23XI, Front Row denied in preliminary injunction request

Yesterday at 02:18 PM

23XI Racing and Front Row Motorsports have had their preliminary injunction request denied.

In his ruling, U.S. District Court Judge Frank Whitney said the teams "have not met their burden as required." However, the teams can file a renewed motion for a preliminary injunction if circumstances change.

The current charter agreement expires on Dec. 31. The lawsuit will be assigned to the fast track to be settled as quickly as possible.

The request was heard earlier this week. 23XI Racing and Front Row Motorsports argued to race as charter teams in 2025, or their operations would suffer. Additionally, they asked for the release clause in the charter agreement to be waived, which gives teams no right to sue NASCAR.

However, Whitney cited case law that states "a plaintiff seeking a preliminary injunction must 'demonstrate that irreparable injury is likely in the absence of an injunction.' A showing of the 'possibility of irreparable harm' is not sufficient." He went on to additionally cite that "the required irreparable harm must be neither remote or speculative, but actual and imminent."

23XI Racing and Front Row Motorsports, through their lead lawyer, Jeffrey Kessler, argued that without a charter agreement, the teams could lose their sponsor partners, and the drivers could leave for another team. Whitney viewed both of those prospects as too speculative.

Whitney addressed that the teams did not allege that their business would not survive without a preliminary injunction. "Instead, they allege that their businesses may not survive without a preliminary injunction. This allegation does not indicate an 'impending threat of operations not surviving the pendency of this matter.'"

"Fourth, although loss of goodwill may justify injunctive relief … at this stage, Plaintiffs have alleged only a potential loss of goodwill, contingent on a host of events occurring, including speculation about how third parties may or may not act. Finally, the possibility that NASCAR may exclude open teams … is merely speculative. Based on the parties' representations at the hearing, the Court understands Plaintiffs could sign open contracts today and continue racing in 2025.

"Instead, they have chosen not because they have been unable to negotiate a contract without the provision of which they complain. As such, this speculative harm does not warrant the extraordinary relief of a preliminary injunction."

23XI Racing and Front Row Motorsports have the right to file an appeal.