23XI, Front Row Motorsports can compete as chartered teams while NASCAR antitrust case continues, judge rules

23XI Racing and Front Row Motorsports issued an injunction on Wednesday allowing the Cup Series teams to compete as chartered teams during the 2025 season. This is a notable victory in their ongoing federal antitrust case against NASCAR. before us to complete a previously agreed upon deal each team had with Stewart-Haas Racing to acquire a single charter, which NASCAR must now approve.

The decision represents a reversal of an October ruling that denied 23XI and FRM an injunction that would have prevented the teams from competing as chartered teams – and thus guaranteed race participation – while their lawsuit against NASCAR for anti-competitive practices continues.

At the time, Judge Frank Whitney found that the teams did not meet the standard for such a request and that the teams would not face irreparable harm if an injunction was not granted, but that the teams could reapply if circumstances changed. Teams said circumstances had changed and when the case was handed over to Judge Kenneth Bell, he issued the injunction.

“We welcome Judge Bell’s decision today to issue a preliminary injunction in our favor. “The court’s ruling allows 23XI and Front Row Motorsports to race existing cars as chartered teams in the Cup Series next year,” said Jeffrey Kessler, attorney for 23XI and FRM. “The decision also requires that NASCAR approve both teams’ acquisition of a third charter by Stewart-Haas Racing and allow those cars to also compete as chartered teams in the 2025 season.” We are confident in the strength of our cause and will continue to fight to ensure that racing can thrive and become a more competitive and fair sport that benefits the teams, drivers, sponsors and most importantly our fans.”

The athlete has reached out to NASCAR for comment on the ruling.

Among the 15 full-time Cup teams, 23XI and FRM are the only two that have not signed NASCAR’s take-it-or-leave-it offer made in September, which extends the sport’s charter contract by seven years through the 2031 season extended. Subsequently, 23XI, whose ownership group includes NBA legend Michael Jordan and NASCAR star driver Denny Hamlin, and FRM, owned by restaurant entrepreneur Bob Jenkins, filed a joint federal lawsuit alleging monopoly practices.

The lawsuit was transferred earlier this month Bell. As a result, FRM filed an affidavit last week claiming that NASCAR would only approve the purchase of the SHR charters if 23XI and FRM dropped their joint lawsuit.

As part of the filing, FRM CEO Jerry Freeze said NASCAR President Steve Phelps initially told him in September that the deal to purchase an SHR charter had been approved by NASCAR, only that NASCAR later informed teams that a any approval dependent on the filing of the lawsuit was dropped.

Additionally, SHR President Joe Custer stated in an affidavit that he had been told by NASCAR on multiple occasions that the sale of the charter to 23Xi and FRM would be approved and that SHR would not be able to initiate the sale should the Sales not approved will include two additional entries, as required by the charter agreement signed in September.

YESSSSSS!!!!!!!

– Denny Hamlin (@dennyhamlin) December 18, 2024

The new documents proved enough “irreparable harm” for Bell to rule in favor of the teams. Bell wrote that 23XI and FRM’s antitrust claims were legitimate and that requiring the teams to either drop the lawsuit or compete as open teams would “cause them harm” because they could lose drivers and would not be considered charter teams would.

“Here, the public interest strongly supports the issuance of a limited injunction in favor of Plaintiffs during the 2025 NASCAR racing season to allow stock car racing fans the opportunity to follow (and campaign for and against) the entire roster ). and to allow plaintiffs to address the antitrust challenges,” Bell wrote.

“Plaintiffs have demonstrated that they are likely to succeed in their claims that 1) NASCAR has monopoly power in the market for premier stock car racing and 2) to the extent that NASCAR’s 2025 charter agreement contains a release , which prevents teams from asserting the antitrust claims. “According to the plaintiffs, such a provision would be a violation of the antitrust laws,” he continued. “Furthermore, plaintiffs have demonstrated that without guaranteed participation in all races as a chartered team, they are likely to suffer irreparable harm by losing contractual control over their best drivers and thereby being unable to field their best racing team.”

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Both teams suing NASCAR will race in 2025

Granting charter status to 23XI and FRM for the 2025 season ensures each organization significantly higher revenue than if they had been forced to operate as an “open” team. They are also guaranteed a starting place in all 36 Cup points races. And without charter, both 23XI and FRM were potentially at risk of losing their drivers whose contracts required them to take a car with charter, including 23XI’s Tyler Reddick, who finished fourth in the 2024 championship.

“Defendants assume that Plaintiffs’ drivers’ concerns are disingenuous and that they will not actually leave Plaintiffs’ teams,” Bell wrote. “While the court obviously cannot completely rule out this possibility, the reality of the situation is clear and immediate for both drivers and plaintiffs. Without a restraining order being issued by December 18, 2024, Tyler Reddick will become a “free agent” and regardless of whether he has a firm plan to leave 23XI or not, other teams will currently have the opportunity to acquire his services (most likely for). several years to protect both the team and the driver). Although irreparable harm may not be speculative, it need not be certain or have already occurred before an injunction is granted.”

Bell further stated in his ruling that a trial is expected to begin sometime before the start of the 2026 season. If NASCAR decides to do so, it can appeal Wednesday’s ruling to the U.S. Court of Appeals.

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(Photo: James Gilbert / Getty Images)