Reddick nor Wallace may refuse to leave 23XI, which has enjoyed rapid growth since entering NASCAR. The drivers are very close to co-owners Jordan and Hamlin.
