NASCAR appeals injuction for 23XI Racing and Front Row Motorsports challenging a federal judge’s decision to recognize the teams as chartered entities for the 2025 season.
The 68-page appeal submitted on Wednesday night just before the Daytona 500 qualifying contests a preliminary injunction issued by U.S. District Judge Kenneth Bell of the Western District of North Carolina in December.
NASCAR appeals injunction that allowed 23XI Racing and Front Row to receive the same financial rewards and benefits as chartered teams while their antitrust lawsuit against NASCAR proceeds through the courts.
The heart of the dispute lies in the charter agreement which grants teams certain rights and privileges including guaranteed entry into races and a larger share of the revenue.
23XI Racing co-owned by NBA legend Michael Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports owned by entrepreneur Bob Jenkins initiated legal action against NASCAR, alleging that the organization has unlawfully maintained a monopolistic status, violating the Sherman Antitrust Act.
According to ESPN, NASCAR appeals injuction on grounds that Judge Bell’s ruling “flout federal antitrust law; misapply the established rules governing the use of preliminary injunctions; ignore unrebutted, legally significant evidence; and have sweeping implications for NASCAR’s 2025 Cup Series season.”
The racing body argues that the injunctions misuse judicial power by compelling NASCAR to treat its legal adversaries as business partners, undermining the trust that has fueled its growth and success.
The ongoing legal battle heated up when 23XI and Front Row sought the court’s intervention to compel NASCAR to permit them to sign the charter agreement without relinquishing their right to sue on antitrust grounds, a condition allegedly imposed by a clause within the charter agreement.
Their initial request was turned down on November 8 by U.S. District Court judge Frank Whitney, who stated that the teams had not demonstrated sufficient irreparable harm. However, the teams were invited to submit a renewed motion should circumstances change.
Subsequently, the case was reassigned to Judge Kenneth Bell, who approved a fresh request for a preliminary injunction on December 18.
The implications of the legal battle are far-reaching, potentially reshaping the landscape of NASCAR’s competitive and financial structure.
The preliminary injunction mandated that NASCAR approve the sale of one charter from Stewart-Haas Racing (SHR) to 23XI Racing and another to Front Row Motorsports, enabling both teams to expand to a third car.
As NASCAR appeals injunction, it contends that the court’s order encompassed relief that was never requested by the plaintiffs, specifically, that NASCAR endorse 23XI’s acquisition of a Charter from SHR.
NASCAR has also raised concerns about the timing and circumstances surrounding the preliminary injunction, arguing that the plaintiffs are now able to secure Charters months after the organisation retracted its best and final offers, and under terms that plaintiffs prefer.
The racing body asserts that this situation poses significant implications for NASCAR and its competitors, as it has already recalibrated race purses and reassessed available racing positions in anticipation of the 2025 Cup Series season.
NASCAR claims that it would rather extend the benefits of the 2025 Charter to owners dedicated to boosting the sport’s competitiveness, fan engagement, and media revenue, rather than to owners who detract from the sport’s reputation and seek advantages over fellow owners in Charter agreements.
The preliminary injunction is limited to the current season, with a jury trial slated to commence on December. The appellate court is expected to hear oral arguments on the appeal in May, with a potential ruling in June.
The outcome of the legal battle will not only determine the fate of 23XI Motorsports and Front Row Motorsports but could also set a precedent for future disputes between NASCAR and its teams.
While NASCAR appeals injunction, the teams will proceed with preparations for 2025 season – 23XI Racing will field Toyotas for drivers Tyler Reddick, Bubba Wallace, and Riley Herbst, while Front Row Motorsports will run Fords for Gilliland Noah Grson, and Zane Smith.
